With many South Africans tightening budgets in January, financial experts are urging consumers to review bank fees and minimise unnecessary charges. Picture Credit: Mint
By Aisha Zardad
South Africa — South Africans entering the new year are being urged to scrutinise the way they bank, as unnecessary fees and complex charge structures continue to burden consumers and erode household budgets.
January often brings what analysts call “Januworry,” a period when many people reassess their spending after festive season costs and prepare for expenses such as school fees, transport and daily living costs. During this time, experts say bank fees — especially those that provide little tangible value to the account holder — can add further financial strain.
Research previously conducted by the Competition Commission of South Africa’s Banking Market Inquiry (2017–2019) found that retail banking fees are often complex, bundled into packages difficult for consumers to compare, and sometimes poorly matched to actual usage patterns. Many customers end up paying for services they rarely or never use.
FinScope Consumer South Africa’s 2023 survey highlighted that while formal access to banking has become widespread, many account holders maintain low balances, rarely fully utilise their account features and remain vulnerable to high monthly costs that compound over time.
Financial planners say consumers should closely review monthly statements to identify routine charges such as administration fees, transaction fees, ATM withdrawal costs and penalty charges — especially for exceeding transaction limits. These can vary significantly between account types and banks.
“Reviewing your banking fees is one of the simplest ways to find savings, especially if your current account offers services you don’t use,” says Lebogang Molefe, a Johannesburg-based financial adviser. Molefe advises customers to consider lower-fee or digital-first accounts if their transaction patterns are modest, while keeping in mind that some services — such as branch access or higher withdrawal limits — might be worth the price for frequent users.
The Financial Sector Conduct Authority (FSCA) has previously expressed concern that not all banks adequately disclose how fee structures work, and that customers may not always understand the total cost of holding and using certain accounts. Finance Minister Enoch Godongwana noted that the regulator’s conduct standards require fees to be fair and clearly communicated to customers.
Banking insiders say fee structures have evolved as financial institutions invest in digital platforms, security and customer services, but that transparency with consumers must improve. According to industry pricing data, bundled or premium accounts — which can cost significantly more — may only offer benefits justifiable for high-income consumers actively using those features.
For example, entry-level accounts may carry low or no monthly fees with basic services, while mid-tier or bundled packages — often marketed with perks — can cost several times more, potentially outstripping the value they provide to less active customers.
To manage costs effectively, financial experts recommend that bank customers:
• Compare fee schedules across different account types and banks.
• Consider switching to digital or low-fee accounts if appropriate.
• Track monthly statements for unexpected or incorrect charges.
• Ask their bank for a breakdown of fees and alternative options.
Regularly reviewing banking products, especially at the start of the year when personal budgets are reset, can reveal significant savings over time and help families keep discretionary costs under control.
