HomeBusinessCommercial Banks Hike Service Charges

Commercial Banks Hike Service Charges

COMMERCIAL banks have increased service charges by between US$2 and US$7 per month for individuals, while corporates are being charged between US$8 and US$15 depending on the bank.


Individuals are also being charged between US$1 and US$4 for every transaction while corporates are charged up to US$10.

To transfer money to another account, banks charge between 0,75% and 5% of the amount involved.
Figures obtained by businessdigest this week show that commercial banks have increased their charges by an average of 5% since the first quarter of the year.
Individuals and corporates will now have to part with between US$30-60 a month in bank charges when they make transactions on their foreign currency accounts (FCAs).
Civil servants this week said they were earning US$95 as banks were deducting as much as US$5.
This week banks also advised their clients that the amount of cash that could be exported in person or in baggage had been reviewed from US$250 000 to US$10 000 on a no-questions asked basis. This threshold shall, however, have no bearing on the daily maximum cash withdrawal limit which is set at US$1,5 million. All foreign payments and withdrawals of more that US$1,5 million require prior exchange control approval.
To be issued with a draft/RMO, individuals and corporates are parting with between US$8 and US$14.
FCA inter—account transfers cost between US$1 and US$4 depending on the bank for both individuals and corporates.
Service charges for salary processing are between US$1 and US$3 per entry for manual salary payments.
Companies will be charged between US$7 and US$10 per payroll for late salary submissions.
Most banks have not set a charge for intermediated money transfer tax. Unclaimed salaries for other employees cost between US$4 and US$7.
Facility negotiation fees for corporates cost 5% of the value of the overdraft or loans.
Between US$5 and US$8 is being charged for stop orders. Accounts closed within six months are attracting a fee of between US$18 and US$25, while reactivation of a dormant account costs between US$20 and US$25.
Services for bonds guarantees, securities and indemnities and bills range from 5% and 10% of the amount at hand.
Charges for letters of guarantee, and guarantees are between 5% and 6% of the amount involved.
Telegraphic transfers cost between US$17-26 for both corporates and individuals. The same amount is being charged for deposits received by telegraphic transfers.
Individuals are either not being charged to maintain their accounts or are parting with anything below US$5 depending on the bank. Corporates are being charged between US$8 and US$15 per month for monthly account maintenance.

BY PAUL NYAKAZEYA

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