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South Africans wise up to bank charges

7 May 2009

Low bank charges are becoming the most important factor for South Africans when it comes to choosing a bank, personal finance website Justmoney.co.za said on Wednesday.

In its latest survey, 47 percent of respondents polled listed "low bank charges" as the most important factor when it came to choosing a bank.

"I think we are nearing a point where South Africans are becoming genuinely interested in their day-to-day banking charges," Justmoney's general manager Andy Gilder said in a statement.

"Sure, there are a countless number of South Africans who remain oblivious to their monthly bank costs, but in general I think we are becoming far more aware of what some people call 'hidden costs'."

Gilder added that South Africans needed to get to a stage where they would change banks if they were unhappy. "Apathetic clients do not make for a competitive industry," he said.

Justmoney.co.za asked its users "What do you look for in a bank?," and the results reflected that 47% wanted low bank charges, 27% went for good interest rates, 23% wanted service, while seven percent said that convenience was most important.

Gilder added that more users on their website were accessing calculators and on-site comparison tools than ever before.

"Over the last few months, we have noticed far higher traffic figures on our bank account comparison tools, with users accessing fee details pages more often.

"We hope that South Africans are using sites like our own to become more informed about the various options available to them, because throwing money away on unnecessary bank charges is criminal in times as tough as these."

Gilder said banks offered very competitive bundled packages as opposed to "pay as you use" options. "Consumers can pay less than R100 per month if they are disciplined in the way they bank."

He also suggested taking advantage of technology.

"If you are fairly technologically savvy, there is virtually no reason for you to use your branch anymore - and banks are trying to move more of their business online by charging higher fees for in-branch transactions, so using technology will save you money as well as time."

Sapa