Households slapped nearly $500 in bank fees annually

Aussie households are being stung $477 a year just to keep popular financial products such as bank accounts, credit cards and home loans active, according to a new RBA report.

The Banking Fees in Australia paper, revealed that last year alone banks pocketed $4.41 billion in fees - an increase of 1.5% from 2015.

However, the Mozo database shows that there’s really no reason to be paying through the nose for fees, as there are currently 69 fee free bank accounts, 28 zero annual fee credit cards and 31 home loans with no upfront or ongoing fees.

Mozo Director Kirsty Lamont, said it’s concerning to hear that Aussies are paying a high price for bank fees that can generally be avoided altogether.

“There are now dozens of no fee credit cards, bank accounts and home loans on the market which means it’s now entirely possible for savvy consumers to rid themselves of banking fees altogether.”

“Consumers prepared to shop around for the best fee free options will be rewarded with savings of hundreds of dollars a year. But you need to look beyond the big four banks in favour of online banks, mutuals and non-bank lenders, as they are generally much more competitive on the fee front than the big banks,” she added.

Tips to save money on bank fees for good

 - Check your bank statements. It’s possible you’re being slapped with fees you weren’t aware of, which is why you should take a couple of minutes to comb through all those monthly statements that come your way. And cancel any direct debits you no longer use (hint: that unused gym membership).

- Know your ATM network. When was the last time you were hit with a $2 ATM fee? These fees are a huge money drain and easily avoidable by signing up with an account with a generous ATM network (see offers in the table below).

- Use it or lose it. If you’re not squeezing the most out of your fancy rewards credit card to warrant its steep annual fee, ditch your provider in favour of a more competitive deal.

Bank account offers - last updated 20 August 2022

Search promoted bank accounts below or do a full Mozo database search . Advertiser disclosure
  • Choice
    account fee
    Payment Options
    interest rate
    $5.00$0 monthly account fee if you deposit min. $2,000 per month or are aged under 30.
    Apple, Pay, Google, Pay, Samsung, Pay, Fitbit, Pay, Garmin, Pay, Digital, Card
    0% p.a.

    $5 account fee waived when you deposit $2,000 each month (conditions apply). No account fee for customers under 30. Cardless cash feature. Apple, Google, Samsung Pay, Garmin, Fitbit and digital card pay. Partner discounts offered through Westpac App.

    Details
  • Everyday Options
    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    0.01% p.a.

    An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up 9 sub-accounts.

    Details
  • Glide Account
    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
    0% p.a.

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.

    Details
  • Transaction Account
    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    2.25% p.a.

    Earn 1.75% p.a. interest on all balances. No monthly account fees. Winner of a Mozo Experts Choice Australia's Best Bank 2022^.

    Details

^See information about the Mozo Experts Choice Bank Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.