Aussies win as banks axe ATM fee
THE most hated of all bank charges – the ATM fee – has been consigned to history in a $500 million-a-year win for consumers.
The catalyst was a shock move by the Commonwealth Bank, which made its 3400 ATMs fee-free for any user, regardless of their bank, from yesterday.
Westpac, ANZ and National Australia Bank have followed suit, with ANZ saying it will make the change early next month.
Before the other three big banks jumped on board, consumer group Choice’s spokesman Tom Godfrey said the CBA decision could trigger the death of the fee.
“Accessing your money from a bank account is an essential service that should be free for everyone, rather than an inconvenience with a penalty attached,” Mr Godfrey said.
“The move by the Commonwealth Bank to stop charging non-customers to withdraw money is a win for consumers and sends a clear message to other banks.”
Federal Treasurer Scott Morrison had also urged Westpac, ANZ and NAB to respond.
“I will always welcome positive initiatives from banks that put customers first, and this is one of them,” Mr Morrison said.
“So well done Commonwealth Bank. The ball is now in the court of CBA’s competitors to match them.”
Australians forked out about $500 million in fees in the past year for withdrawals from ATMs owned by institutions other than their own, News Corp analysis of RBA data has found.
Women and young adults are more likely to pay the charge rather than trek to their own bank, according to surveys by financial product comparison websites.
About 40% of the
50 million cash machine withdrawals a month have a charge attached.
CBA group executive of retail banking Matt Comyn said consumers were fed up with been stung by ATM fees. Research by other lenders has found cash machine charges are the most loathed of all bank fees.
“It’s very unpopular and I’m sure people will be happy that they no longer have to pay it and to have access to the largest ATM network in the country for free has to be a good thing,” Mr Comyn said.
“It’s hopefully a small but significant change and positive step that will impact all Australians.”
From Saturday, users of CBA ATMs were alerted withdrawals were free of charge.
The Commonwealth’s surprise move comes after a horror run of negative publicity, including scandals in its insurance and financial planning divisions.
It also faces court proceedings in which the Australian Transactions Reports and Analysis Centre alleges the bank failed to assess the risk of money laundering or terrorism financing via deposit machines.