Sassa recipients warned: Grant money at risk as thousands switch to personal bank accounts

The Citizen

6 days ago

The committee warned that Sassa beneficiaries are seeing their grant values shrink due to rising bank fees.
Thousands of social grant recipients in the North West are abandoning their South African Social Security Agency (Sassa) cards in favour of personal bank accounts.
This comes as the portfolio committee on Health and Social Development in the North West Legislature raised alarm over the financial impact of bank service fees on vulnerable citizens.
During an oversight meeting with the Sassa and the Department of Social Development, the committee said that choosing personal bank accounts could unintentionally 'diminish the value of their grants'.
'These beneficiaries may not realise that they are losing money to transaction fees and service charges, funds that are meant to support their most basic needs,' said committee chairperson Karabo Magagane.
Thousands opt for banks amid card confusion
Sassa beneficiaries currently can choose to have their grants paid directly into their personal bank accounts or access them via the Sassa-linked Postbank card.
Sassa reported that 43 945 beneficiaries in the province have switched to receiving their monthly payments through private bank accounts, rather than using the Sassa gold cards or the newer Postbank black cards.
The migration to Postbank black cards followed a security breach affecting the gold cards, prompting the South African Reserve Bank (SARB) to initiate the card transition process.
While the initial deadline for the switch was 31 May 2025, that cut-off has now been scrapped, allowing beneficiaries to use either option.
'People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,' Magagane urged officials.
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Accessibility challenges and extra costs
The committee also expressed frustration over the limited number of Postbank conversion sites in the province, with only 12 currently operational.
According to Magagane, many elderly citizens are forced to travel long distances to reach these centres, which could be influencing the trend towards private bank accounts.
'Many of our elderly citizens live far from these centres […] this could be a driving factor behind the shift to personal bank accounts,' she said.
In addition to official bank charges, informal fees are also taking a toll.
The committee heard that some spaza shops charge R10 per cash withdrawal, further reducing the net amount received by grant recipients.
'This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,' said one committee member.
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Ongoing engagement promised
In response to the concerns, the committee committed to working closely with Sassa and Postbank to ensure beneficiaries are well-informed and supported.
'We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each,' Magagane said.
The committee is expected to reconvene in the coming weeks to evaluate progress and review plans to address the issues raised.
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