Bank Fees May Reach $5

The latest news in the bank sector is news that banks may now be able to charge up to $5 per transaction when customers use another banks ATM. The news follows last week's announcement that the Reserve Bank of Australia will install new rules from March 3rd 2009 eliminating the charging of fees between banks for customers' use of each other's ATM's. Furthermore, bank institutions and ATM owners may now charge customers using their ATM's direct fees as long as the charge is shown before the withdrawal is completed.

To date ANZ, St George, NAB and Westpac have all announced they will begin charging additional ';disloyalty' fees with only the NAB offering a figure of 50 cents. Commonwealth Bank hasn't announced any plans regarding fee hikes or charges.

When the new rules were initially announced last week it was thought that only rural customers would be affected due to the lack of competition between banks in those areas but now the fees are expected to take effect nationwide.

In other news, Credit Union Australia will follow the Reserve Bank of Australia's lead and cut 100 basis points off its standard variable rate to 5.62 per cent.