Do you get a nasty surprise at the end of every month when a large portion of your hard-earned cash goes towards bank fees? Although banks are required by law to disclose their charges, figuring out all the ways you are charged is often quite complicated. For many people, the first time they learn about a fee is when it shows up on their account. Keeping track of bank charges is difficult, but knowing about some of the common sources of bank fees and how you can avoid them can definitely save you money.

Hidden fee 1: Drawing money

Most bank fees result from ATM activity. Withdrawing cash at an ATM can be a costly affair. While Capitec Bank charges a flat rate of R3 per ATM withdrawal at their ATMs, most banks charge you a pro-rata rate over-and-above the initial minimum amount. When drawing money from another bank’s ATM, you will be charged fees from both banks making it even more expensive.

Tip: Anticipate your cash needs and take out enough money to avoid repeated withdrawals. It's more efficient to take out R500 to spend over a week than it is to draw R100 from the ATM every day. Put the extra cash in a safe place until you need to use it.

Tip: Try and manage your withdrawals to avoid using another bank’s ATM. When choosing a bank, make sure it has branches or ATMs near where you live and work as limited accessibility will force you to make withdrawals at other banks’ ATMs.

Tip: Debit cards are free with most savings accounts and can be used for making card purchases at most retailers. Besides being cheaper than ATM withdrawal charges, paying by card is more convenient and safer than carrying around large amounts of cash. Capitec Bank offers zero fees on debit card purchases.

Tip: Use your debit card to draw cash at selected retailers. Be sure to ask your bank whether it charges a fee for using the cash withdrawal option. Capitec Bank charges a flat fee of R1 per withdrawal — the lowest in the industry.

Hidden fee 2: Bounced debit orders

According to Capitec Bank’s CEO, Riaan Stassen, 40 percent of debit orders are returned. This means that there were insufficient funds in the account to pay the debit order. But while Capitec Bank only charges R3.50 for a bounced debit order, most other banks are ruthless when it comes to penalty fees for rejected transactions — sometimes charging as much as R50. What’s more, missing debit order payments can damage your credit rating.

Tip: The easiest way to avoid a penalty fee is to track your account balances. Using internet banking or a service such as Capitec Bank’s SMS Update will help you keep tabs of all activity on your account.

Tip: Only schedule debit orders to go off a few days after payday. Remember that transfers into your account can take up to two working days to clear if the payment is made from a different bank.

Tip: If you do not have a regular monthly pay date, sign up for internet banking and pay beneficiaries via EFT (electronic funds transfer).

Hidden fee 3: Drawing money when abroad

With the prevalence of ATMs it is becoming increasingly easier to travel without having to exchange large sums of money. But without proper preparation, these transactions can have expensive fees that quickly add up. For example, you may be charged twice for cash withdrawals — at home and at your destination.

Tip: Call your bank before travelling abroad as certain banks may freeze your account until they can confirm that your foreign transactions are legitimate.

Tip: Find out which international banks form part of your bank’s network as these may allow you to use their ATMs at no charge.

And finally, when you're deciding who to bank with, shop around and look for the financial institution that suits your needs and your pocket. Try and learn about all their fees upfront and ask a lot of questions. If you still find yourself paying several account and service fees, talk to your bank about whether another type of account might serve you better. Consolidating your accounts and maintaining higher balances may also help you avoid unnecessary or excessive fees.

For further information about Capitec Bank, click here!

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