Avoid these three sneaky bank fees

Why do banks charge fees? Officially, it’s for admin and operational reasons, although many times, it feels like they’ll sneak a cheeky charge in here and there because they’re counting on you being too busy or lazy to do anything about it. A few dollars here and there may not seem like so much, but after a while, fees can really start to add up.

RBA data shows that banks are making a pretty penny on fees. The latest figures show that banks made $1.59 billion from credit card fees (excluding commercial cards) in the 2024 financial year, up 42% from two years prior, and $745 million from transaction account fees, up 29% from two years prior.

If you’re sick of being slugged with fees, here are three of the most common ones–and what you can do to avoid them.

1. Account-keeping fees

Some banks will charge a monthly fee just to keep your account active, but will waive it if you meet certain conditions. For example, Commonwealth Bank, ANZ and Westpac all charge between $4-$6 a month in account-keeping fees, but will waive these for under-30s, those who deposit $2,000 a month, and in some cases-full time students. A $5 monthly fee may not seem like much, but that’s $60 per year right out of your savings and into the bank’s pocket.

How to avoid them: One way to avoid this fee is to make sure you meet the required minimum deposit each month. Some banks will also remove the monthly fee if you bundle your transaction account with a home loan–Commonwealth Bank and Westpac both offer this as an option, as do others including Auswide Bank, Bank Australia and Bank of Melbourne. If you’re already paying a home loan fee, then bundling could be a way to avoid monthly account keeping fees on top of it.

You could also consider switching to a bank that does not charge deposit fees. NAB is the only one of the big four banks that offers a no-fee account as standard, but a number of other banks, including Macquarie, Bankwest and ING, offer accounts with no monthly fees.

2. Late payment fees

If you’ve ever let a payment slip your mind, even by a day, your bank may have charged you a late payment fee. For example, ANZ, Commonwealth Bank and NAB generally charge a fee of $20 if a credit card payment is not made by the due date, while Westpac charges $15.

How to avoid them: It’s important to remember to pay your balance, for the sake of your wallet and your credit score. In this case, setting up a recurring payment to your credit card each month can help. It may also be helpful to double check if your contact details are up to date, and set up banking app notifications so you don’t miss billing notices or reminders.

If you’ve been hit with a fee, it may even be possible to get it waived by calling or emailing your bank and saying:

“I noticed a late fee on my latest statement. I have been a loyal customer of [Bank Name] for [number of] years and this is my first late payment. As I have already rectified this oversight and made the payment, I would like to ask if you would consider waiving my fee as a one-off courtesy?”

3. International transaction fees

International transaction fees don’t just apply when you use your card while travelling–banks can also apply them when you buy something from overseas. The standard international transaction fee is between 2% to 3.65%, based on the cards on Canstar’s database.

How to avoid them: A number of banks such as Macquarie, ING and Up offer cards with no international transaction fees. If you make a lot of purchases overseas, it might pay to compare your options and switch to a card without international transaction fees, as long as it suits your needs and budget.

If you’re travelling, it’s also important to let your bank know, to prevent your card getting locked, which could force you to rely on higher-fee payment options. Paying in local currency or using a prepaid travel money card are also options, although here, you’ll need to look out for currency conversion fees and ATM fees when withdrawing cash.