The Reserve Bank of Australia released new data this month and found that Australians are paying for $1 billion a year in banking fees. These fees are the higher charges that are linked to home loans and credit cards.
Property owners and credit card holders are throwing hundreds of dollars a year out the window in banking fees that are unnecessary. Banking customers are being urged to review the bank fees and charges they have one their credit cards and mortgages.
Rate City, a financial comparison website and released the data and found the fees collected from credit cards totalled $1.56 billion, which is an increase of 48 million from two years ago. Fees from home lending rose by $5 million from the previous year to reach a record $1.24 billion a year in bank fees.
Homeowners with bank mortgages are paying on average almost $500 per year in banking fees, of which $240 a year is in mortgage fees and $230 in credit card fees.
More money is being spent on fees because of the accumulation of credit cards and bigger debt on housing. Rate city spokesperson, Sally Kendall said, “There is no need for Australians to be labelled with fees on credit cards, home loans and transaction accounts when there are a range of fee-free alternatives on offer”, she commented to the Townsville Bulletin.
Home and application fees can be up to $1580 well credit card fees can reach $1200. The industry association representing Australian bankers identified the more banking products were being opened by account holders and that this was causing the growth in fees. Actual fees were not growing at the same rate the Association for Australian bankers observed.
Tips and guidelines
The Australian and Securities and Investments Commission (ASIC) website, Money Smart identifies excellent questions and guidelines for mortgage and credit card customers to reduce fees by the banks.
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