Commonwealth Bank will start charging customers using one of its popular transaction accounts a $3 fee for accessing money from a branch, drawing an angry response in a period marked by robust bank profits and a cost-of-living crunch.
Australia’s biggest bank announced that customers with a legacy “complete access” account would be shifted into a different product from 6 January, with a withdrawal fee “when you take money out at a branch, post office or by phone”.
CBA said in a statement on Tuesday affected customers could still access free cash withdrawals from its ATM network, while some, including those aged under 18, would also qualify for a fee waiver via the new product.
The bank couldn’t immediately quantify how many customers would be affected by having their account changed to a “smart access” transaction account. All up, CBA operated 11.2m retail transaction accounts at the end of last financial year, according to financial documents.
The financial services minister, Stephen Jones, said CBA needed to overturn the planned changes.
“This is a kick in the guts for ordinary Australians and the worst Christmas present imaginable. Commonwealth Bank has to rethink this terrible decision,” Jones said.
“This seems to me to be a tax on Australians who demand the right to use their cash, and the government won’t stand for it.”
The issue may draw attention to those bank customers who already pay “assisted withdrawal fees”, including those with smart access transaction accounts.
Australians typically use a transaction account for day-to-day banking, such as paying bills and receiving wages.
The CBA changes come at a time of intense political and public focus on living costs and growing angst about fees, including the high debit card fees bank customers are charged for accessing their own money.
Bank-owned ATM numbers were also down almost 60% since 2017, according to regulatory data. Many spots are now taken by third party-owned machines that typically charge about $3 a withdrawal unless a customer’s bank has arranged a waiver.
The number of bank branches across the country dropped by 230 last financial year and by 1,615 compared to five years ago, according to analysis by Canstar.
CBA is enjoying a period of prosperity, with its share price trading near record highs, up more than 50% over the past 12 months. It recently posted an elevated $9.8bn full-year cash profit.
While the government did not articulate if it could make CBA change its plans, the UK uses a new legislative instrument to ensure nearly everyone in Britain has close access to fee-free cash withdrawals.
