AUSTRALIANS are being urged to take a closer look at their bank accounts, with new research from the Australian Securities and Investments Commission (ASIC) revealing that many could be paying unnecessary fees.
According to ASIC’s latest report, Better and Beyond: Expanding Better Banking Outcomes to More Low-Income Australians, more than one million people on low incomes are using high-fee bank accounts, despite being eligible for low-fee alternatives.
In total, customers paid more than $93 million in fees that could have been avoided. These are funds that banks are now set to refund.
Low-fee basic accounts are designed to reduce financial strain for eligible customers. These accounts generally have no account-keeping fees, no minimum deposit requirements, and no overdraw or dishonour fees. People on low incomes or receiving government benefits are encouraged to ask their bank if they qualify, or consider switching if better options are available elsewhere.
When comparing bank accounts, ASIC advises checking for hidden costs such as branch or transaction fees, international charges, and access to ATMs or contactless payment options. Consumers are also reminded to stay alert for scams.
Being proactive, ASIC says, could mean keeping more money where it belongs … in your pocket.
