Keeping track of bank charges

Banks charge you for several things: the act of keeping your money safe, the convenience of accessing it when you need to no matter where you are, and for the peace of mind that your money will still be there tomorrow. On top of this, banks will usually charge you for a variety of other financial management services.

In light of these charges, there are a variety of ways to ensure that your bank doesn’t charge you more than they have to. First, be aware of what charges you are likely to incur. Most banks will charge for the following:

• Monthly management: this is usually a flat fee that increases yearly
• Specific transactions such as cash withdrawals,  cash deposits, balance enquiries and inter-account transfers
• Internet and cellphone banking
• Overdrafts
• Debit orders or returned debit orders due to insufficient funds in your bank account
• Replacement and/or additional cards

When choosing your bank account, remember that different types of accounts come with different charges depending on your level of use. So, it's a good idea to find out what services your bank charges for and what they offer for free. Compare what you are charged with other banks and you might find that changing to another bank may save you money in the long run.

Other tips for minimising the banking fees you have to pay are:

• Keep track: Look through your bank statement on a monthly basis so that you know exactly what you are being charged for.
• Withdrawing from ATMs: Always makes sure you withdraw money from an ATM in your bank’s network, as withdrawing money from another bank’s ATM will incur you additional bank fees. Keep your transactions to a minimum by not withdrawing small amounts of money - rather, determine how much money you’ll need on a weekly basis and withdraw that amount in advance.  
• Debit orders: Always make sure you have money in your account to cover debit orders that come off it. If you debit order is returned or bounces due to insufficient funds in your account, your bank will charge you a penalty fee.
• Technology: Using Internet or cellphone banking is not only convenient but also works out cheaper than performing transactions at your bank branch. Some banks offer these services for free while other banks will charge you for these services.

Another convenient features offered by banks are notifications, usually via SMS or email, which inform you of any activity on your account. This is helpful in keeping track of your spending, however this does come at a cost at some banks. Decide whether this service is a necessity for you or limit it only to transactions over a certain amount so you don’t get a notification every single transaction, even that R15 you swiped for coffee. 

Although the amounts banks charge you may seem small, they do add up. Keeping track of your bank charges will not only allow you to but can also save you money in the long run. This money you can then spend on other necessary items or put towards a bigger purchase.

Are you looking for a bank with low bank charges? Read our bank account reviews to find the one that suits your needs and then apply for a bank account online.