SASSA Grant Payments Now Face Bank Charges

SASSA grant payments now face bank charges, with an increasing number of beneficiaries across South Africa reporting unexpected deductions that reduce the actual value of their monthly grants. This development has raised concerns among government officials and advocacy groups, especially as more recipients switch to personal bank accounts to move away from the often problematic Postbank system.

SASSA Grant Payments Now Face Bank Charges

According to the latest update from the North West Legislature’s Portfolio Committee on Health and Social Development, over 43,900 beneficiaries have chosen to receive their grants through personal bank accounts instead of the SASSA Gold Card or the newer Postbank Black Card. This shift exposes recipients to monthly bank fees, ATM charges, and retail withdrawal costs, many of which were previously avoided under the Postbank system.

On 28 May 2025 (Wednesday), during an oversight meeting with SASSA and the Department of Social Development, Chairperson Hon. Karabo Magagane warned that using personal bank accounts could reduce the value of social grants. She said,

“These beneficiaries may not realise they are losing money to transaction fees and service charges, funds meant to support their most basic needs.”

The official committee also raised concerns over unethical withdrawal costs, with reports that local tuck shops are charging R10 for every R100 withdrawn. This means beneficiaries lose 10% of their grant payment instantly, which is unbearable for unemployed individuals relying on the SRD grant, poor families caring for children and relying on the child support grant, persons with disabilities needing a caregiver, and elderly pensioners depending on the SASSA old age grant.

Officials reaffirmed their commitment to educating the public and encouraged beneficiaries to review their payment methods. They advised considering options like the Postbank Black Card, which offers fee-free transactions and withdrawals at major retailers including Boxer, Pick n Pay, Shoprite, and Checkers.

“We will push for awareness campaigns, improved accessibility, and outreach to ensure every grant recipient understands their payment options,” Hon. Magagane added.

To change your bank payment option, you can use the SASSA Services Portal online. Here’s how to update your banking details for your June 2025 SASSA grant payments.

South African Banks Charges on Social Grant Payments in 2025

Currently, many SASSA grant beneficiaries in South Africa are affected by bank charges, with deductions varying between banks. These fees have steadily increased during recent months in 2025.

Capitec Bank: R9.50 per R1,000 at ATMs, R1.75 at retailers, R7 monthly account fee

TymeBank: R10 per R1,000 at ATMs, R3 at retailers, no monthly fee

Nedbank: R9.00 per R1,000 at ATMs, R2 at retailers

Standard Bank: R8–R10 per R1,000 depending on ATM, R5.95 monthly fee

ABSA: R10 for large withdrawals over R1,000, otherwise free under that

Bank Zero: R2 per retail withdrawal, no monthly fee

Postbank (SASSA Gold and Black Cards): Zero transaction fees at official partner retailers and Post Office ATMs

Important Note: For exact charges, contact your banks, but common deductions now include a hefty amount over the past few months in 2025.