Jeddah: The Saudi Central Bank (SAMA) has released a new “Fees Guide for Financial Institutions’ Services” that will significantly reduce what customers pay for banking services. The guide replaces the old banking tariff and aims to make banking cheaper and more accessible across the Kingdom.

The changes take effect immediately and affect everything from car loans to credit card purchases. SAMA designed the new guide with three main goals: to help more people access banking services at fair prices, to make banks more transparent about fees, and to encourage digital banking through cheaper electronic transactions.

Financing Fees Cut in Half for Borrowers

The most significant change affects people taking out loans. Consumer and vehicle financing fees have been cut in half, dropping from 1% to 0.5% of the loan amount, or from 5,000 riyals to 2,500 riyals—whichever is lower. This means customers buying cars or taking personal loans will pay substantially less in administrative fees.

Real estate financing fees remain unchanged at 1% of the loan amount or 5,000 riyals, whichever is lower.

Card users will also see savings. International purchase fees are now set at 2% of the transaction amount. International cash withdrawals cost up to 3% of the amount, with a maximum of 25 riyals.

Lower Costs for Money Transfers

The domestic and international money transfers have also become much cheaper. Identifying a beneficiary for fund transfer and cancelling standing orders are completely free. Transfers within the same bank or between e-wallets within the same company also cost nothing.

For transfers within the Kingdom, customers pay only 0.5 riyals for amounts up to 2,500 riyals, and 1 riyal for amounts between 2,500 and 20,000 riyals. Larger domestic transfers exceeding 20,000 riyals cost 25 riyals at a branch or 7 riyals when done electronically for same-day delivery. If customers accept next-day delivery, the cost drops to 15 riyals at a branch or just 5 riyals electronically.

International transfers are more expensive at 75 riyals through a branch or 50 riyals electronically. Cancelling or changing an international transfer costs 25 riyals at a branch or 15 riyals online. Setting up a standing payment order costs 5 riyals. These fees clearly incentivize customers to use digital banking, with electronic transfers costing significantly less than branch transfers.

Many Banking Services Now Free

SAMA’s guide expands free banking services significantly. Customers can now open bank accounts and e-wallets at no cost. Cash deposits and withdrawals at ATMs are completely free. Card issuance and renewal carry no fees, and making purchases at shops within Saudi Arabia using cards is also free.

Banks must provide various important documents without charging customers. These include account statements for any period under one year, proof of debt, debt transfer letters, no liability certificates, clearance letters, and IBAN certificates. This expansion makes basic banking services accessible to all regardless of income level.

Banks Shift Strategy as Digital Banking Grows

SAMA’s guide encourages customers to use electronic transfers instead of visiting bank branches. Electronic transfers cost less than branch transfers, which should increase digital banking usage. For example, transferring money over 20,000 riyals costs only 5 riyals electronically but 15 riyals when done at a branch.

Despite lower fees, Saudi banks earned more money from fees in 2025. In the first nine months of the year, banks made 16.1 billion riyals from banking fees, a 17% increase from the same period in 2024, according to Al Iqtisadiya. Banking fees now make up 14% of banks’ total operating income.

However, banks cannot rely on fees to drive profits. The new guide means banks will need to adjust their business strategies. Instead of depending on fee income, banks must focus on larger lending volumes and digital efficiency to maintain profitability.

The fee reductions balance protection for customers with incentives for banks. Lower fees for essential services like financing and transfers help ordinary customers access banking. At the same time, lower digital transaction costs push customers toward electronic banking, which reduces costs for banks.

The move supports important government priorities of financial inclusion and digital transformation. By making banking cheaper and easier to access, SAMA is helping more people participate in the formal financial system. By encouraging digital banking, the central bank is accelerating the Kingdom’s broader digital transformation goals.