Three savvy ways to trim your 2024 banking costs  

Capitec, South Africa’s leading digital bank, has announced several updates to its GlobalOne account fees, set to take effect on 1 March 2024. The bank says fees remain simple and transparent and continue to provide value to clients facing high inflation and interest rates that impact their disposable incomes.

Francois Viviers, Executive of Marketing and Communications at Capitec, says, “We truly understand the financial difficulties many South Africans face. That’s why we approached this adjustment with a deep commitment to affordability and transparency. Fees for digital banking remain mostly the same, and we even reduced the cost of immediate payments to be the lowest in the market. Self-service on digital devices in our branches is half the cost of consultant-assisted service, and we’ve now made cash withdrawals the same at all ATMs in South Africa, so our clients never need to queue at our ATMs.”

Key highlights of Capitec’s fee updates include:

  • Monthly account fee of R7.50: Considering clients’ financial pressures, the monthly account fee will increase by only 50c.
  • App and online payments remain the same at R1 to Capitec clients and R2 to other banks.
  • Immediate payments for R6.50: Acknowledging the need for clients to make easy and affordable instant payments to other banks, Capitec is keeping PayShap payments below R100 free and reduced immediate payment for any amount over R3 000 to only R6.50.
  • Online shopping with Capitec Pay at R1: With the surge in online shopping, Capitec Pay, an innovative, secure, and simple-to-use payment solution, has gained over 4 million clients since its launch in February 2023. The fee for Capitec Pay will remain unchanged at R1.00, ensuring continued accessibility for clients embracing online transactions.
  • ATM withdrawals at any ATM for R10 per R1000: Recognising the inconvenience of ATM queues, particularly for essential cash transactions in informal markets like spaza shops and taxis, Capitec has now made cash more accessible for its clients. The bank has made its cash withdrawal fees at its ATMs and other banks’ ATMs the same, allowing clients to access cash conveniently from over 28 500 ATMs nationwide without incurring an additional cost at non-Capitec ATMs.
  • Till points withdrawals for R2.00: Viviers says South Africans who need to use cash can do so affordably by withdrawing money at most retailer till points.
  • Self-service banking at half the cost of assisted service: With approximately 95% of its clients preferring self-service banking in branches, Capitec has kept most fees at R5.50 per transaction – half the cost of consultant-assisted transactions. This strategic approach reflects the bank’s commitment to innovating with technology to create a better client experience and put savings back in clients’ wallets.

“To reduce banking fees in 2024, you should consider your total cost of banking compared to the value you get. Capitec offers a full-service banking solution with great savings, insurance, and credit options. A client with a medium level of banking activities could easily pay as little as R76 per month before taking the interest and Live Better benefits earned into account. Based on independent market research, a traditional bank would cost a client between R100 and R200 per month for the same transactions.” adds Viviers.

Three ways to reduce your 2024 banking costs

As we navigate the economic challenges of 2024, it’s crucial to be proactive in managing our finances. One area that often gets overlooked is bank fees. These can quickly add up if not monitored closely. So, alongside Capitec’s fee adjustments, Viviers also recommends three ways South Africans can avoid their bank costs racking up over 2024:

  1. Go digital with online and card payments: Viviers encourages South Africans to consider paying by card or digital methods instead of using cash. Furthermore, immediate payments via a banking app or PayShap are more convenient and cost less than withdrawing and paying with cash. This is particularly helpful when you pay for rent, services, or large purchases from someone else.
  2. Earn cash back with credit card purchases: Viviers says that Capitec credit card clients earn 1% cash back on all purchases. He says it’s like an extra payday, where Capitec pays cash back into your Live Better savings on the 10th of every month.
  3. Use WhatsApp and your banking app to track your spending: Viviers says South Africans can use WhatsAppand their banking app for their banking needs instead of visiting a branch. Using WhatsApp means clients can save travel and airtime fees by connecting to accessible and convenient banking 24/7, without visiting a branch or calling the bank’s client service centre. Similarly, the banking app can help South Africans understand their spending and save on banking fees.

Viviers concludes, “Effectively managing your bank costs is simple but requires people to take an honest view of what they pay and the value they get. With the right banking partners and a few small changes to leverage digital banking and move away from cash or branch-based service, you can easily save thousands over a year.”