If you feel your banking fees are too high, you may need to review your banking behaviour.

The recent Solidarity Bank Charge Report rates FNB as one of the best value-for-money banks, with the average middle-class customer able to bank for less than R100 a month.

Comparing banking fees is not an exact science, as everyone has a different banking behaviour, however the report provides an overview of banking fees and gives guidance to consumers as to what they should expect to pay for banking services.

If you are paying significantly more in banking fees, it could be that you are not on the correct package for your needs, or you need to review your banking behaviour to identify which transactions are costing you significantly more.

The report, compiled by the Solidarity Research Institute (SRI), analysed five profiles based on the number of transactions and compared the various banks’ offerings that would satisfy those needs.

One transaction that was not included in the comparison was “instant payment” for electronic transfers. Instant payment is a growing trend, accounting for around 30% of payments. This could impact the cost of banking as these fees vary from R7 to R50 per transaction.

The report did not include penalty fees or credit facility fees. A customer with an overdraft facility could pay up to R69 a month for the facility and penalty fees can be as high as R200. However, these costs can be eliminated by better money management.

For the average middle-class consumer doing an average of 25 transactions per month, bank fees should not be costing much more than R138 a month, even at the most expensive bank.

According to the report, FNB Fusion Aspire customers would pay R99 a month, with Capitec customers paying R97 a month.

Theuns du Buisson, economic researcher at SRI, says Capitec would have been the winner in the middle-class consumer market if it was solely based on the total cost of a bank account. “However, the other banks’ added value, such as loyalty programmes, ensure that FNB’s Fusion Aspire account offers the best value for money for middle-class consumers.”

Du Buisson added that the large number of free transactions offered by FNB also puts them in first place.

Absa Gold Value would cost around R130 a month, Standard Bank’s MyMo Plus account would cost R137 a month and Nedbank Savvy Plus R140.50.

For entry-level or lower-income earners, the best bank account was FNB Easy PAYU, followed by Absa Transact, with Capitec coming in third for low-cost options.

Newcomers TymeBank and BankZero, were the most cost-effective, based on 14 online-only transactions. A TymeBank customer would pay R14 a month and Bank Zero customers would pay R17.

The report identified that banking had become more affordable as banks adapted to the pockets of their customers, and that loyalty reward programmes were putting real value back into the pockets of consumers.

Du Buisson said that “while consumers’ wallets are reeling under the pressure of increased interest rates and inflation, banks are adjusting their value-added offer to ensure they remain competitive. This competition ensures that banks, especially in times of economic pressure, try to compete with each other in terms of favourability and value-added offers. Although accounts at online banks remain cheap, it is the additional offers from major banks that make a difference to where consumers should look for what really fits their pockets.”

Banking fees per profile

Basic banking: 12 and 17 transactions a month

More sophisticated banking needs: 25 transactions a month

In this category Capitec is the best priced bank, however du Buisson says “if one looks at the larger offering of the various accounts, FNB’s Fusion Aspire account towers above the others, with a cost of R99. What makes this special is that this is the account’s monthly fee. It includes all other transactions. Therefore, if more transactions, apart from most cash transactions, are conducted the costs will still be R99”.

High-income earners: 30 transactions a month

The report did not include Capitec in the higher-income comparison as du Buisson says that customers who opt for premier accounts tend to do so for the value-add benefits like airport lounges and reward points which are not offered by Capitec.

Transactions used in comparison

How does your banking behaviour compare?

This article first appeared in City Press.