The average South African consumer could be saving up to 60 percent off their bank charges without switching debit orders or account payments, according to research released by ThinkMoney.co.za.

Since its inception ThinkMoney.co.za has consistently shown that the average South African could save over R1500 per year by switching bank accounts. Gareth Mountain, General Manager of Thinkmony.co.za says: "Although Thinkmoney.co.za encourages people to switch to more cost effective current accounts, South Africans continue their 'love affair' with the big banks."

User feedback shows that the primary reason for people not switching their bank account is the complexity of changing debit orders and account payments. But Thinkmoney.co.za research shows that there is a way of reducing your bank charges by 60 percent, without actually switching your debit orders and account payments.

1. Switch to a better pricing option ? save 20 percent

   This is really the first step in taking control of your bank charges. Some banks offer up to eight different pricing options on the same account, but many people are confused as to which is best for them.

   By simply inputting into a bank charge calculator how you use your bank account, you?ll be told how much each account would cost you.

   The average South African spends approximately R1750 on bank account charges per year, but this can be reduced to R1400 simply by selecting the most appropriate package.

2. Open up a dual account ? save 60 percent

   This process is really quite simple, but not something many people consider. The idea is to open up a second, low cost, high interest account to work in tandem with your existing account. Simply set up a debit order to transfer all of your remaining funds after salary and debit order payments into this new account and then use this account as your day-to-day account.

   Not only will you reduce your transactional banking cost, but you will also earn high interest rates on the money in your new account.

   Note: this will not work for all bank accounts. We?ve analysed the most popular bank accounts in South Africa (see table below). This strategy will provide a further 50 percent (or more) saving for most of the popular SA accounts and this is over and above the 20 percent saving outlined above!

   However, if you bank with FNB your savings will not be as great, and if you have a Nedbank Everyday account, this strategy will actual cost you more.

"Putting either of these strategies into action will ensure that SA consumers make the most of their current accounts and pay the lowest charges."

www.thinkmoney.co.za