Bank fees 'are costing families more than $50 a week'

Australian families are being hit with excessive bank fees that amount to more than $50 a week, new research has claimed.

A study by Australia Institute found that the total cost of fees on households of two people or more works out at an average of $53.20 per week, the Daily Telegraph reported.

In addition, the institute discovered that a worker on $50,000 a year, which is less than the national average wage of more than $60,000, is forced to contribute $28.85 a week towards bank profits.

David Richardson, senior research fellow at Australia Institute, said such costs were down to various bank actions including high interest rate rises on credit cards and home loans.

He also pointed to excessive account-keeping and overdraw fees. The comments could encourage Aussies to compare savings accounts in search of better deals.

The Australian Bankers Association (ABA) disputed the findings, claiming that much of the banks’ profits come from superannuation, insurance, institutional transactions and offshore activity.

Meanwhile, the ABA also argued last week that savers are benefiting from the rise in official interest rates thanks to high rates on term deposits.

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