Backlash as greedy Aussie bank plans to charge $3 for customers to withdrawal their own money
Changes to transaction accounts during a cost-of-living crisis as the bank rakes in billions in profits.
Australia's largest bank, Commonwealth Bank, has come under fire after it announced it was introducing a $3 fee for customers withdrawing cash in-person at branches, post offices, or over the phone.
However, the banking giant today backpedalled on the shift, announcing it will pause the move after the controversial announcement sparked national fury.
Group Executive Retail Banking Services Angus Sullivan now suddenly claimed the bank will rethink how the changes were implemented.
"We know that account changes are difficult, and especially at this time of year and with so many Australians challenged with cost of living pressures, we’ve decided to announce a change in our approach,” he said.
"For our complete access customers, which is roughly 10 per cent of our 10 million odd customers, there are approximately 90 per cent of our complete access customers for whom the change that we announced yesterday would put them in a better or equal position to today.
"For those customers, we will continue with migrating them to the lower monthly account keeping fee bank account option.
"If that doesn’t work for customers, of course, they can be in contact with us and we can arrange an alternative solution for them.”
The charge was flagged to take effect from 6 January next year and would apply to customers being moved from "Complete Access" to the "Smart Access" transaction account unless they are under 18.
Previously, customers could make in-person withdrawals without incurring a fee. Commonwealth Bank says the change is part of a broader effort to "enhance its everyday banking services," which include features like BPAY, Apple Pay, and the ability to track bills in the banking app.
🚨 Backlash as greedy Aussie bank plans to charge $3 for customers to withdrawal their OWN money
— Avi Yemini (@OzraeliAvi) December 4, 2024
Hopefully there's a mass exodus from Commonwealth Bank other expect the other major banks and their grubby CEOs will follow suit.
Full story: https://t.co/H2MAVfgJTS pic.twitter.com/mlwRUkIoT8
"As part of our commitment to provide the best available banking experiences, we've reviewed our everyday accounts offering and will be replacing Complete Access with our newer transaction account, Smart Access," Commonwealth Bank claimed in a message to customers. "Smart Access is CommBank's most popular everyday account. It has all of the features that Complete Access does, including options like Apple Pay, BPAY® to track and pay bills, and shopping rewards."
Monthly account fees are also changing. While Complete Access accounts charged $6 per month, this fee was waived for customers depositing $2000 monthly or those under 30. The Smart Access accounts have a lower fee of $4, waived under the same conditions.
In the 2023 financial year, the bank's CEO, Matt Comyn, received a total remuneration of approximately $7.3 million. This package included a base salary of $2.5 million, a bonus of $4.7 million, and other income components.
For the 2024 financial year, Comyn's fixed remuneration was controversially raised to $2.85 million, marking a 14% increase from the previous year.
Commonwealth Bank is not alone in introducing fees for in-person banking. Bendigo Bank recently implemented a $2.50 fee for staff-assisted withdrawals at branches, alongside the removal of its $6 monthly service fee for Everyday Accounts.
"Importantly, these changes will generally result in a net reduction in fees paid by our customers," Bendigo Bank said, while also offering support to customers affected by increased charges.
Other major banks have also adopted similar fees. ANZ charges between 80 cents and $2.50 for staff-assisted transactions, while Westpac imposes a $3 fee for in-person withdrawals for business customers. NAB applies a $5 ATM fee for specific cardholders.
The shift reflects a contentious trend among Australian banks to force customers to use digital and self-service options over traditional in-person banking.
COMMENTS
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Bruce Atchison commented 2024-12-03 21:00:39 -0500I’m so glad public pressure forced this greedy bank to reverse their decision. Charging $3 for withdrawing cash is clearly a money grab. And it’s usually seniors withdrawing cash. Legal tender also has the benefit of curbing spending. It’s too easy to tap the debit card and part with money that way. But when you’re counting physical bank notes and coins, it makes parting with it more emotionally distressing. So using cash stops impulse buying or at least restricts it.
