Fleeced on fees by banks

AUSTRALIANS are urged to reassess their banking deals and stop throwing hundreds of dollars a year down the drain in unnecessary fees.

Data released this month by the Reserve Bank found customers are paying $4.41 billion a year in banking fees, mostly linked to home loans and credit cards.

The data, analysed by financial comparison website RateCity, shows fees collected from credit cards totalled $1.56 billion — an increase of $48 million from 2015, while fees from home lending totalled $1.24 billion — an increase of $5 million.

RateCity calculations found the average home loan customer was spending almost $500 a year on fees, including $240 in mortgage fees and about $231 in credit card fees.

Spokeswoman Sally Tindall said Australians’ accumulation of more credit cards and bigger debts were resulting in more money being spent on fees.

“There’s no need for Australians to be laboured with fees on their credit cards, home loans and transaction accounts when there are a range of feefree alternatives,’’ she said.

“Some of these costs are because credit card annual fees are rising and also because people are taking on more credit cards.”

RateCity data found home loan application fees can be up to $1580, while credit cards fees can reach $1200.

But the Australian Bankers’ Association’s executive director of industry policy, Tony Pearson, said account numbers across banking products were growing but fees not increasing at the same rate.