By Tokiso TKay Nthebe
Are high banking fees eating into your profits or personal finances?
Managing your banking costs does not have to be complicated. While banking jargon can be overwhelming, optimising your fees is simpler than you think.
This blog shares you how to take charge of your banking expenses and make the most of every Loti.
1. Download Your Bank’s Pricing Guide
First things first, improve your knowledge! When it comes to managing your money, the more you know, the better. Start by getting a copy of your bank’s pricing guide which is updated annually. This document, which you can download on the bank’s website, details the costs of various transactions and services, helping you make informed decisions that align with your financial goals, lifestyle, and budget.
2. Choose the Right Pricing Model
The next step is to choose a pricing model that fits your wallet. Most banks offer two main pricing models to choose from i.e. Bundled or Pay-As-You-Use pricing which are discussed in the table below.
Table 1: Bank Pricing Models
| Bundled Pricing | Pay-As-You-Use (PAYU) Pricing |
| A fixed monthly fee covers a set of services, such as scheduled payments, certain debit orders, point-of-sale transactions, and a limited number of ATM withdrawals. | You are charged for each transaction separately. The more transactions you make, the higher your total fees. |
| A monthly account maintenance fee applies. | A monthly account maintenance fee applies. |
3. Use Your Account Strategically
To keep your fees low, use your account efficiently:
- Minimise frequent cash withdrawals: Instead of withdrawing M100 daily, consider making one larger withdrawal to reduce transaction fees.
- Understand your account maintenance costs: Your fees may vary depending on your customer segment and the pricing model you select.
- Optimize digital transactions: Many banks offer lower fees for online transfers and card payments compared to cash transactions.
By staying informed and making smart banking choices, you can reduce unnecessary fees and maximise your hard-earned money. Start reviewing your banking costs today, navigate your finances with confidence and take control of your financial future.
Tokiso TKay Nthebe is an author, podcast host, financial coach and lead advisor at TKO Financial Wellness & Advisory who is passionate about financial wellness, education and financial planning. Subscribe to the FREE email newsletter for personal finance content and tips.
