Maximising Value: A Guide To Withdrawing Cash At ATMs For Minimum Fees
Research has shown that 95% of South Africans withdraw cash from an ATM at least once a month. Many of our Paymenow users also choose to withdraw cash via an ATM once they have cashed-out their earned wages. But ATM withdrawals are not free – banks will charge every time you withdraw cash. So here are some tips we put together to help you pay the least fees when you need to withdraw money often.
1. Understand Your Bank's Fees
In South Africa, major banks like Standard Bank, ABSA, FNB, and Nedbank have ATMs available across the country. But bank clients must aware they will be charged for every cash withdrawal at an ATM. Here is a table of ATM fees per bank (note this information was correct at time of publication, but may change every year).
| Bank | Bank’s ATM |
|---|---|
| Absa | R10 per R1,000 |
| Capitec | R9,50 per R1,000 |
| FNB | R7 per R1,000 up to R2,000, then R2.30 per R100 |
| Nedbank | R10 per R1,000 or part thereof |
| Standard Bank | R8 per R1,000 up to R3,000, then R2,20 per R100 |
| Tyme Bank | PnP/Boxer till withdrawal: Free |
2. Choose The Right ATM
Bank clients are not limited to their own bank’s ATM – cash withdrawals are also possible at other banks’ ATMs. But be aware that your bank charge extra fees for this service. To pay the lowest fees, choose an ATM linked to your own bank. Here are the fees you must pay to use another bank’s ATM:
| Bank | Other Bank ATM |
|---|---|
| Absa | R10 per R1,000 |
| Capitec | R10,50 per R1,000 |
| FNB | R12 + R2.30 per R100 |
| Nedbank | R12 + R2.50 per R100 or part thereof |
| Standard Bank | R10 per R1 000 up to R3 000 per month, then R2,20 per R100 |
| Tyme Bank | Other retailer’s till withdrawal: R3 |
3. Plan Cash Withdrawals To Minimise Fees
As explained above, banks charge every time a client withdraws at an ATM. This means a simple way of reducing ATM fees is withdraw as few times as possible. For example, instead of withdrawing small amounts once a week, withdraw a larger amount once a month. Be sure to only withdraw the exact amount needed, as cash is at risk of being stolen.
4. Choose Fee-Free Options
While ATM withdrawals are the most popular way of withdrawing cash, remember there are other options available. You can also use your debit card to get cash-back at a retailer like Pick n Pay, Shoprite or PEP. This method allows you to withdraw cash at a far cheaper cost. Some retailers also have their own products which allow you to deposit and withdraw cash.
5. Use Internet Banking
All major banks now have apps linked to your account. These apps allow you to check your balance and do transactions, mostly for free. This means it is much cheaper to use the app for banking instead of withdrawing cash – for example, if you need to give someone money it will be cheaper to pay them via your banking app than by withdrawing the money at an ATM and paying them in cash. Using your banking app also allows you to keep track of how much money you have, so you can plan trips to the ATM only when needed.
The next time you need to withdraw cash, you can avoid giving some of it away to the bank. Keep these five tips in mind to get the best price for your money. Stay informed, plan ahead, and enjoy the convenience of ATMs while keeping more money in your pocket.