Borrow
How sneaky fees could be costing you hundreds
As many as a quarter of Australians are being stung with unknown, unfair or incorrect banking fees, with the costs adding up during the COVID-19 pandemic, an expert has revealed.

How sneaky fees could be costing you hundreds
As many as a quarter of Australians are being stung with unknown, unfair or incorrect banking fees, with the costs adding up during the COVID-19 pandemic, an expert has revealed.

Survey data released by Canstar revealed Australian cardholders spend $876 per year or $73 a month on bank fees they might not even know they are paying for.
Effie Zahos, Canstar money expert, said it’s important to keep an eye on your account as small amounts can quickly add up.
“Whether it’s a $5 or $50 fee, always question your bank if you’re unsure as to what you’re being charged for. There are some fees that will be unavoidable, but for other fees, there’s no harm in querying them if it means you could be better off by saving some money,” Ms Zahos said.
The survey results showed younger Australians are more likely to see their bank account eroded by fees, with Millennials revealing they likely pay an average of $155 in bank fees each month, while the youngest group, Gen Z, pay $139.
“We’re going through a global pandemic, and a lot of people will be looking for ways to cut costs, so it’s surprising to see so many people let fees go unchallenged,” Ms Zahos said.
Bank fees you could be paying
Ms Zahos explained that while many believe digital banking comes fee-free, in reality it is likely to come at a cost.
With most consumers using cards over cash during the current pandemic, banks are cashing in with fees such as eftpos transactions seeing Australians hit with unknown fees.
Canstar revealed that 18 per cent of accounts charge a fee, with an average fee of $0.86 per transaction.
“If your bank charges you this fee and you make 20 purchases on your card each month, you could be unknowingly paying an average of $17.20 in eftpos transaction fees,” Ms Zahos said.
“There could also be more obscure fees if you’re doing things like cardless cash withdrawal at the ATM, counting coins at a bank branch or obtaining a bank cheque; it’s things like this where you need to query your bank on the costs.”
Canstar found that 37 per cent of bank accounts charge a monthly account-keeping fee, with 58 per cent waiving the fee provided a certain amount is put into the account each month. The average monthly deposit required to waive those fees is $1,832.
Among the more painful fees, 57 per cent of accounts will charge a fee if users accidentally overdraw on their account. The average overdraw fee is $12.98.
About the author

About the author


Banking
Big banks push for BNPL regulations
The success of consumer take-up and the ease of credit provided by the buy now, pay later sector have seen the major banks renew calls for tighter restrictions on their products, an inquiry heard. ...Read more

Banking
Citi to exit consumer banking in Australia
US investment bank Citigroup has announced that it is pursuing an exit from the Australian market after 36 years. ...Read more

Banking
Westpac faces civil proceedings
The corporate regulator has commenced civil penalty proceedings against Westpac alleging the big four bank used misleading and unfair sales of consumer credit insurance. ...Read more

Banking
CBA to pay $7m penalty for overcharged interest
The Commonwealth Bank of Australia has been ordered to pay a $7 million penalty for charging an interest rate on business overdraft accounts that was substantially higher than what customers were advi...Read more

Banking
CBA taken to court over banking fees
ASIC has commenced civil penalty proceedings against the Commonwealth Bank of Australia, alleging that it charged clients millions in monthly fees when it was not entitled to do so. ...Read more

Banking
Big 4 bank offers $10m in grants to flood-affected customers
A big four bank has launched a $10 million Flood Support Fund to provide grants to customers and businesses in flood-affected areas. ...Read more

Banking
Guide to NSW flood financial aid: From the banks to insurers
The banks are offering customers affected by the NSW floods loan repayment deferrals, among other forms of financial aid, while the Insurance Council of Australia has declared a catastrophe for much o...Read more

Banking
APRA drops big 4 money laundering case
APRA has followed ASIC in closing its investigation into Westpac over the AUSTRAC scandal, which led to the largest corporate fine in Australian history. ...Read more

Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

Banking
Big banks push for BNPL regulations
The success of consumer take-up and the ease of credit provided by the buy now, pay later sector have seen the major banks renew calls for tighter restrictions on their products, an inquiry heard. ...Read more

Banking
Citi to exit consumer banking in Australia
US investment bank Citigroup has announced that it is pursuing an exit from the Australian market after 36 years. ...Read more

Banking
Westpac faces civil proceedings
The corporate regulator has commenced civil penalty proceedings against Westpac alleging the big four bank used misleading and unfair sales of consumer credit insurance. ...Read more

Banking
CBA to pay $7m penalty for overcharged interest
The Commonwealth Bank of Australia has been ordered to pay a $7 million penalty for charging an interest rate on business overdraft accounts that was substantially higher than what customers were advi...Read more

Banking
CBA taken to court over banking fees
ASIC has commenced civil penalty proceedings against the Commonwealth Bank of Australia, alleging that it charged clients millions in monthly fees when it was not entitled to do so. ...Read more

Banking
Big 4 bank offers $10m in grants to flood-affected customers
A big four bank has launched a $10 million Flood Support Fund to provide grants to customers and businesses in flood-affected areas. ...Read more

Banking
Guide to NSW flood financial aid: From the banks to insurers
The banks are offering customers affected by the NSW floods loan repayment deferrals, among other forms of financial aid, while the Insurance Council of Australia has declared a catastrophe for much o...Read more

Banking
APRA drops big 4 money laundering case
APRA has followed ASIC in closing its investigation into Westpac over the AUSTRAC scandal, which led to the largest corporate fine in Australian history. ...Read more