South Africa ATM Withdrawal Charges : Starting May 1, 2025, South Africans will see revised ATM withdrawal charges rolled out across all major banks. These changes follow regulatory adjustments and increased operational costs cited by financial institutions. While the new fees may appear minor at first glance, they could add up quickly for regular users. Whether you’re withdrawing from your own bank or using another bank’s ATM, understanding the updated ATM charges is crucial.
Why Are ATM Fees Changing in 2025?
Banks have cited several reasons for increasing ATM withdrawal fees:
- Rising cash handling and security costs
- Increased maintenance and technology upgrades
- Declining cash usage leading to lower ATM profitability
- A push toward digital and cardless transactions
This move is part of a broader financial strategy to balance ATM operational costs while encouraging the adoption of online and mobile banking.
Breakdown of New ATM Withdrawal Fees by Bank
Below is a comprehensive table showing the new ATM withdrawal charges effective May 1, 2025, for some of South Africa’s major banks:
Table 1: New ATM Withdrawal Fees – Own Bank ATMs
| Bank | Previous Fee (R) | New Fee (R) | % Increase | Free Withdrawals? | Monthly Free Limit |
|---|---|---|---|---|---|
| ABSA | 8.00 | 10.00 | 25% | No | N/A |
| Capitec | 6.50 | 8.50 | 30.7% | Yes | 1 per month |
| FNB | 7.00 | 9.50 | 35.7% | No | N/A |
| Nedbank | 7.00 | 10.00 | 42.8% | No | N/A |
| Standard Bank | 7.50 | 10.50 | 40% | No | N/A |
| TymeBank | 4.00 | 5.00 | 25% | Yes | 2 per month |
| African Bank | 5.50 | 6.50 | 18.1% | Yes | 2 per month |
Table 2: New ATM Withdrawal Fees – Other Bank ATMs
| Bank | Old Fee (R) | New Fee (R) | % Increase | Free Withdrawals? | Extra Charges |
|---|---|---|---|---|---|
| ABSA | 12.00 | 15.00 | 25% | No | Interbank fee applies |
| Capitec | 10.00 | 13.00 | 30% | No | Network usage fee |
| FNB | 11.00 | 14.50 | 31.8% | No | Interbank + VAT |
| Nedbank | 10.50 | 14.00 | 33.3% | No | Additional 1.5% of value |
| Standard Bank | 11.50 | 15.50 | 34.7% | No | + R2 handling fee |
| TymeBank | 9.00 | 11.50 | 27.7% | No | Linked network fees |
How These ATM Charges Affect You
The increase in ATM fees will impact several types of banking customers:
- Low-income earners who rely on cash for daily transactions
- Rural users with limited access to digital services
- Grant beneficiaries withdrawing funds monthly
- Small businesses withdrawing petty cash for operations
Key implications:
- Budgeting will become essential – multiple withdrawals can add up
- Digital alternatives like EFTs and mobile payments may become more attractive
- SASSA grant beneficiaries will need to be extra cautious with ATM usage
Tips to Avoid Extra ATM Charges
Here are some ways South Africans can reduce or avoid higher withdrawal fees:
- Use own bank ATMs whenever possible
- Switch to digital or cardless withdrawals using banking apps
- Withdraw larger amounts less frequently to avoid multiple charges
- Check your monthly bank statement for hidden withdrawal service fees
- Use retail cash withdrawal options at stores like Pick n Pay or Shoprite, which may be cheaper
Government and Regulatory Oversight
The South African Reserve Bank (SARB) has acknowledged the fee hikes and urged banks to ensure transparency and provide fee notices at ATMs before confirming transactions. The National Credit Regulator (NCR) has also requested banks to consider vulnerable populations, especially grant recipients and pensioners.
FAQs on New ATM Charges
Q1: When do the new ATM charges come into effect?
A: The new charges are effective from May 1, 2025, across all banks.
Q2: Are these charges the same across all ATMs?
A: No, fees vary depending on whether you use your bank’s ATM or another bank’s ATM.
Q3: How can I find out my bank’s specific charges?
A: Visit your bank’s official website or check in-app notifications under “Fees and Pricing” sections.
Q4: Are SASSA beneficiaries affected by the fee hike?
A: Yes. Although SASSA cardholders do not pay for withdrawals at SAPO branches, using private bank ATMs may now cost more.
Q5: What are alternatives to ATM withdrawals?
A: Digital banking, cash-back at stores, mobile money platforms, and debit card payments at retailers.
Contact Details for Department Queries
For concerns regarding excessive charges or social grants:
South African Reserve Bank (SARB)
Phone: 012 313 3911
Website: www.resbank.co.za
National Credit Regulator (NCR)
Phone: 0860 627 627
Website: www.ncr.org.za
South African Social Security Agency (SASSA)
Phone: 0800 60 10 11
Website: www.sassa.gov.za
While the new ATM withdrawal charges may seem modest, they can significantly impact monthly finances, especially for frequent users and lower-income individuals. As banks continue modernizing their infrastructure, users are encouraged to switch to digital options to save costs. If you’re concerned about rising banking fees, it’s essential to stay informed and choose services that best suit your budget and lifestyle.
