Customers cautioned to check out bank fees

BANKING customers are throwing hundreds of dollars a year down the drain in unnecessary fees and are being urged to reassess their deals.

Data released by the Reserve Bank of Australia this month shows Australians are paying $4.41 billion a year in banking fees, with charges linked to home loans and credit cards among the highest.

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 a massive $1.24 billion – an increase of $5 million on the previous year.

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

The site’s spokeswoman, Sally Tindall, said Australians’ accumulation of more credit cards and fatter debts was 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 on offer,’’ she said.

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

Many everyday banking accounts are fee-free but some can slug customers as much as $35 a year.

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