Bank accounts to incur less charges for being overdrawn

Customers who hold bank accounts with Westpac and St George Bank could soon feel less financial pressure after the lenders joined National Australian Bank in taking action against fees for being overdrawn.

While the latter has opted to abolish its $30 charge, the other two have moved to reduce them.

Currently charging $40, Westpac revealed it is to cut its rate to $9 from October 1st.

Similarly, St George Bank – which can charge between $38 and $45 – will do the same.

Peter Hanlon is an executive for Westpac and explained the arrangement would benefit around five million customers.

"This includes account overdrawn fees, outward dishonour fees and credit card missed payment and over-the-limit fees," Mr Hanlon said.

Part of the fee is being retained to cover the costs incurred by the bank if its cheap credit cards or normal bank accounts customers fell into debt.

The news comes on the same day an ING study found Australians to be among the more positive of nine nationalities researched at in regards to outlook on the financial landscape.

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