Time to read : 4 Minutes

In the 2022-2023 financial year, Australians were charged a total of almost $3.4 billion in bank fees. While this represents only 5% of Aussie banks’ total revenue – and it’s only a small amount each time – these fees start to all add up, particularly as we deal with the rising cost of living.

And it increasingly feels like banks are looking at more ways to charge us simply for handling our money. CommBank recently came under fire after it announced some customers would be shifted into new accounts that came with a $3 fee for withdrawing cash in certain ways, including at bank branches. 

The plan to charge the withdrawal fee was canned after uproar, but as banks manage the changing ways we use our money, there are many other fees you should be aware of. 

Banks introducing new fees

CommBank’s attempted fee introduction wasn’t the only new fee on withdrawals banks introduced last year. Bendigo and Adelaide Bank brought a $2.50 fee in for customers looking to withdraw cash from branches in October. 

These new fees come as cash usage drops. Cash has been in decline for a while as more Australians are relying on card or online payments. RBA data shows that while cash accounted for 69% of transactions in 2007, by 2022 it was only 13%. It dropped below debit as the most popular payment option in 2019.

The federal government announced at the end of last year that it would require businesses to accept cash for essential items by 2026, but it’s likely cash will continue to decline in popularity. 

But, as banks continue to close branches and reduce the number of ATMs available, customers that do need or want to use cash are the ones paying the price for these new fees. Non-bank owned ATMs also often incur fees for their use.

What are the other common fees banks charge?

International travel was one of the biggest money spinners for banks over the last financial year, as these often come with foreign transaction fees. 

Consumers can also be hit with a surcharge for using their debit or credit card at an EFTPOS terminal, although the federal government is currently reviewing a ban on this practice. 

Other banking fees include:

Account keeping fees

This is an admin fee to maintain or keep your account running. The fees charged vary from bank to bank and can be waived for customers that meet certain criteria or conditions. 

One example is having a minimum monthly amount deposited into the account. While account keeping fees are common, not all account types have account keeping fees.  

Statement fees

With so much of our everyday activities done electronically these days, banks and other financial institutions may charge for paper statements. 

It’s understandable why banks want to switch to paperless statements – it’s good for the environment and it reduces postage fees. But it does make life a bit harder and more expensive for people who don’t use online banking. 

Loan fees

Taking on a loan will come with its own set of potential fees. These include:

• set up costs

• admin fees

• early termination fees

• late payment fees.

Tip: if you have more than one loan, you may be able to reduce loan fees and other loan charges by consolidating your loans.

Overdraft fees

An overdraft is when you take out or use more money than you have in your account. Some providers will charge you an overdraft fee if you spend more than what’s available in your account. 

Be aware: you may also be required to pay interest for the period of the overdraft. Setting up balance alerts can provide peace of mind to help you from going into overdraft. 

Specific product fees

There’s also a range of other fees on limited use accounts, credit cards and other banking products. These attract their own specific fees so while it may be tedious, always read the fine print when establishing new accounts or taking on other products.

How can you avoid bank fees?

Bank fees can be such a small amount each time that they’re easy to overlook, but here’s the thing: they add up. Particularly if you’re on a tight budget, what can seem like a couple of cents or dollars here and there can amount to hundreds of dollars by the end of the year.

Some bank fees are unavoidable, but it pays to do your research. 

• For things like international travel, many banks now offer a fee-free or low fee products for people who are willing to follow specific guidelines, like transferring money in advance or using specific ATMs. 

• When using a card at a retailer, consider swiping your card to pay via EFTPOS which has lower fees. The tap and go option is faster but the surcharge is also greater. Find out more on processing fees on card transactions. 

• As mentioned earlier, unless they’re important to you, making the environmentally friendly decision to opt out of paper statements can help you avoid these fees. Financial statements can be downloaded as PDFs, saved and stored on your device, in just a matter of minutes. That also means saving on shelf storage. 

• For loans or credit cards, it’s really important you understand the payment terms. The last thing you want is to be slapped with late fees with interest on top. If you’re not 100% confident you understand the terms, ask for clarification or examples of certain scenarios.  

Be aware: banks and financial institutions can update their terms from time-to-time so if you receive communication, familiarise yourself with the changes and how they can impact you. 

• When it comes to cash withdrawals, research where you can withdraw cash and if there are any monthly limits so you can dodge any fees. 

Top tip: not all banks charge ATM fees. If you regularly need to use an ATM, it could even be worth switching accounts. 

Be aware: independent ATMs – often found in pubs, clubs and shops – usually have some high fees, so it’s best to avoid these unless you’re absolutely desperate.

• Pensioners, people under 18, and low income earners can be entitled to certain financial products that are fee-free, so always speak to your provider if you’ve noticed a charge you’re not sure about.

Bottom line

When times are tough, every dollar counts and as the cost of groceries and utilities rise, everyone is looking for places to save. Some bank fees are inescapable, but with some planning and research you can avoid a big hit to the wallet. 

Fees are no longer an accepted part of banking, so if you’re being charged, shop around and see if you can get a better deal somewhere else. It does require being savvy reading all the T&Cs, but a bit of time reading the fine print could really help you cut out unnecessary fees.

Ultimately, think about how you actually use your money so you can match the right account or card for your situation and not be charged for features or products you don’t even need. 

Go deeper: 

• Processing fees: how much is it costing you to use your bank card?

• Federal government promises to crack down on card surcharges by 2026