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

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Last updated 25 July 2024 Important disclosures
  • Mozo Expert Choice Badge
    Orange Everyday

    $0.00

    Apple Pay, Google Wallet, PayID, PayTo

    0% p.a.

    The everyday bank account that could pay you for paying bills. Get 1% cashback on eligible utility bills (up to $100), $0 ING international transaction fees, and up to 5 rebated ATM withdrawals a month here or overseas (T&Cs apply) and no monthly fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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  • Everyday Global Account

    $0.00

    Apple Pay, Google Wallet

    0% p.a.

    Enjoy $0 monthly account fees and international fees, with no minimum deposit or balance requirements. Buy, hold and spend in 10 currencies (AUD included) and earn 2% cashback for purchases under $100 (T&C’s apply). Mozo's Experts Choice 2024 winner for Exceptional Everyday Account.^

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  • Everyday Options Account

    $0.00

    Apple Pay, Google Wallet, 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 to 9 sub-accounts.

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  • Glide Account

    $0.00

    Apple Pay, Google Wallet, 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.

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^See information about the Mozo Experts Choice Bank Account Awards

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