Why are banks in Bulgaria raising fees again despite their record profits?

Some banks in Bulgaria are rasing service fees again. The increase in the size of fees for certain services is more than double. This is happening against the background of the introduction of accounts for basic operations without fees and commissions, in place since the beginning of the month.

The use of banking services has long been an integral part of our daily lives - for receiving salaries, shopping, saving or to send or receive money to family and friends. Along with this come the small fees, charges and commissions that can unpleasantly surprise us at the end of the month. As of last month, some of the country's banks are again anticipating an increase in the fees and charges for banking services - especially for cash transactions.

The main push up is in the fees of services for companies. Thus, one of the leading banks in Bulgaria increased the fee for a current account - from BGN 15 to BGN 20 per month. Companies will also pay more for bank statements. The commission for withdrawing money at the cash desk is being increased. Depositing money at the cash desk also goes up.

There is also an increase in fees and commissions for individuals. Thus, at one of the leading banks, withdrawing money at the cashier between 100 and 2000 BGN will now cost 6 BGN. At another bank, a cash withdrawal of up to BGN 2,000 will cost 0.70%. There is also a growth in cash withdrawals from cash over BGN 2,000. Some banks are also increasing the fee for depositing euros at the cash desk.

Another of the leading banks in Bulgaria will charge more for depositing money into a foreign account. Issuing an additional debit card is among the new charges of the banks. Charges are also being introduced for unblocking a blocked card or changing the withdrawal limit.

The rise in fees is not triggered by a slump in profits, experts are adamant. Banks' profit at the end of July was a record high of more than 2 billion BGN, and by the end of the year it could reach 3 billion BGN, financial consultant Stoyne Vassilev said.

According to the expert, Deyan Vassilev, there is pressure to digitalize banking services, and the drive of financial institutions is towards less and less use of human resources because of high salaries, as well as less and less use of cash.

Because of record low interest rates on loans, banks are looking for other ways to increase their revenues. Experts' advice is to pay more by card, withdraw less cash and choose the account that suits you best.

Another option is to switch to fintech solutions such as mobile apps, which often allow us to make transfers for free in Bulgaria and abroad. And the increase in fees and commissions happens around 1 September - the date when the so-called basic bank account comes into effect. With this account, people will be able to make basic payment transactions without fees and commissions within the country. According to financial experts, this account could be a good alternative for some of our compatriots.