The Commonwealth Bank is planning to charge a $3 fee for cash withdrawals, which has been criticized by Financial Services Minister Stephen Jones as a terrible move, especially ahead of Christmas. Starting January 6, customers with a Complete Access account will be switched to a Smart Access account, which includes this withdrawal fee.
The bank claims this change is meant to improve banking experiences. They will replace the Complete Access account with the newer Smart Access account, although they didn’t specify how many customers will be affected.
Smart Access is the bank’s most popular everyday account. It has a $4 monthly fee, which can be waived if certain conditions are met, like depositing at least $2000 each month. However, this account also includes a $3 fee for customers withdrawing cash at bank branches, post offices, or by phone. The fee is waived only for customers under 18 or those who receive pensions due to age, disability, or military service.
Customers with a Complete Access account do not have to pay a withdrawal fee but pay a $6 monthly fee that can also be waived if certain conditions are met.
This change follows the recent financial issues faced by cash transport company Armaguard and a new government policy that ensures people can still pay with cash.
Customers can avoid the $3 fee in three ways:
- Withdraw cash from a CommBank ATM using a CommBank debit card.
- Use QR Cardless to make transactions without a card or PIN.
- Pay bills and transfer money through the CommBank app or NetBank.
The bank will inform affected customers before changing their accounts. Last year, Commonwealth Bank CEO Matt Comyn noted that providing cash costs the bank around $400 million yearly, or about $40 for each of its 10 million customers.
Other banks, like Bendigo and Adelaide Banks, have also started charging $2.50 for cash withdrawals at branches. The Finance Sector Union criticized the new fees, calling them a greedy move from a profitable bank, especially during a cost-of-living crisis, where $3 can be a significant amount for customers on low incomes or benefits.
Earlier this year, Armaguard secured a $50 million deal to stay operational for at least 12 months. They are Australia’s only distributor of banknotes and coins, raising concerns about the future of cash in the country. In November, the federal government introduced a policy to protect cash payments for essential goods, ensuring they can still be bought using physical money at supermarkets, pharmacies, and petrol stations.
