Cut The Fat on Bank fees – And Have a Little Extra to Get by During Tough Times

Do you know how much you pay a month on bank fees? Unless you’re very meticulous and go through your bank statements, it’s likely the answer is no. While you may have a sense of what it costs to withdraw money from an ATM, or swipe your card at a till point, what about all those little extras like making online transfers, monthly debit orders and fees just to have an account?  All in, these fees can quickly add up, costing you rands and cents – rands you could otherwise be saving.

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Take Rebecca Cronje who spends approximately R215 a month on bank fees just for her personal account. That is R2579 a year! Just think what she could be doing with that money if she chose a bank that offers the lowest fees instead. With the festive holiday season around the corner, she could have put a portion of these fees away into a present fund, or towards other everyday costs. Given few people will say no to having a little extra in their pocket, why do we not all pay more attention to what we spend on bank fees? 

Sure, it takes a little homework, but there are plenty of cost-comparisons online. It’s key that you compare apples with apples, to get a sense of where the biggest differences lie. For instance, at TymeBank you will pay low to no fees for everyday transactions. You’ll also pay no monthly fees. That’s why over 4 million South Africans choose to use this bank.  So quickly has the bank grown – thanks to its accessible and affordable banking – since launching in 2019 it is fast catching up to the so-called Big Five banks. In fact, the highest growth that the bank has experienced has been in the past four months alone. This goes to show how South Africans are choosing to bank digitally, while saving significantly on their bank fees. 

Switching to a more cost-effective bank is not only wise, against the backdrop of rising everyday costs, it is almost a must. Taking into consideration that as of October 2021, the average Household Food Basket costs R4 317,56 and electricity costs jumped by a whopping 15% in July along with annual municipal rates increases, money needs to stretch even further.

Adding to this, in November South Africans will pay up to R1,21 c a litre more for petrol, and R1,48 more for a litre of diesel while illuminating paraffin will rise by an eye-watering R1,45 a litre. This means that motorists will be paying 30% more for petrol compared to the start of 2021. To make matters worse, motorists should not rule out paying R20 for a litre of petrol before the end of 2021. There is also the very likely case of an interest rate hike by the end of the year. This means any loans you have will cost you more and will affect your monthly bond repayments, rent, bank loans, store cards and credit card monthly repayments. 

“2021 has seen massive price increases happen across the board. With the price of electricity and fuel rising exponentially, there is a knock-on effect on groceries, products and services. This as manufacturing, transportation and day-to-day operating costs cost more. This will affect consumers’ pockets. 

“What’s more, not everyone has returned to their pre-Covid19 salaries, and many have lost jobs and livelihoods due to the pandemic, making it even more critical to take a good, hard look at every cost that is incurred to see where savings can be made. 

“Bank fees are the one cost you can easily reduce. Now that new banks such as TymeBank are available to everyone, saving hundreds, if not thousands of rands, a year is one of the most logical places to start. This extra money can then be put towards groceries, school fees, uniforms or fuel,” says Cheslyn Jacobs, Executive: Sales & Service at TymeBank.