RLC has found that many of these clients are incurring fees from their bank, often involving monthly account fees for a basic transaction account, or fees for cash withdrawals from non-aligned ATMs.
Typically ranging between $2.00 - $5.00, these fees may seem negligible, however they add up over time and can be substantial for clients who are struggling to make ends meet. RLC often encounters clients already struggling with managing a range of bills, being hit with late payment, penalty and dishonour fees.
RLC notes recent High Court and Federal decisions examining whether bank fees constitute ‘penalties’, in Andrews v ANZ and Paciocco v ANZ, as well as the recent initiation of a class action against Telstra for late payment fees. RLC welcomes the move towards improved consumer protections against unfair fees.
Assisting low-income clients to manage fees
Bank alliances
RLC encourages clients to withdraw money where possible from their own institutional ATMs, or ATMs that do not charge withdrawal fees through an alliance with their institution. RLC also advises clients to withdraw money from their aligned ATMs or affiliates, or through EFTPOS ‘cash-out’, particularly at large supermarkets that do not require a simultaneous purchase. Adopting these practical measures can save significant money over time.
RLC suggests that clients avoid independent ATMs, often found at service stations, convenience stores and pubs. These ATMs charge fees to all users, which can be as high as $5.00. However, it may be harder for clients to avoid using these ATMs in rural and remote areas, which are underserviced by banks.
Choosing the right bank account for your situation
Pensioner Accounts
Vulnerable clients are often eligible for a range of pensioner accounts with minimal fees. By switching to these accounts, clients are able to avoid monthly account keeping fees and exception fees (which can range from $5.00 - $25.00).
Concession Transaction Accounts
Banks are required to offer low or no fee accounts to eligible concession cardholders. Banks should offer these accounts as soon as they become aware of a concession entitlement.
Exception fees
Exception fees are disclosed in the account terms and conditions. Exception fees may be charged when there are insufficient funds available to cover a transaction, credit card payments are late, or credit card limits are exceeded.
The Big Four banks all have accounts with no exception fees. Some also provide discounted exception fees to low-income earners.
ANZ
ANZ Access Basic
- No exception fees
- No monthly account service fee
- Unlimited branch, ANZ ATM, Phone & Internet Banking and EFTPOS transactions
The ANZ Pensioner Advantage account offers similar benefits
- Those under 18, or over 60, full-time students, customers on a disability support pension, or mobility allowance from Centrelink can apply for their monthly service fee to be waived on an ANZ Access Advantage account
Commonwealth Bank
Streamline Basic
- No exception fees
- No monthly account service fee
- No inward dishonour fees
- No honour fee on Pensioner Security Accounts
- Unlimited free electronic transactions at CBA ATMs and EFTPOS in Australia, Telephone Banking and Online Banking
- Three free assisted withdrawals a month
NAB
Concession Card Account
- No exception fees
- No over limit fees on credit cards
Clear Banking
- Available to all customers
- No exception fees
Westpac
Westpac Choice
- No exception fees
- No monthly account service fee
- Must hold a current Pensioner Concession or Health Care Card
- Social security benefits must be paid into the account for the fee waiver to apply
- Unlimited transactions across Westpac branches, Westpac, St George, Bank SA and Bank of Melbourne ATMs, Online Banking, Telephone Banking and EFTPOS
Westpac also offers specialist accounts for under 21s, full-time tertiary students, 55+ and retired persons, and migrants and expats.
St George
Concession Account
- Must be a concession card holder
- No account service fee
- Unlimited transactions at branches, St George, BankSA, Bank of Melbourne and Westpac ATMs, Internet and Telephone banking, EFTPOS and Bank@Post
- Fees for transaction history requests and statements
St George also offers specialist accounts for students and retirees.
