 Banks cutting fees
NAB, Westpac and the Commonwealth Bank have all cut fees on bank accounts and mortgages, putting the pressure on ANZ to follow suit.
NAB and Westpac started the process of fee cost cutting last week. Now with the CBA following, ANZ is the only major bank not to have moved yet.
National Australia Bank recently removed its $30 overdrawn account fee on personal savings and personal transaction accounts, pleasing consumers and some politicians
ANZ chief executive Mike Smith said today he planned a bank-wide approach to cutting fees rather than just concentrating on small areas.
"It's going to be a matter of weeks, not years, it won't take that long," Mr Smith said.
"I want to get much more transparent around the fee structure. It's going to be much clearer what the charges are.
"When you go to park your car in a carpark, generally there's a sign outside with the fees so you know what you are paying for. You can't argue with it if you have seen the charges before hand."
Westpac was next, reducing some fees down from $45 to just $9. And then the Commonwealth bank moved.
The Commonwealth Bank announced it would reduce dishonour fees on business and personal accounts from $35 to just $5, and overdraft fees from $30 to $10. Late payments on home loans and personal loan accounts will also be cut from $45 to $25. All fees will change from October 1. This move is estimated to deliver a $135 million profit hit.
Commonwealth Bank said they had reviewed their fee structure and said that many of its accounts already had zero fees.
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