Absa the most expensive bank in South Africa

The Solidarity Research Institute (SRI) found that Absa’s Gold Value Bundle and Premium Package are the most expensive bank accounts for sophisticated banking needs in South Africa among the country’s largest banks.

The SRI published its latest Banking Charges report for 2024, showing how pricing at South Africa’s biggest banks compares based on user profiles.

Solidarity’s annual bank charges report only analyses ordinary transaction profiles – accounts available to any member of the public. 

This means that accounts for the youth, students, the elderly, specific religious groups, and private bank accounts are not covered. 

It also does not include accounts with a minimum or maximum monthly income specified unless it is the only one in the category offered by a specific bank.

In addition, while some banks prescribe income levels for different accounts, the consumer profiles Solidarity used in its report are not compiled according to income level but according to the number of transactions for each profile.

For example, the sophisticated banking needs category looks at bank accounts that allow 25 and 30 particular transactions, as seen in the table below.

Middle-class income and sophisticated banking needs

This comparison uses the transaction profile with 25 transactions per month. This category contains banks’ flagship accounts—those marketed to the core customer base. 

Accounts in this category qualify for the banks’ respective loyalty programmes, although Capitec’s programme is not nearly as extensive as the other banks. 

It also includes other added-value forms, such as linked credit cards, insurance at a discount, access to airport lounges and other packages that vary widely from bank to bank. 

Although Capitec does not have such an extensive loyalty programme, this bank is still included because it has many customers in this consumer segment.

When looking purely at costs, Capitec is the clear winner in this category, especially assuming that consumers would have a balance that would earn interest in their transaction accounts for at least part of the month.

However, when looking at banks with a proper value proposition, FNB is the cheapest. 

This is due to the comprehensive list of costs included in the monthly fee of R99. Only the purchase of electricity costs R3 extra.

Nedbank is in second place, having placed last last year. At Nedbank, all transactions on the list—apart from sending cash to a cellphone number—are included in the monthly fee of R99.

The Absa Gold Value Bundle is the most expensive bank account in this category.

Below is the ranking of the bank accounts that fall into this category.

Higher middle-class income and sophisticated banking needs

The consumer profile with 30 transactions per month is used for this comparison. Accounts in this category focus more on added value and rewards programmes than on cost. 

However, Solidarity’s report aims to compare costs, and consumers are therefore encouraged to check whether the added value justifies the extra cost. 

The report explained that while cost is not the main factor for consumers in this category, looking at it before considering other factors is still useful. 

Other factors are, for example, how busy the bank is if one has to visit branches regularly, services such as 24-hour access to bankers and the rewards programme, as well as access to airport lounges, linked credit cards and home loans, and discounts for married couples. 

This section determines the most competitive accounts by the number of free transactions included in the monthly fees. 

Although Nedbank’s Migoals Premium account appears to be the most expensive, with a monthly amount of R240 compared to R230 per month for the other three banks, it easily wins this category, as all transactions on the list are included in that amount. 

The report found that Nedbank has greatly simplified its offering and thus also reduced the total cost. 

Next to Nedbank, FNB’s Fusion Premier account is the cheapest. 

Sending money to a cellphone number and buying electricity are the only services that incur extra costs apart from the monthly fees. 

In this category, it is also strange to note that at Absa and Standard Bank, there are still fees when proof of payment is sent to the beneficiary, while it is included in all other banks’ packages.

In Standard Bank’s case, in its MyMo Plus account, it is also included.

Below is the ranking of the bank accounts that fall into this category.