Bank Fees Hit SASSA Grants While MPs Push for Postbank as No-Fee Option
South African Social Security Agency (SASSA) grant recipients are increasingly confronting deductions on their monthly SASSA grant payments due to bank transaction fees. This issue has drawn the attention of Members of Parliament (MPs), who are urging the wider adoption of Postbank’s no-fee payment option to protect vulnerable beneficiaries.
Bank Fees Hit SASSA Grants While MPs Push for Postbank as No-Fee Option
Recent reports indicate that many grant beneficiaries, who receive their SASSA grant payments via personal bank accounts, are losing a portion of their funds to banking charges. These fees, though imposed by individual banks, significantly reduce the actual amount recipients receive, undermining the financial support intended to assist them.
| South African Banks | Charges on Social Grants |
|---|---|
| ABSA | R10 for withdrawals over R1,000 |
| Bank Zero | R2 per retail withdrawal |
| Capitec Bank | R9.50 per R1,000 at ATMs |
| Nedbank | R9.00 per R1,000 at ATMs |
| Postbank | No transaction fees at Postbank ATMs or partnered retailers |
| Standard Bank | R8 to R10 per R1,000 depending on ATM, plus a R5.95 monthly fee |
| TymeBank | R10 per R1,000 at ATMs |
Lately, in April 2025, we also witnessed the Postbank services troubles pushed 2 million SASSA beneficiaries to switch to other banks.
In reaction, the Parliamentary Portfolio Committee on Social Development has emphasised the importance of switching SASSA payments to Postbank accounts in official meeting on 28 may 2025.
Early April, SASSA urges grant holders to switch banks amid black card suspension due to concerns raised by the South African Reserve Bank (SARB) regarding Postbank’s compliance with banking standards.
Now the Members of Parliament (MPs) are encouraging the use of both the Postbank Black Card and the older SASSA Gold Card, which still offer fee-free withdrawals at major retail outlets such as Shoprite, Pick n Pay, Boxer, and Checkers, making them safer and more cost-effective options for SASSA beneficiaries.
Ms Nonkosi Mvana, Chairperson of the Committee, stressed the urgency of the matter: “Our social grants system is meant to provide relief, not financial strain. We must ensure beneficiaries are not unfairly charged for accessing their funds.”
Postbank has reiterated its commitment to providing accessible, no-cost banking services for grant recipients, highlighting the continue use of SASSA Gold Card with the suspension of 31 May deadline and the new Postbank Black Card as reliable tools for fee-free transactions.
Currently, Members of Parliament are encouraging SASSA grant beneficiaries to consider changing banking details from other banks to Postbank to avoid unnecessary fees. This move is seen as crucial in maintaining the full value of social grants and supporting South Africa’s most vulnerable citizens.
