Bank fees costing billions

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

New data released by the Reserve Bank of Australia found Australians are paying $4.41 billion a year in banking fees and among the highest charges including those 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 a massive $1.24 billion – a rise of $5 million on the previous year.

The average home loan customer spent almost $500 a year on banking fees, including $240 in mortgage fees and about $231 in credit card fees.