Term deposit fees 'are coming down'

Charges attached to term deposits are starting to fall across Australia, as banks attempt to secure more customers.

Figures released as part of an annual Reserve Bank of Australia (RBA) survey have shown that financial institutions still clawed in $4 billion in fees last year, but this was down by $300 million on 2009-10, the Associated Press reports.

Although it is still an astronomical sum of money, it seems that things are heading in the right direction – at least from an account holder's point of view.

Earlier this week, Commonwealth Bank's fixed-income analyst Philip Brown told the Sydney Morning Herald that banks are willing to pay higher interest rates on term deposits than on other savings packages.

The RBA confirmed that lower exception fees were the main reason for the sharp fall in overall charges. These are issued when people overdraw their savings accounts or pay a credit card bill late.

Account servicing and transaction fees on deposit accounts have also been coming down, the central bank confirmed.

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