The South African Reserve Bank (SARB) says South Africans are paying R31 billion a year in banking fees just to deposit and withdraw their own cash. The figure comes from the central bank’s Cost of Cash Industry Report 2026, which was first reported by businesstech.co.za.
Deposit charges, fees levied when money is placed in a bank account, account for R13.3 billion, while withdrawal charges, fees applied when cash is taken out, total R17.7 billion. Together they make up the R31 billion that consumers spend on pure banking fees.
What the numbers mean for everyday users
When the report adds transport costs, taxi fares, fuel and other travel expenses incurred to reach ATMs or bank branches, the direct cost climbs to R43.5 billion. SARB estimates transport adds another R12.5 billion to the annual bill.
The biggest hidden expense is time. The study puts the value of time lost waiting in queues, travelling to cash points and processing transactions at R27.8 billion, or 31% of the total cash cost. This includes R19.5 billion for transaction and queuing time and R8.3 billion for travel time.
Businesses also feel the pinch. The report attributes R3.9 billion of the total cost to the extra handling that firms must do when dealing with physical money, R2.3 billion for informal traders and R1.6 billion for formal retailers. In addition, consumers forgo about R1.3 billion in potential interest by keeping cash instead of earning interest in an account.
For cash-dependent South Africans, especially those in rural areas or low-income households, the cost is more than a line-item. A case study from Soweto illustrated the mistrust many have of the banking system: a resident said they keep money in a “secret hiding place” because they fear transaction fees or debit orders will eat away at their balance.
The SARB figures show that more than 45% of the total cost of cash is tied to physical access and the time required to obtain it. The high fees and ancillary costs influence how people manage their money, pushing some to rely on cash despite the expense.
The central bank’s analysis puts the total annual expense of cash at R88.5 billion when both direct and indirect elements are added together, according to the Cost of Cash Industry Report 2026. Of that sum, withdrawal charges of R17.7 billion account for roughly 20 percent, while deposit charges of R13.3 billion represent about 15 percent, meaning fees alone cover more than a third of what consumers spend on cash. These figures sit alongside the previously highlighted R31 billion in pure banking fees, underscoring the sizeable financial burden borne by cash-using households.
Transport outlays form a sizeable slice of the cash cost picture, with SARB estimating that South Africans allocate an additional R12.5 billion to reach ATMs or bank branches. The amount reflects spending on taxi fares, fuel and other travel-related expenses, a burden that hits rural and low-income communities hardest. When combined with banking fees, the direct out-of-pocket cost climbs to R43.5 billion, which the report describes as 49 percent of the total cash expense, illustrating how distance from banking infrastructure inflates everyday costs.
Time lost while accessing cash emerges as the largest indirect component, valued at R27.8 billion and making up 31 percent of the total cash cost. This valuation splits into R19.5 billion for transaction and queuing time and R8.3 billion for travel time to cash points. By assigning a monetary figure to minutes spent in lines or on the road, the study captures a dimension of cost that is often invisible in traditional fee structures, highlighting how inefficiencies in cash access translate into a substantial economic drag.
Businesses also shoulder part of the cash burden, with the report assigning R3.9 billion to the extra handling required for physical money. Informal traders bear R2.3 billion of that amount, while formal retailers account for R1.6 billion, indicating that the cost is passed through to goods and services across the economy. These business-related expenses, roughly four percent of the total cash cost, become embedded in pricing, meaning that even consumers who primarily use electronic payments indirectly feel the impact of cash handling fees.
Holding cash instead of keeping money in an interest-bearing account carries an opportunity cost estimated at R1.3 billion per year. Although SARB describes this figure as relatively small, it remains notable because it quantifies the earnings foregone by cash-dependent households. The calculation assumes that the cash could earn prevailing interest rates if deposited, thereby providing a concrete monetary expression of the trade-off between liquidity and potential returns.
The methodology behind the Cost of Cash Industry Report involves aggregating fee data from banks, surveying transport expenditures, and applying a monetary value to time based on average wages and travel costs. SARB compiles these inputs to produce a comprehensive cost-of-cash model that can be updated annually. The next phase will see the central bank monitoring trends in fee structures and access patterns, with the aim of informing policy discussions around financial inclusion and the potential for fee reforms.
