BSP is changing its Fees

Some of the following main retail service fees will increase effective 1st August 2009. Please call in at your branch for full details.

Applicable Conditions:

*Cash Handling Fee – Applies to both cash deposits and cash withdrawals over K5,000

*BSP Customer – A customer who uses BSP as their primary banker for all their banking needs.

*Non-BSP Customer – A customer who does not use BSP as their primary banker and who may have other major accounts with other banks in PNG.

*Electronic Transactions – These include ATM withdrawals (at any ATM including other banks and overseas), ATM Phone Top-Up, BSP Phone Banking Transfers, Internet Banking Transfers and SMS Banking Transfers

*SmartSaver – 1 free withdrawal per month, electronic deposits free, 2 free OTC deposits per month.

*Achiever – No free withdrawal, from February to November withdrawals attract a penalty fee of K50, electronic deposits free, 2 free OTC deposits per month

Agency Passbook – available only to customers who open and conduct accounts at a BSP Agency – Special fees apply.


Service Fees:

  • Purchase Bank Cheque – K25.00
  • Dishonor Fees (due to lack of funds, outward) – K60.00
  • Standing Order, New – K5.00
  • Standing Order, To BSP Account – K1.00
  • Standing Order, Transfer to Other Bank Account (Warrant) – K25.00
  • Special Answers – Same day clearance – BSP Cheques – K30.00
  • Special Answers – Other Bank Cheques (K100 if messenger delivery) – K50.00
  • Cash Handling Fee* – BSP Customer* (2% of cheque or cash deposit value greater than K5,000) – 2% of PGK
  • Cash Handling Fee* – Non BSP Customer* (5% of cheque or cash deposit value greater than K5,000) – 5% of PGK
  • Local Telegraphic Transfer – To Other BSP Branch – K30.00
  • Local Telegraphic Transfer – To Other Bank – K40.00
  • Duplicate Statement – per page – K10.00
  • Notice of Stop Payment – K15.00
  • Cheque Book – 50 Page – K10.00
  • Cheque Book – 200 Page – K30.00

International Fees:

  • Foreign Currency Draft – K60.00
  • Standard Outward Telegraphic Transfer – K50.00
  • Sale of Travellers Cheques – 3% (K50 minimum)


  • Replacement KunduCard – K10.00

18 thoughts on “BSP is changing its Fees

  1. Went in today and had my first painful bite of the new fees. 2% of my hard earned cash taken by the bank for ‘handling’ my money.

    Imagine if for example a small business had to clear a K20,000 cheque. That’s K400.00 gone to the bank, that’s like someones fortnight pay???

    Why does it have to be a percentage? How is it any harder to dealing with paperwork that’s worth K20,000 or K2 million. Its all just paperwork.

    And don’t they already charge a debit tax on our accounts??

  2. This is ridiculous!

    Why would BSP want to STEAL my hard earned K100 from a K5,000 transaction? K50 as a penalty for early withdrawals from Achievers accounts is way too harsh.

    Why would BSP want to STEAL from us?

    If you want to get square with your robbers, go find them at Bomana and do it up there.

  3. Yeah Solo, tell me how you go with that because I’ll be in. Should take me about a month to organise my finances to make a move.

    As I said, I don’t mind a flat fee, but a percentage is complete utter BULLSHIT!!!!

  4. Solo/Emmanuel,

    Come up with something and let us know. I will jump to change ships if there is a better alternative out there.

  5. Yeh Manu, I’ve already created a facebook group “Against BSP New Retail Fees” and the membership is now over 100 and increasing by every minute.

    I am thinking of putting together a petition to the BSP management, BPNG and ICCC and solicit signatures from concerned BSP customers. Still need a banking and financial expert to advise on the appropriate course of action…I can’t image how those fee increases would affect the struggling rural folks.

  6. Unbelievable. BSP should hang their head in shame. This is exactly the ideal time for a competitor to make a move to easily win market share in the banking industry.

    It seems that BSP have their head so far up their ass they’ve forgotten who has made them who they are – their customers. It’s all about the customers, and if their customers aren’t happy, they won’t be sticking around.

    This is just another example of the dictatorial spirit brewing among the “elite” of PNG – they’re so elite they’ve forgotten their roots.

    And you wonder why our people loot???

  7. Five Secrets Your Bank Doesn’t Want You to Know – by Laura Rowley
    Posted on Wednesday, August 5, 2009, 12:00AM

    Banks are squeezing customers with historically high fees and penalties, from overdraft charges to account service fees to new surcharges on foreign debit transactions.

    But the pressures that have prompted the fee war with consumers started well before the financial meltdown, according to Jo Preuninger, a former management consultant who spent more than a decade in the consumer banking arena.

    I asked Preuninger for a little history, as well as some of the tricks of the trade that banks would prefer to keep secret.

    Secret #1: For many banks, the most profitable customers aren’t the mass affluent — they’re “Joe Lunchbox.”

    In 1999, the Gramm-Leach-Bliley Act allowed banks, insurers and securities firms to merge, breaking down barriers that had been in place since the 1930s. Following the new law, “if you took all the (deposit) checks written for $10,000 and above, most were written to institutions such as Charles Schwab, Fidelity or Merrill Lynch,” says Preuninger. “They took the best customers. The banks were becoming more like Laundromats, where you put money in for a short period because you still needed to pay with a check or (get cash).”

    At the same time, loans provided little profit as interest rates remained relatively low, prompting banks to seek consistent, non-interest income. “The focus was on how banks could not only identify fees they could charge, it was how to do a better job of collecting their fees,” says Preuninger.

    Middle-income customers presented the greatest potential to harvest fees. “There’s certainly a customer segment that could be called ‘Joe Lunchbox,’ who expect to be nickeled and dimed,” says Preuninger. “They are managing money from paycheck to paycheck. It’s someone who would prefer to pay an overdraft fee to get their mortgage covered rather than get hit by a mortgage provider with a late fee and a ding on their credit score.”

    Last year, overdraft and insufficient-funds charges totaled nearly $35 billion and comprised about 90 percent of banks’ consumer-fee income, according to a study by the consulting firm Bretton Woods Inc. Three-quarters of banks automatically enroll consumers in their “overdraft protection” programs without formal permission, and more than half of banks manipulate the order in which checks are cleared to trigger multiple overdraft fees, according to a Federal Deposit Insurance Corporation study.

    “They are going to try to turn the best profit they can, which is why they post in the most attractive way they can while avoiding and minimizing legal exposure,” says Preuninger.

    Someone who overdraws a checking account a few times a year should choose a bank with a program that makes it easy (and free) to shift funds from savings to checking to protect against overdrafts.

    Secret #2: Banks hope frequent overdraft customers don’t understand the alternatives.

    The banks deemed overdraft protection to be a customer service convenience that provides an alternative to payday lenders, says Preuninger. And yet some of those customers might almost fare better with loan sharks. The Bretton Woods study found 80 percent of overdraft fees are incurred by 20 million households, who paid an average of $1,374 in overdraft fees.

    These customers should consider ditching traditional checking account in favor of a prepaid debit card, which typically cost $70 to $80 a year ($10 upfront with a $5 monthly fee). Users direct-deposit their paychecks onto the cards (the money is FDIC-insured) and can do point-of-sale transactions and pay bills online. There are no overdraft fees; the purchase is declined if the card is empty.

    Secret #3: Those helpful new customer set-up kits, designed to make it easy to switch banks, also try to make the account “sticky.”

    “I did a lot of work in customer attraction and retention,” says Preuninger. “The biggest barrier to new accounts was switching. There’s a higher tolerance; a bank may have a lot of long-term customers — that doesn’t mean they love (the service).”

    Most banks have a kit to assist customers in switching services. But do it yourself instead. Enter your regular bills in the bank’s online billpay site, rather than signing up with each biller’s website. If your new banking relationship goes sour, the account is more transportable. You won’t have to log into a dozen different biller sites and change the account and routing numbers.

    Secret #4: Long-term relationships matter.

    “Know what you want in the way of a bank and stay as long as you can because tenure does matter,” Preuninger says. “If you’ve been with a bank three to five years, they treat you differently than if you are there six months. If you direct-deposit your paycheck and have a (savings) relationship, they think of you differently than if you have free checking with $100 in it. Tenure and relationship does matter.”

    So if you incur the rare fee now and then, always call customer service and ask (politely) for it to be removed. Emphasize your long-term relationship with the bank and ask for a supervisor if the initial effort fails.

    Most customers aren’t profitable until they’ve been with a bank a few years because of the high cost of customer acquisition — sales compensation to branch managers, IT infrastructure, documentation and account setup. “It’s a long time before they break even, especially if they goose it with $100 to you to open the account,” Preuninger says.

    Secret #5: Banks want you to enjoy the “advantages” of paying with credit, debit, check and cash — because it will make you more likely to lose track of your money.

    “One of most dangerous things going on with consumers is they are not paying attention to the variety of ways they are paying. They are balancing money back and forth because it’s too hard to account for,” Preuninger says. “If you pay seven different ways, you’ve just added complexity to your life. Consumers shouldn’t say to the bank ‘you’re responsible to tell me what I’m doing with my money.'”

    But more banks are moving in that direction. PNC Bank, for instance, launched an account called Virtual Wallet that presents account information in calendar form, focused between today and the account holder’s next payday. A “danger day” appears on the calendar in red if the account is at risk of an overdraft. The user can either move bills later in the month, or shift money immediately from the savings portion of the account at no charge (the account does it automatically if the consumer doesn’t). Statements are only available online and the bank charges 50 cents per check for writing more than three a month.

    Best bet? Simplify. Get a free checking account with no fees and a low minimum balance requirement, pay major household bills online, and then stick to cash. You’ll think twice about purchases, and avoid getting caught in the widening web of bank fees.

  8. Emmanuel,

    Thanks for enlightening us on the bankers’ “tricks of the trade”.

    Can someone further enlighten me on this hypothectical scenario based on BSP’s new fees structure?

    Say I have K5,000 in IBD with BSP. On withdrawal, do I get my full K5,000 back or just K4,900? The difference being their 2% handling fees – as if they will have to sweat their guts to dig a hole and find it for me.

    I should still be entitled to recover the full amount of the principal I initially invested with them regardless of whatever happens to the interest. If I only recover K4,900 then how is this any different to the little raskol on the streets pinching the K100 from my wallet as I walk out of the bank?

  9. So got a new story from the green thief. So I send one of my staff into the bank to deposit and clear a cheque at BSP. They charge me K30 for it.

    Now the thing is I’m waiting in the car and I have my numbers at the back of the cheque, so because they want to verify the cheque and I’m sitting in the car outside and I’m obviously not in the office. They send my staff out to get me in the car to walk in and verify the cheque because they can’t call mobile phones from the bank.

    So WTF??? You charge me K30 again for doing nothing but a few strokes on a keyboard and signing some pieces of paper and then you ask me to waste my time by having to inconveniently enter the bank physically to clear the fuckin cheque.

    What am I paying the K30 paying for? Why BSP are you wasting my time by increasing the cost and inconvenience of banking with you? Why BSP can you not understand that obviously most business people and everyday people have mobile phones so what is so hard about making a K2.00 call to a mobile phone to justify on some level your stupid fuckin K30 clearance fee.

    So the tally this year, K470.00 has been taken off me by the ‘Green Thief’ just for banking there.

  10. Except for the single defence (on the papers recently) by BSP CEO over the fee increases, an overwhelming number of customers right around PNG have expressed their dismay and resounding disapproval, and disappointment.

    However the fee theft continuous unabated.
    This is really sickening! Real madness of hyper proportions, might I add.
    The monthly charges greatly favour the Bank’s minuscule so called “interests” that it pays to depositors.

    My online transactions records shows, the bank charges me K5.00 and upwards on a “monthly” basis for the accounts I hold. On the other hand, BSP pays me a paltry sum of K2.00, K3.17 etc on a “quarterly” basis. Certainly, my online banking transactions records wouldn’t lie. Is that correct BSP?

    Where’s the balance, BSP?
    It seems like the bank exists for its own sole interests and pays little or zero attention to the views of its customers.

    If you’re running into real serious financial troubles, then, let me give you an idea. Please have the courtesy to talk to IPBC who manages 25% of the National Government’s shares in BSP then use part of their interests to fulfil your requirements.

    The Government is already stealing from the tax payers (that mostly evaporate into thin air at the Vulupindi 10% house in Waigani).

    Please don’t rob us from all angles.

    It’s about time, someone does us some favour.

    Patriotic Nationalist
    Port Moresby

    P.S. This letter was sent to the Daily Papers, hope they print it in RED as it was written

  11. Just checked my online transactions and my service charge has increased from K3 (fixed rate) in June to K6.50 in July and now an exorbitant K10.60 in August. Wow! and that’s just for making one deposit over-the-counter and using EFTPOS and “my” bank’s own ATM.

    …recent developments, I’ve just completed my ANZ loan refinancing application and ANZ is just happy to refinance my BSP loan. Next process is transfering all my funds from BSP to ANZ.

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