Shifty bank account fees
Household expenditure on fees for banking products, such as bank accounts and credit cards, has fallen for the third consecutive year for consumers, however Australian businesses have not experienced the same fortune.
The 'Fees for Banking Services 2013 Report' an analysis by the Australian Bankers Association (ABA) has found that Australian household bank fees have fallen almost 22 percent or $1.12 billion in the last three years. In 2012 the average household spent around just $8.94 per a week on bank fees, compared to the $12 a week that was seen in 2008.
The largest decrease was recorded on transaction account fees, dropping by 43 percent or $808 million. Home loan fees saw the second largest drop by $163 million or 12 percent, while credit card fees saw a 6 percent drop of $83 million.
"There are a few reasons why households are paying less. Banks have reduced and abolished many fees, and customers are choosing free or lower-cost banking products," according to ABA chief executive, Steven Munchenberg.
Households saved around $13 million over the last year thanks to the 0.3 percent decline in bank fees but much like changing tides, while the fees go down in one area they are surely rising in another. Australian business have experienced a 6.9 percent increase in bank fees, driving the $460 million increase in fee revenue seen by the banks over the last year.
Households and businesses looking to reduce the fees on their bank accounts, credit cards and loans can compare banking products to find a better deal on Mozo.
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