Beneficiaries who already use Postbank will still receive their grants directly into their Postbank accounts
South Africans who receive their social grants through Postbank have been assured that payments will continue uninterrupted, despite the termination of a Master Services Agreement (MSA) between the South African Social Security Agency (SASSA) and the bank.
Briefing the Portfolio Committee on Social Development on Wednesday, Sassa confirmed that around three million payments were made to beneficiaries through Postbank each month.
This includes 1.96 million social grant payments and 1.08 million Covid-19 Social Relief of Distress (SRD) payments.
“Sassa pays approximately 19 million social grants to about 12 million recipients each month. Of these, around three million payments are made through Postbank, while the rest are paid via 21 other banks,” the agency said.
The total amount channelled through Postbank every month is about R3 billion.
Why the contract is ending
Sassa explained that the agreement with Postbank had lost its original purpose following changes in how grants are paid.
“The Master Services Agreement was premised on services such as over-the-counter payments and the issuing of Sassa-branded gold cards,” the agency told MPs.
However, the liquidation of the SA Post Office in 2023 and the closure of cash pay points rendered those services obsolete.
In March 2024, Sassa formally issued Postbank with an 18-month termination notice, in line with the contract’s provisions. The agreement is set to expire at the end of September 2025.
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What this means for Postbank clients
Despite the contract’s expiry, Postbank will continue to offer standard banking services.
Beneficiaries who already use Postbank will still receive their grants directly into their Postbank accounts.
“The expiry of the MSA signifies the end of a contractual relationship, not the end of service provision by Postbank to its clients. Beneficiaries who choose to continue banking with Postbank will retain access to their funds through familiar channels,” Sassa explained.
Both the Postbank Gold Card and the newer Black Card remain valid for grant withdrawals.
ALSO READ: Postbank assures uninterrupted grant payments despite reports that Sassa contract has ended
No need to switch – unless you want to
Sassa stressed that there will be no disruption to payments.
“All Sassa services will continue as normal. Postbank will continue to provide banking services to its clients as normal, and Sassa will continue to pay the social grants into the beneficiary accounts as is currently the case,” the agency said.
Beneficiaries are not required to switch to another bank unless they choose to do so.
“The ability to change the bank account into which a grant is paid is well known among beneficiaries, and should any client wish to exercise this choice at any time, services are available at Sassa to allow for such.”
For grant recipients using Postbank, nothing changes after September 2025.
Grants will still be paid directly into their Postbank accounts, and Postbank will function like any other bank.
The termination is an administrative matter between the two entities and does not affect beneficiaries’ access to their money.
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