CABS charges epitomise Zimbabwe’s hostile investment climate

Inflation creator Gideon Gono and buster Hon Tendai Biti must address the theft of depositor funds by uninnovative banks in the country if they want to attract deposists from zimbabwe exiles.

Recently the coalition government hosted an investment conference where it appealed for foreign investors to consider joining it in efforts to resuscitate the country’s ailing economy.

This was immediately preceded by whirlwind mission by the Premier Morgan Tsvangirai wherein he took time off his pressing programme to meet with Zimbabweans in the diaspora and implored them to return back to their home country and join him in tackling the massive reconstruction programme faced by the coalition government.

From an individual point of view the decision to go back to Zimbabwe hinges on several factors not least among them the political climate, the economic environment and the availability of services that would support resettlement and economic welfare of the individual concerned.
A cursory glance of the banking system in the country will surely put off any intending Zimbabwean exile considering immediate return to his/her home country.
CABS is by far the largest building society in the country and enjoys over 60% of the individual savings market.
A visit to its website shows the lack of banking innovativeness exiles will have to put up with on returning to their home country.
Any funds they will repatriate to their home country will not be guaranteed any interest rate.
But what they will surely expect is a shocking array of money fleecing measures put in place by the Zimbabwe banking sector.
Detailed below are some of the charges they will expect from CABS and these mirror what the banking sector in the country has to offer or is it fleece from them.
FCA's - TRANSACTION & SERVICE FEES with effect from 13/05/09 New Rates
Transaction charges at the CABS Banking Halls (Tellers)
Transfers done at the Teller counter $0.15
Cheque Withdrawals $30.00
Cash Withdrawal - Easy Bank, Blue, icabs, $2.00
Cash Withdrawal - Gold $2.00
Cash Withdrawals above the maximum (maximum currently $200 per day) 1%
Minimum amount to open New Account $10.00
Minimum amount to open New Account - EasyBank $10.00
ZETSS or RTGS $0.25
Monthly Service Fee
Platinum $1.00
Gold, Blue, icabs, Easybank Accounts $1.00
Additional Service Charges
Overdrawn Accounts $5.00
Recalled Salaries $1.00
Lost /Faulty/Damanged Cards $2.50
Forgotten Pin $2.50
Returned Cheque/Debit Order TBA
Photocopies (per item) $1.00
Stop Payments TBA
Bill Payments $0.30
Account Statements (historical records max 2 pages) $1.00
Debit Orders TBA
Unpaid Debit Orders TBA
Old Mutual Deposits (per deposit) TBA
Pledges/Cessions TBA
Mis-post/Retrieval of funds $1.00
Paynet per transaction/per debit order TBA
Certificate Of Balance $1.00
Stop Orders TBA
Electronic Transaction charges at CABS Delivery Channels (POS, ATM, Internet Banking, Telebanking)
POS
Any POS purchase (incl. tax) $0.15
POS Cash Back $0.15
CABS EasyBank Clients (incl. tax) $0.15
ATM
ATM Cash Withdrawal (incl. tax) $1.00
CABS EasyBank Clients (incl. tax) $1.00
ATM Cash Withdrawal - Gold Clients (incl. Stamp Duty) $1.00
Buddy Re-charge TBA
CABS Internet Banking
Bill Payments $0.30
Internet RTGS $0.25
Telebanking
Telebanking (per transaction) TBA
Cellphone Services
Balance, Statement enquiry $0.25
Buddy Top-up Re-Charge (paid by Econet) 3%
Our Mortgage Fees with effect from 13/05/09
Arrear Charges
High Density TBA
Low Density TBA
Commercial/Industrial TBA
Other Mortgage Charges
Visits to sites - low density TBA
Visits to sites - high density TBA
Visit for property management TBA
Visit to sites on properties >$25 million TBA
Photocopies (title deeds/mortgage bonds) $1.00
Application Fee TBA
Valuation Fees
Residential Properties - Ordinary 1%
Residential Properties - Building 2%
Non-Residential Properties - Ordinary 2%
Non-Residential Properties - Building 3%
Re-Valuation Fees TBA
Dormant Fee
Service Fees on Collection of Title Deeds $25.00
MINIMUM BALANCES (CABS CARDS)
Gold Card $5.00
Gold Card (Pensioners) $5.00
Blue Card/Easy Bank/icabs $5.00
MINIMUM BALANCE (CABS PRODUCTS)
Interest Plus Account TBA
Term Deposit Account $100.00
Mortgages (Minimum Loan) $10 000.00
Mortgages (Minimum Installment) TBA
MINIMUMS ON CABS SERVICES
Debit Order TBA
Stop Order TBA
Min. Cheque Amount (Banking Halls) TBA
MINIMUM & MAXIMUM WITHDRAWALS
Minimum Withdrawal Amount $10.00
Maximum Withdrawal Amount $200.00

Those coming from the UK will have to forgo the Nationwide Building Society services partially listed here under which Zimbabwean institutions are refusing to adapt to their system.

It is really not worth it after years of losing money to these same institutions through hyper inflation.

Why do Zimbabwe banks find it proper to charge their customers for withdrawing their incomes which would have been deposited after government taxation?

If the withdrawal is made in a banking hall it will attract between US$2.00 and US$30.00 if a cheque withdrawal has to be made.

Assuming one makes 4 cash withdrawals and a cheque withdrawal per month he will be US$38.00 worse off than if he had not banked his wages with CABS.

And that is not all as the bank will still hit him with a US$1.00 monthly service fee. It is not clear what services these will be other than cost of depositing funds with the bank given that all withdrawals and payments through the bank attract separate transaction based instant charges.

But perhaps it is the charge for drawing above the daily maximum limit of US$200 that is nothing less than criminal at 1%of the excess amount.

These amounts will not be an extension of overdraft to the customer but will be out of actual amounts standing to the depositor’s credit at the time of withdrawal and it is beyond imagination why they should attract a mandatory 1% tax.

Take for example a person wishing to purchase a motor vehicle valued at US$2000 where the seller demands payment in cash.

The buyer will have to fork out and additional US$18 to the US$2 that the bank charges per transaction.

ATM charges of US$0.15 per transaction including tax are equally deplorable as the tax is tantamount to double taxation and the machines were bought and paid for by depositor funds to improve services delivery rather than increase depositor liabilities to the bank.

Point of sale charges should not be transferred to the depositors as they should be costs between the bank and its corporate clients that collect funds through this system.

The same argument extends to the use of the RTGS transfer system which should be a bank to bank transaction that does not pass expenses to the depositors.

And I wonder what justifies internet transaction charges as well as direct debits or stop orders, which are arranged between the bank and the corporate clients for a commission to the bank.

Finance Minister and the so called genius RBZ governor Gideon Gono must be taken to task over these unscrupulous charges levied by banks from unsuspecting depositors as they discourage depositors from the banks.

Banks must pay depositors interests not tax them for depositing funds with them.

Investors are attracted by return on investment and not costs of investing.



anyone who withdraws

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No wonder why the exiles in the UK heckled the Premier when he said all was well for their return to the country.

Not that he was politically out of step but he was not aware that the investment climate in the country is far from ideal for the exiles used to benefits from banking as opposed to taxation for banking with an institution.
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