Business / Business News

Hilton Tarrant
5 minute read
8 Dec 2016
8:23 am

Standard Bank 2017 fees dissected

Hilton Tarrant

20%-plus jumps for common out-of-bundle transactions, one notable reduction, and monthly prices increase.

Standard Bank initially indicated that they plan on closing 91 branches, with 1200 employers potentially losing their jobs. Picture: Moneyweb

Standard Bank, the country’s largest bank by number of customers, has increased the monthly fees of its two mid-market accounts. The pricing of ‘Elite Banking’ (comparable to other banks’ gold accounts) will increase by 5% to R100 from January, while ‘Prestige Banking’ (a ‘platinum’ account) will jump by 6% to R190. These increases are broadly in line with inflation.

While the minimum monthly service fee for those not on the bundled pricing options will remain flat (for both Elite and Prestige), 2017 will see the introduction of a monthly cheque card fee for both (R8.25 and R12.50, respectively). This means an effective increase of 15% for Elite accountholders and 13% for Prestige clients.

The methodology for calculating fees on cash withdrawals will change from a flat fee plus 1.2% of the value to an amount per R100 drawn. So, for withdrawals at ATMs, the fees will compare as follows:

Elite/Prestige Banking 2017 2016
Standard Bank ATM R1.80 per R100 R4 + 1.2% of value
R100 withdrawal R1.80 R5.20
R500 withdrawal R9 R10
R1000 withdrawal R18 R16
R2000 withdrawal R36 R28
Other bank’s ATM R6.70 + R1.80 per R100 R6.70 + R4 + 1.2% of value
R100 withdrawal R8.50 R11.90
R500 withdrawal R15.70 R16.70
R1000 withdrawal R24.70 R22.70
R2000 withdrawal R42.70 R34.70

With the new pricing methodology, you are more incentivised to draw as little cash as possible from ATMs. Anything over R1000 will cost significantly more in 2017 than it does this year. For example, a R2000 withdrawal at a Standard Bank ATM jumps from R28 to R36 – 29%! The cost of (securing and transporting) cash is only increasing.

Amazingly, Standard Bank customers on either the Elite or Prestige bundles still pay for debit orders (R4.50 for internal and R16 for external ones from next month (up 22%!)) and inter-account transfers to anything aside from a savings or investment account will cost R4 (from R3.90 currently). The fee for electronic account payments via internet/app/mobile banking – also excluded – reduces by 23% to R4 next year, the only notable reduction across its current account product set.

Elite Banking 2017 2016
Monthly fee R100 R95
Electronic debits, balance enquiries, POS, cash at till Unlimited Unlimited
Cash withdrawal – Standard Bank ATM 4 per month 6 per month
Cash deposit – Standard Bank ATM 3 per month 3 per month
Internet, app, cellphone banking Free Free
Annual credit card fee N/A
Pay-as-you-transact pricing (and for transactions over and above those included in bundled option)
Minimum monthly service fee* R55 R55
Monthly cheque card fee R8.25 0
Cash withdrawal – Standard Bank ATM R1.80 per R100 R4 + 1.2% of value
Cash withdrawal – POS R1.80 R5
Cash withdrawal – Other ATM R6.70 + R1.80 per R100 R6.70 + R4 + 1.2% of value
Cash deposit – Standard Bank ATM R1.80 per R100 R4 + 1.3% of value
Airtime purchase using Standard Bank channels R1.10 R1.10
Debit order (internal) R4.50 R4.20
Debit order (external) R16 R13.10
Electronic inter-account transfers (excl savings) R4 R3.90
Electronic account payment R4 R5.20
Balance enquiry at Standard Bank ATM – print R1.50 R1.15
Monthly fee on overdrafts over R500 R68.40 R68.40
Garage card purchase R5 R5
Declined debit order (insufficient funds) R115 R115
Declined POS (insufficient funds) R7.90 R7.50
Declined cash withdrawal – Standard Bank ATM R2.60 R2.60
Replacement card (chip/cheque card) R130 R130

 

Prestige Banking 2017 2016
Monthly fee R190 R179
Electronic debits, balance enquiries, POS, cash at till Unlimited Unlimited
Cash withdrawal – Standard Bank ATM 8 per month 8 per month
Cash deposit – Standard Bank ATM 3 per month 3 per month
Internet, app, cellphone banking Free Free
Annual credit card fee Titanium card free
Pay-as-you-transact pricing (and for transactions over and above those included in bundled option)
Minimum monthly service fee* R94 R94
Monthly cheque card fee R12.50 0
Cash withdrawal – Standard Bank ATM R1.80 per R100 R4 + 1.2% of value
Cash withdrawal – POS R1.80 R5
Cash withdrawal – Other ATM R6.70 + R1.80 per R100 R6.70 + R4 + 1.2% of value
Cash deposit – Standard Bank ATM R1.80 per R100 R4 + 1.3% of value
Airtime purchase using Standard Bank channels R1.10 R1.10
Debit order (internal) R4.50 R4.20
Debit order (external) R16 R13.10
Electronic inter-account transfers (excl savings) R4 R3.90
Electronic account payment R4 R5.20
Balance enquiry at Standard Bank ATM – print R1.50 R1.15
Monthly fee on overdrafts over R500 R68.40 R68.40
Garage card purchase R5 R5
Declined debit order (insufficient funds) R115 R115
Declined POS (insufficient funds) R7.90 R7.50
Declined cash withdrawal – Standard Bank ATM R2.60 R2.60
Replacement card (chip/cheque card) R130 R130

* The minimum account fee will be charged if your total fees on pay-as-you-transact does not exceed this amount. In other words, you will pay at least R63.25 for Elite Banking (R55 + R8.25) and R106.50 for Prestige Banking (R94 + R12.50).

In the case of Prestige Banking, the only time it makes sense to be on the pay-as-you-transact plan – if you require a credit card – is if you don’t withdraw or deposit cash often. Your base monthly fee will be R106.50 for the cheque account and R55 for the standalone credit card. This is cheaper than the R190 bundled fee, but not by much.

Like Nedbank, and rivals, the monthly credit card fees will – largely – increase substantially. It’s the ‘gold’ account segment that will be hardest hit, with the gold credit card fee increasing by 29% to R45 per month. Prestige Banking customers on the bundle pricing option will not be affected as their Titanium credit cards are included in the overall account service fee (the fee for a stand-alone Titanium card is up 31%).

Credit cards – monthly fee 2017 2016 Change
Platinum stand-alone R57/R65** R57 0% / 14%
Titanium stand-alone R55 R42 31%
Gold R45 R35 29%
Blue R45 R49 -8%
Access R45 R49 -8%
Initiation fee (once-off) R145 R145 0%
Card replacement fee (once-off) R130 R130 0%
** Before/after accounts opened on 6 May 2016


* Hilton Tarrant works at immedia. He can still be contacted at hilton@moneyweb.co.za.

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