Banks to cash in on withdrawals

Banks are set to make a tidy profit from new rules that allow them to charge customers from rival institutions that wish to take out money from their bank account from an ATM.

According to the Herald Sun, the new system is likely to net the banks around $200 million a year and has been met with strong criticism from consumer group Choice.

“The system will punish people who are prudent and check their balance before withdrawing money so that they do not incur penalty fees,” warned Elissa Freeman.

This is because the new rules allow banks to charge separately for cash withdrawals and bank account balance enquiries.

As such, Aussies could be hit with a $5 levy for checking their balance and taking out cash.

In a bid to avoid getting stung, urges people to think about switching to a fee-free bank account and looking out for other exemptions and discounts.

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