Banks charged $2 billion in fees
Friday February 13, 2009
Bank customers have paid over $2 billion more in the last financial year, $22.6 billion as compared to $20.48 billion the previous year. The increase has been attributed to banks following their own rate rises on mortgages, credit cards and personal loans.
It began in January last year when all major banks raised interest rates as a result of the global economic crisis. However the banks have not, typically speaking, been matching the Reserve Bank of Australia whenever rate cuts have been made.
In fact, some banks have kept some of the Reserve Bank's 100-basis point rate cuts in their profit margins.
Furthermore, banks customers have been paying more in bank fees with an overall record high of $1.4 billion made in the June quarter from Australian accounts simply on transaction and lending fees.
Despite these higher fees, more and more Australians are choosing to put their money into a bank instead of investing, with a 10.4 per cent growth in fees and commissions well below growth in assets and deposits.
It is important to note, however, that banks have recorded solid deposits account with lower interest rates in an attempt to encourage customers not to rely on the unpredictable funding markets.
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