Uncover the findings of the 2025 Bank Cost Report by Solidarity Research Institute, revealing the most affordable bank accounts in South Africa and what they offer for various income levels.
Image: David Ritchie/ Independent Newspapers
The Bank Cost Report for 2025 by Solidarity Research Institute (SRI) has revealed the major South African banks that have the cheapest bank accounts.
The report looks at the five banks in the country, including Nedbank, FNB, Absa, Standard Bank, and Capitec, that came out on top across three different user profiles including:
- low income and fairly basic banking needs
- middle-class income and sophisticated banking needs
- higher-middle income and sophisticated banking needs
Below is a summary of the various categories, accompanied by a detailed analysis of the available options within each category.
For the low-income profile with a basket of 12 to 17 transactions, Absa came out on top.
Since 2024, Absa has stopped migrating customers on their Transact accounts to their Flexi accounts once they earn more than R3,000 per month.
"For this reason, we can without any reservation, state that Absa is the cheapest bank in the low-income or basic needs category this year," the report said.
Absa is significantly cheaper than its closest competitors in both the 12 and 17 transaction profiles because it offers scheduled payments and internal debit orders for free.
For the 12 and 17 transaction profiles, the cost is R20.50 and R40.50, respectively.
Absa also offers free withdrawals at store counters, which is unusual for this type of account, however, Standard Bank also offers free withdrawals at stores on all accounts analysed in this report.
As transaction volume rises, FNB also becomes more competitive in this category.
According to the report, the middle-income profile, with a basket of 25 transactions, shows a highly competitive market where banks offer various benefits such as loyalty programmes and linked credit cards.
Theuns du Buisson, economic researcher, SRI said: "Capitec is the cheapest at R107,50 but for only R2,50 more Nedbank’s Migoals Plus account offers significantly more added value and is regarded as the most cost-effective option in this segment."
This market demonstrates that considering only the cost is not always the best measure of value for individual consumers, as rewards programmes and additional benefits play a crucial role.
In the higher middle-class banking segment, for which 30 transactions per month are considered, added value and reward programmes play a bigger role than purely cost.
The most cost-effective account is Nedbank’s Migoals Premium account at R240 per month. FNB’s Fusion Premier and Absa’s Ultimate Plus are strong competitors, according to the report.
The higher middle-class market has become more competitive with few major price differences, which makes it easier for consumers to compare benefits like airport lounge access, linked credit cards, and 24-hour banking services.
"Clients are, however, encouraged to determine for themselves whether the extra benefits justify the higher costs," Du Buisson said.
"Each bank tries to meet different consumer needs, and consumers must decide which options best meet their needs"
IOL Business
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