NATION Banking fees cost billions

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

New data released by the Reserve Bank of Australia this month 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, show 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. RateCity calculations found the average home loan customer was spending on av- erage 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 fee- free alternatives on offer,’’ she said.

RateCity data found home loan application fees can be up to $ 1580, while credit cards fees can reach $ 1200.

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