Are your banking fees leaving a dent in your wallet and giving you sleepless nights?
While banking terms or its jargon can often leave you puzzled and confused, optimising your banking fees should not. This week’s article provides tips to help you make sense of your fees and stretch each Loti. So, where do you start?
Download the pricing guide
First things first, you need to get a copy of your bank’s pricing guide because information is key. Published annually, this guide outlines the cost of each transaction or service and will help you stay on top of your finances and make decisions that suit your needs, lifestyle and budget.
Choose a suitable pricing model
Talking about a budget, the next is to choose a suitable pricing model that fits your lifestyle and budget. You can choose between the Bundled Pricing or Pay as You Use (PAYU) pricing model. What is the difference between the two?
The table below provides differences between the two options.
| Bundled pricing | Pay as You Use | |
| What is the offer? | Certain services are bundled into a basket that are ‘free’ for example, scheduled payments, some debit orders, swipes on specific ATMs, and cash withdrawals up to a certain limit. | You pay for services as you use or separately as you transact e.g. charge per withdrawal. The more you transact, the higher your fees will be. |
| Monthly account maintenance fee. | A monthly account maintenance fee is charged. | A monthly account maintenance fee is charged. |
Use your account responsibly
Depending on the pricing model you choose, avoid making frequent cash withdrawals of smaller amounts e.g. M100 every day. Instead, rather make one withdrawal to cater for all your needs. The account maintenance fee will also differ depending on the customer segmentation and pricing option you opted for. So, it is time to get a grip on your banking fees, spend wisely and make every Loti count. Likhomo!
