Big claim on Bendigo Bank’s controversial fee to access cash

A major Australian bank’s controversial fee which is set to slug customers $2.50 for needing assistance to access their own cash is the result of a lack of regulation, experts say.

Under the Bendigo Bank fee structure, customers will be charged a $2.50 fee on over-the-counter cash withdrawals.

According to a statement made by the bank on November 1, customers will face “a staff-assisted service fee of $2.50” for cash withdrawals completed over the counter in local branches.

Finance Sector Union (FSU) National Secretary Julia Angrisano told NewsWire the union supports minimum service standards for banks.

“The reason the Commonwealth Bank felt it could introduce a $3 fee for some customers and the Bendigo Bank a $2.50 fee is because there’s no regulation to stop them,” she said.

She added the fees also “serve a darker purpose”.

“Transaction fees, combined with branch closures and the removal of ATMs, are all designed to reduce the costs on banks, not to benefit customers,” she said.

“Banks want customers to access low cost methods of transaction and they don’t care that not all of their customers want to. Banks deny, or charge extra, for choice solely to boost their own profit.”

Meanwhile, 2GB host Mark Levy labelled the fee as a cash grab from another big bank.

“It’s all well and good for them to spin it as a net decrease on what customers are paying, but you’re still charging people $2.50 to walk into a bank and get your own money out. How is that fair?” Levy questioned.

Under the fee structure introduced late last year, Bendigo Bank has removed the monthly service fee of $6 on Bendigo Everyday Accounts and introduced a staff-assisted service fee of $2.50 for cash withdrawals completed over the counter in branches.

For transactions conducted at the Post Office, Bank@Post fees were also reduced from $4 to $2.50. Cash withdrawals from Bendigo Bank’s ATM network continue to be free of charge for all customers.

The move comes just weeks after Australia’s largest bank CBA changed its approach after it planned to introduce a $3 fee to withdraw cash from branches.

Levy drew comparisons between Commonwealth Bank and Bendigo Bank.

“We all kicked up a stink about Commonwealth Bank last year, but Bendigo Bank is doing the same thing,” he said.

Following national backlash, group executive retail banking services Angus Sullivan said the Commonwealth Bank would rethink how the changes were implemented and “pause” the change for some customers.

“We know that account changes are difficult, and especially at this time of year, and with so many Australians challenged with cost-of-living pressures, we’ve decided to announce a change in our approach,” he said.

However, Commonwealth Bank stopped short of removing the service fee.