An international study by consultation firm CapGemini and its research partners, including the European financial management and marketing association, assessed South Africa’s banking costs for the first time and they found that South Africans pay more to own a cheque account than anyone else in the rest of the world.
This is infuriating but not surprising. We opened our business, The Red Apple, in December last year and we were absolutely shocked by the exhorbatant bank charges. For instance we pay R1.20 extra to pay a beneficiary (payee in the UK) instead of an ad hoc payment because – and listen to this – it costs money to save the payee details on the bank’s database. Have you ever heard something so insane!
Also you pay a flat fee plus a percentage for every cash deposit you make. Then you pay for every payment/transfer/balance enquiry/statement whether its on the internet or not!!
Deeply concerning is that all the major banks are in on this deal. This seriously suggests price fixing to me. I know the banks are now being investigated again, but they are so far up Mbeki’s arse I don’t know if anything is going to happen. Now everytime I see these gushy TV ads from Standard Bank (my bank) and the others it just makes me sick. I’m surprised that some of the oversees banks haven’t seen this as an oppurtunity.
Read the actual World Retail Banking Report for 2007.