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BANK customers can waste hundreds of dollars a year in fees if they don’t pay attention. Annual fees, ATM charges and currency conversion costs are among the niggling expenses that can easily sting unsuspecting customers.
Crown Money Management’s chief executive officer Scott Parry says “fees just chew into your cash flow”.
“People are so worried about interest but they really neglect the fees they are paying,” he says.
HOW YOU CAN GET STUNG 1. ANNUAL FEES
These are some of the most expensive charges to hit customers and are often associated with home loans and credit cards. New research commissioned by financial institution UBank found one in three Australians don’t know the charges associated with their home loan. There are many mortgage and credit card products that don’t have any annual fees, so if possible stick to these deals.
2. ACCOUNT-KEEPING FEES
They are a common charge – often around $5 to $10 a month – linked to day-to-day transaction accounts.
Financial comparison website RateCity’s spokeswoman Sally Tindall says it’s a cost that can easily be avoided if you know where to look.
“If you’ve got a fee coming up, call your bank and ask them to waive it particularly in this environment.”
3. LATE PAYMENT FEES
Tindall said these are the “Achilles heel” for many customers so set up automatic payments. “Make sure you have all your direct debit sorted so you don’t end up getting hit,” she says.
4. ATM FEES
In 2017 the big four banks ditched ATM charges which were about $2 every time a person withdrew cash from a machine that wasn’t connected to their primary bank. Some banks still charge customers ATM fees including independently-owned ATM operators, so if you do need to withdraw cash plan ahead and use a machine where you you don’t have to pay to withdraw.
5. CURRENCY CONVERSION FEES
These are some of the heftiest charges to hit customers and can sting hard. They can be charged not only when using your card overseas, but also buying goods from overseas websites.
They can be up to 3 per cent of the overall transaction costs, but more banks are rolling out fee-free options.