Absa announces increase in bank charges

05 Dec 2007 12:17 - Staff Reporter

Absa will increase its bank charges by 4,2% on average for 2008, it announced on Wednesday. However, it said a number of products and services would cost less or be free of charge from January 1. The new pricing was aimed at encouraging customers to use the cheaper digital banking rather than going into branches, Absa said in a statement.

Absa will increase its bank charges by 4,2% on average for 2008, it announced on Wednesday.

However, it said a number of products and services would cost less or be free of charge from January 1.

The new pricing was aimed at encouraging customers to use the cheaper digital banking rather than going into branches, Absa said in a statement.

It would scrap monthly telephone-banking subscription fees and airtime top-up transaction fees, leave internet banking fees and cash-deposit fees unchanged, and simplify ATM transaction pricing.

An increase in cheque fees was designed to encourage customers to switch to the more convenient, safer and cheaper transaction methods of internet banking, telephone banking and cellphone banking.

Absa said cash-deposit fees for small businesses would remain unchanged, while Mzansi customers would pay only 13 cents more for ATM cash withdrawals and 25 cents more for external debit orders.

Mzansi customers would still get two free balance enquiries a month and would not be charged for rejected ATM, Saswitch or POS transactions.

Absa said there would be no increase to information charges next year.

The new prices would come into effect on January 1.

At June 30 this year, Absa had assets of R554-billion, 771 physical outlets, 8,8-million customers, 7 455 ATMs and 35 986 permanent employees.