When I withdraw cash in an ATM here, I pay SEK 40 for the privilege, and since carrying around huge wads of cash isn’t necessarily a good idea in SA, I decided to open a bank account.
As it turns out, South African don’t operate quite like the banks in Europe. A European bank usually gives you an account for next to nothing, charges you nothing for cash withdrawals, transfers to other banks in the country and similar. Instead, they make money by taking the money you put in your account, and lending it to other people at a higher interest than you get.
South African banks instead make their money by having charges for everything. Withdrawing cash carries a charge, as does transfers to other accounts, even between your own checking and savings accounts. They probably charge you for checking your hair using their branch office window as a mirror, too. Presumably they do this because Africans are so poor that they have no money the bank can lend to anyone else, nor are there any people eligible for a loan.
Stephanie has, however, found a bank which does not charge exorbitant fees for everything: Capitec. This bank is so lekker, in fact, that not only do they not charge fees for withdrawals in their own ATMs or at the register in Pick ‘n Pay supermarkets, they also give you amazing 10 % interest on regular accounts without withdrawal limits. In times like these, when a typical savings account gives you 0.0 % interest, it sounds too good to be true, doesn’t it?
Well, it is. First off, the bank doesn’t actually have any ATMs, except outside their single branch office in town, but that’s okay, since you can get the money in the supermarket. The explanation for the high interest rate is simple, their loan desk could more properly be called the racketeering department. Check out their affordable 28-60 % interest rates for loans.
But that’s not all, in fact, not even the part which bothers me. The part that bothers me is that they’re simply not a real bank. When I’d opened my account, I asked how I can transfer in money from my foreign accounts. Answer: I can’t. I’ll have to move money to an account in some real South African bank or other, then transfer from there to Capitec.
Round about this time, I began to understand how they operate behind the curtains. Imagine, if you will, a bucket full of money, and a bunch of people sitting around it with notepads. “R100 withdrawal for Mnr. Eliasson”, someone would shout, and then someone would scribble this on their notepad, as the messenger pulls out a wrinkly R100 note from the bucket and run to the ATM with it, where he’d slide it through a little slit. I imagine that at the end of the month, they’ll tally up all their hand-scribbled transactions and then get an account balance for each customer.

At any rate, I thought I’d simply go to an international ATM, withdraw a large amount of cash from my Swedish account, then bring this wad of banknotes to the Bucket and have them deposit it on my account. As it turns out, I can withdraw a maximum of R3000 at a time (which is paid out in the form of 30 * R100, by the way), which means that those SEK40 they charge is more than 1 % of the money (on top of their pricey bid-ask spread), and if I try to overdo it, the bank in Sweden will probably invalidate my card, thinking I’m being robbed.
So there I stood, in the dodgy little shopping centre down the street, with a thick roll of cash. I went to the Bucket to deposit the money immediately, and here insult is added to injury. The door was locked. It was around 14:00, and the door said they were open until 15:30. I could see customers sitting inside, waiting to be served, I could see a bundle of keys sticking out from the lock on the other side of the glass door, but I could not get in. The security guard who was hanging against a rail outside the window just shrugged when I asked if the bank would open again.
So I took my pile of money and put it in the Drawer at home. Probably about as safe as the Bucket, anyway.