Banks have greatly increased the fees for some of the most used services

Banks in our country are embarking on a new autumn wave of fee hikes. It has already become a regular practice for them to update their rates every two or three months, often raising the prices of the banking services most used by consumers.

From 18 October UniCredit Bulbank once again the commissions for opening and servicing current accounts, for withdrawing money from branches and ATMs, as well as for various transfers have been raised. The most surprising thing is that the commission for opening a checking account has quadrupled – to 8 BGN, from 2 BGN until recently. The monthly fees on the accounts linked to the bank’s debit card, on which customers receive their salary, are increasing – from BGN 1.80 to BGN 2.55 BGN. Withdrawing money from a Unicredit ATM costs 1 cent. The service for the poorest users – the payment account for basic operations – is also becoming more expensive. It is mainly open to retirees, socially weak or students – people who open a bank account for the first time and have only one, on which they carry out a minimum number of transactions. The monthly fee for this account has been increased from BGN 1.45 to BGN 2.44 and when depositing amounts, which until now were free, will now be charged BGN 0.85 and for amounts over BGN 3100 – 0.3 %.

From 18 October Unicredit has also increased the fees for cash withdrawals, from 0.50% and a minimum of 6 BGN, to 0.70% of the total amount withdrawn and a minimum of 10 BGN.

Another great bank – UBB, also announced that it will increase its rate from November 15. The most drastic increases the cost of checking your debit card balance, more than double. If this is done at the bank’s ATM, the commission jumps to 1 BGN to the current 40 cents. If the check is made through an ATM of another bank, it will already cost BGN 1.50, not BGN 0.60. The cost of withdrawing money from another bank’s ATM with the OBB debit card also increases by 10 cents to BGN 1.30.

Refuse collection paid for in UBB will now cost 5 BGN, not 4.50. However, if it is accompanied by issuing a bank debit card, it will be cheaper from 2.50 to 2 BGN. The bank is also increasing the fees for depositing and withdrawing money from an account. In addition, the fees for transfers to accounts of other banks and also for transfers from one UBB account to another are increased.

In early October Bank discount already made changes to the chat from the phone. The fee for the maintenance of frozen accounts was increased from BGN 5 to BGN 35, including the withdrawal of funds released from the freeze. Collateral assessment fees for home loan withdrawals have been increased. There will be an increase in fees if a debit card holder requests to change the withdrawal code or limit. So, for example, changing the cap data (limits and smoke code) after 7 November will cost 10 BGN instead of 5 BGN. We also propose a modification of part of the rates. So, for example, changing the cap data (limits and smoke code) after 7 November will cost 10 BGN instead of 5 BGN.

From 15 November the services of KVS Bank (formerly Raiffeisenbank), which now has the same owner along with UBB. It will be more expensive to withdraw up to BGN 2,000 in cash from citizens at the cashier of a bank office. Currently, the commission is 0.5% of the amount, but not lower than BGN 6. And for amounts above BGN 2,000, the commission is 0.7% higher than BGN 2,000. After the changes, regardless of the amount, the commission becomes 0.6%, but not less than BGN 6.

In parallel with the increase in fees by the end of the year, a more visible increase in interest rates on loans is also expected to begin, in reaction to the new policy of the European Central Bank. Some credit institutions in our country have already started an increase in interest rates, which are linked to the EURIBOR market index of the Eurozone, others have already announced an increase in mortgage rates for new customers.

In this context, the profit growth of the banking system in our country is setting records regardless of the economic challenges across Europe caused by the war in Ukraine, high energy prices and the looming recession. For the first eight months of the year, our country’s banks recorded a profit of 1.4 billion BGN, 56% more than the previous year. The main credit for this growth goes to commission income, which grew before interest income during the credit boom in the first half of the year.