Banking fees a real rip-off

BANKS are hitting customers with fees of up to $10 per month just to keep their account open.

Exclusive polling of 2000 Australians shows monthly account-keeping fees were the most despised fee for 20 per cent of respondents – second only to print your own concert ticket charges. Other loathsome fees included the added cost of paying by credit card.

Fees remain a cash cow for financial institutions, with the latest Reserve Bank of Australia data revealing ticket-clipping reaped $13 billion in 2017, up $450 million on the previous year. About $4.5 billion of this total was paid by households and the rest by businesses. Fees from credit cards were the biggest winner for banks.

Annual fees on credit cards in 2017 rose 7.3 per cent to an average of $147.

The RBA also found account-servicing fee income jumped, “with some banks reinstating annual fees for products where these fees had previously been waived”.

Financial comparison website Mozo’s spokeswoman Kirsty Lamont urged consumers who hate paying account fees “to take matters into your own hands”.

“Go get yourself an account where you can avoid them altogether,” she said.

“There are 64 accounts on the market that have no monthly account fees and no conditions attached, you don’t have to do anything to pay zero fees.”

Mozo analysis found the highest monthly accountkeeping fee was charged by National Australia Bank for its Classic Banking Account that has a platinum debit card attached.

It charges a $10 monthly account-keeping fee.

University student Mariah Black, 19, works casually as a waitress and pays $5 per month to keep her transaction account open and said she is looking to switch banks to avoid the charge.

“It all adds up. I only noticed recently about the fee when I read my monthly bank statement,” she said.

“It annoys me, I want to suss out changing because it annoys me, it’s a rip-off.”

NAB’s executive general manager of deposits and transaction services Shane Conway said the card offered extra bonuses for customers.

This included waiving foreign currency fees on international purchases and it offers seven complimentary insurances, including travel cover.

“We want to ensure our customers have the products and services that suit their individual needs,” Mr Conway said.

The Australian Securities and Investments Commission’s MoneySmart senior executive leader Laura Higgins also encourages people to take control of their finances and avoid fees whenever possible.

“If you’re sick of paying monthly account-keeping fees switch to an account that doesn’t charge them,” she said.

Mozo data found the average monthly account-keeping fee is about $5.30, but many accounts allow customers to avoid any charges if they could meet set criteria.