I can't believe MUST READ: best and worst bank accounts in South Africa

Union Solidarity has released the 7th edition of its annual banking charges report, showing the cheapest and most expensive banking options across the major retail banks in South Africa.

The report is based on monthly banking fees from South Africa’s five biggest banks (Standard Bank, Absa, Absa, Nedbank and Absa), across four client profiles.

Each profile represents a different type of banking customer, and covers a different number of transactions (from a basic 12 transactions, to a comprehensive 30 transactions).

Further, the bank accounts are separated into two groups, namely those marketed at low-income groups and those marketed at middle-income groups.

The profiles have been compiled in-line with the banks’ promotional claims and account goals – namely limiting cash withdrawals, choosing internet services over physical branch visits and no overdraft or international transactions.

According to the report, Capitec Bank has ‘generally’ emerged as the cheapest bank for the needs of most people, though competition from the other four banks is becoming stronger.

Low Income (12 transactions)

#	Bank	Account	12 Transactions cost
1	Capitec	R5 000 balance	R11.29
2	Capitec	R2 000 balance	R24.34
3	Absa	Transact	R24.45
4	FNB	Easy Account – PAYT	R27.85
5	Nedbank	PAYU	R28.90
6	Standard Bank	Access – PAYT	R31.59
7	Capitec	R0 balance (No interest)	R33.05
8	FNB	Easy Account Bundle	R50.90
9	Nedbank	Ke Yona Bundle	R70.10
10	Standard Bank	Access Plus	R85.60

Low Income Sophisticated (17 transactions)

#	Bank	Account	17 Transactions cost
1	Capitec	Global One (R10 000 balance – R43.53 interest)	R5.72
2	Capitec	Global One (R2 000 balance – R8.71 interest)	R40.54
3	Absa	Flexi Value Bundle	R57.40
4	Absa	Flexi	R101.55

Middle Income (25 transactions)

#	Bank	Account	25 Transaction cost
1	Capitec	Global One (R10 000 balance – R43.53 interest)	R30.52
2	Capitec	Global One (R2 000 balance – R8.71 interest)	R65.34
3	Standard Bank	Elite Plus	R100.25
4	Absa	Gold Value Bundle	R102.00
5	Nedbank	Savvy Plus (alternative profile)	R104.00
6	FNB	Gold Cheque Unlimited	R104.75
7	Nedbank	Savvy Plus	R108.00
8	Standard Bank	Elite PAYT	R168.15
9	Absa	Gold PAYT	R238.75

Upper-middle Income (30 transactions)

#	Bank	Account	30 Transaction cost
1	Absa	Platinum Value Bundle	R163.80
2	Nedbank	Savvy Bundle	R180.00
3	FNB	Premier: Unlimited	R182.20
4	Standard Bank	Prestige Plus	R185.30
5	Standard Bank	Prestige PAYT	R207.70
6	FNB	Premier PAYT	R285.25
7	Absa	Platinum PAYT	R286.60

According to Solidarity, there has been a phasing out of pay-as-you-transact accounts in favour of bundle accounts, particularly for middle and upper-middle income profiles.

At 25-30 transactions a month, a PAYT option works out to be more expensive, and bundles are the more cost-effective route. While account fees have stayed the same, PAYT fees have increased.

The general bundle fee has been relatively stable at around R100 for the past three years, which is a positive occurrence, as it means most bundle users have experienced decreasing costs, in real terms, Solidarity said.

Comparing bundle accounts, Standard Bank comes out on top, the report showed.

#	Bank	Account	Fixed fee	Average cost (all profiles)
1	Standard Bank	Elite Plus	R95.00	R99.20
2	Absa	Gold Value Bundle	R98.00	R101.20
3	Nedbank	Savvy Plus (alternative profile)	R100.00	R103.00
4	FNB	Gold Cheque Unlimited	R100.00	R103.80
5	Absa	Platinum Value Bundle	R159.00	R162.20
6	FNB	Premier Unlimited	R175.00	R179.80
7	Nedbank	Savvy Bundle	R180.00	R180.00
8	Standard Bank	Prestige Plus	R179.00	R183.20

Source: businesstech