Save On Bank Fees Before Cutting Your Monthly Budget

While some cut corners on their family budgets, stop eating out and settle their store-cards to counter the effects of the recession, others find quick and simple ways to curb costs without impacting on their lifestyle. Banking is a case in point.

Consider this: Did you know that the majority of people spend R200* on bank fees a month? Over a year that could add up to thousands of Rands - money that could be used towards your child’s education or getting that leak in your bathroom fixed.

By reducing your bank fees, you could, over time, accumulate a tidy sum to use towards those luxuries you’ve had to cut back on, like going out for a meal with friends or enjoying a weekend away. Unfortunately, many of us don’t have the time or inclination to read our monthly statements and aren’t aware of the extra costs our bills incur that could be avoided.

While reading your bank statement with a fine toothcomb at month-end may be one way to cut bank fees, another, easier option is to take some preventative steps and make use of smart technology that drives down time and money and in turn, bank fees.

Reviewing Your Savings Options
Here are some practical tips on how to review your saving options:

Do Your Homework
Trying to cut down on family budgets when you’re paying top-dollar for your banking service doesn’t add up. Instead, do your homework and research how much your bank fees cost you a month by going online and reviewing their rates.

Fortunately, it is possible to hold accounts at different banks – it all depends on your needs. The bank that offers the highest interest on your savings account may not necessarily offer a credit card or be tailored for business clients. When looking into bank savings account options, shopping around is recommended to review different banks’ products and open up two or three accounts at different branches if required.

Once you’ve decided what you need an account for - to grow your savings plan to pay for a holiday or deposit on a car, a credit card to help buff against emergencies or a business account for SMEs - finding out which bank offers the best rates is in your best interest. Doing so could positively affect your returns on investments and savings accounts.

Go Digital: Save Paper
Obliterating the need for capturing data by hand, innovative paperless systems allow clients to draw funds, deposit, transact and apply for credit in real-time without having to fill in any forms, saving both time and money. The process takes as little as 10 minutes – ideal for the person who’s rushing to the bank during their lunch break and doesn’t have time to spare. By reducing the manual labour involved in the process, back-end fees are lower as staff aren’t needed to balance any books at day-end or capture any client information, which, in turn, greatly impacts the reduction of bank fees.

Use IT to Save You Cash
Over the years, banking has evolved into a slick and convenient service. And, with the recent implementation of tools like biometric identification systems, consumers can knock-off unnecessary bank charges, effortlessly. This also helps when it comes to setting up a savings plan in the long run.

While it sounds like something out of Star Trek, biometrics refers simply to the digital identification of a person through individual features like their eyes, voice, face or fingerprints. Used extensively in the US and Europe, biometrics has also made its way to SA. Affording greater security to a client’s account by reducing the risk of fraud, biometrics is also faster than using a card or entering a PIN, meaning money is saved. Biometrics is used in-branch to allow a client access into their account. It works by scanning a client’s fingerprints while they are with a consultant, ensuring only they can deposit, withdrawal or transfer funds from their account.

Do Your Banking Online
Many people and businesses prefer internet banking because it's user-friendly, eliminates the need for hard-copy documents or a consultant’s assistance and prevents some of the other security risks associated with banking such as carrying or transporting cash. However, like any banking method, one should always take steps to ensure online transactions are secure.

By: Sumarie Brand

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www.capitecbank.co.za”>Capitec Bank is a South African retail bank which provides affordable, accessible and simplified banking with personal service. The bank uses innovative technology to drive down costs, to increase accessibility and to simplify client processes. Capitec Bank’s innovative Global One facility offers a range of transacting, credit and www.capitecbank.co.za/products/savingoptions”>saving options which are all accessed using a paperless, card-driven process in real-time.