Standard Bank simplifies, cuts bank fees
Standard Bank has simplified its bank fee pricing structure from January, with reductions in certain areas as well as price freezes in others.
Given the economic environment and the obvious impact of the Covid-19 lockdown, banks have been under pressure not to increase monthly account or bundle fees as part of their annual pricing changes. FNB kept monthly account fees unchanged in July.
Read: FNB cuts and simplifies (most) fees
Standard Bank says its “decision to review and amend its pricing was made after careful consideration of several factors, including the economic impact of 2020, the current realities for people and businesses, easier access to banking services, and the need to make pricing simpler for customers to understand”.
Its monthly administration or bundle fees will remain the same – with the exception of the middle-market Elite Account where the bundled fee increases marginally from R107 to R110 per month. A full guide to 2021 pricing is available here.
| Monthly fee | 2020 | 2021 |
| MyMo | R4.95 | R4.95 |
| Access | R5.80 | R5.80 |
| MyMo Plus | R110 | R110 |
| Elite | R107 | R110 |
| Prestige | R209 | R209 |
| Private Banking | R369 | R369 |
| Signature Banking | R469 | R469 |
The bank has altered its cash withdrawal pricing to a flat rate of R7.50 per R1 000 (or part thereof), from the previous fee per R100. This is surely to incentivise fewer, larger withdrawals from the predominantly lower-income segment of customers who incur these charges (a certain value of withdrawals is bundled ‘free’ with accounts targeting middle- and higher-income customers). Any withdrawal of R400 or above from its ATMs will be cheaper than at present.
Standard Bank says that it has “removed the ATM cash withdrawal Saswitch fee charged to its customers who withdraw cash using ATMs belonging to other banks”.
While those at other banks’ ATMs are charged at a steeper rate (R10) per R1 000, a withdrawal of any amount is cheaper than the current price structure.
| Standard Bank ATM | 2020 | 2021 | Change |
| R100 | R1.90 | R7.50 | 295% |
| R500 | R9.50 | R7.50 | -21% |
| R1 000 | R19 | R7.50 | -60% |
| R2 000 | R38 | R15 | -60% |
| Other bank ATM | 2020 | 2021 | Change |
| R100 | R10.90 | R10 | -8% |
| R500 | R18.50 | R10 | -46% |
| R1 000 | R28 | R10 | -64% |
| R2 000 | R47 | R20 | -57% |
The fee for withdrawing cash at participating retailers has reduced from R2 to R1.40 (although on bundled account options, these transactions are free).
The pricing structure for cash deposits at ATMs has also changed to a rate (R9) per R1 000. Branch deposits attract a minimum fee of R60 (and are charged at R18 per R1 000).
For those customers on bundled accounts, there have been some changes to the limits for cash withdrawals or deposits.
| Monthly | Bundled/free cash withdrawals* | Bundled/free cash deposits* | ||
| 2020 | 2021 | 2020 | 2021 | |
| MyMo Plus | R5 000** | R5 000** | R5 000 | R5 000 |
| Access R33pm | R3 000 | R3 000 | One deposit | One deposit |
| Access R49pm | R3 000 | R3 000 | Two deposits | Two deposits |
| Elite | R5 000 | R5 000 | Three deposits | R5 000 |
| Prestige | R10 000 | R7 500 | Three deposits | R8 000 |
| Private Banking | R20 000 | Unlimited | Three deposits | R10 000 |
| Signature Banking | R20 000 | Unlimited | Three deposits | R10 000 |
*At Standard Bank ATMs
** Includes up to two at other bank ATMs
Debit order charges – also free on bundled account options – have been slashed from R4.50 for internal or R18 for external transactions currently to a flat rate of R3.50 from January.
The fee for buying airtime or data (via the bank’s digital channels) has been cut by 58% to 50c, while prepaid electricity purchases remain the same (R1.50). Playing the Lotto on the bank’s channels will cost R2.50, or 9% more.
New account coming …
Surely bolstered by the success of its digitally-led MyMo account, the bank will “also be launching a new hybrid savings account which features zero monthly fees, free ATM cash deposits and interest on positive balances”.
It says: “This account will also boast simple and affordable transactional fees, enabling customers to receive, deposit and store money as well as make payments via the bank’s digital platforms and cash distribution network.”
Sounds an awful lot like Capitec’s Global One or TymeBank’s EveryDay accounts, doesn’t it?
Read: Despite recovery, Standard Bank remains cautious
Source: moneyweb.co.za
