[platypus]

In the UK we get the idea that banking is free, but it's actually subsidised for everyone by the very large fees banks take when people have unauthorised overdrafts. There's legal pressure on the banks at the moment to stop doing this and the banks are saying they'll need to start charging people fees.

So I read this article today that seems to indicate that there's no free banking in Australia. Is this true? Will this new account that they're talking about really be the first free banking account in Australia? :confused:

Free Banking

MILLIONS of Australians will have access to completely free banking following the launch of the country's first fee-free transaction account.

The revolutionary "Orange Everyday" account, from ING Direct, will cover the fees for using rival banks' ATMs, giving customers free access to every cash machine in Australia.

There are no overdraft fees, no exception fees – even if you breach your account's limits – and no monthly account fee.

Experts say the account could revolutionise banking in Australia and may force the big four to follow suit.

http://www.news.com.au/couriermail/story/0,23739,25900355-3122,00.html

[PamInPerth]

I do hope this gives the other banks a 'shake up'.

[Cliff]

You get free banking with the Commonwealth Bank if you have a relationship balance (savings/mortgage/loans) total of over $50,000. This is common with most banks.

Main drawback with the ING orange account is the zero interest rate – but as interest rates are low anyway at the moment on transaction accounts, for those who would otherwise pay fees, it's a good deal.

[Thongs of Praise]

The good thing about the Aussie banks is they haven't needed govt. bailouts.

The bad thing is the fees.

Good on ING Direct. Competition for customers is a good thing.

I went to the ING website http://www.ingdirect.com.au/ looking for the free banking account, but there's nothing there yet - at least nothing I could find.

By way of comparison, here are the fees the big banks charge.

http://www.commbank.com.au/personal/accounts/smart-access/rates-fees/default.aspx

http://www.anz.com/aus/RateFee/default.asp#FTPDS

http://www.westpac.com.au/internet/publish.nsf/Content/PBTSET+fee+interest+comparison

http://www.nab.com.au/wps/wcm/connect/nab/nab/home/Personal_Finance/15/8/#sect1_1

[platypus]

Thanks for your comments. I was able to find the free account here (after a search).

http://www.orangeeveryday.ingdirect.com.au/ Unfortunately it plays a video with music automatically when you open the page. I wish sites wouldn't do that. I like to listen to my own music while surfing and the last thing I need is someone starting playing music on my computer without asking my permission.

A Better Link to the account is here http://home.ingdirect.com/products/products.asp?s=ElectricOrange

[chestnut]

HSBC has savings accounts that have no monthly fee, no EFTPOS charge, and no ATM charge PLUS they pay interest. Not much interest at the moment though - just 0.75% if your balance is over $5,000.

But they do have charges for branch visits and overdrafts etc.

[grumps]

HSBC has savings accounts that have no monthly fee, no EFTPOS charge, and no ATM charge PLUS they pay interest. Not much interest at the moment though - just 0.75% if your balance is over $5,000.

But they do have charges for branch visits and overdrafts etc.

Whats an EFTPOS charge please?

[Cliff]

EFTPOS is like a debit card linked straight to your current account. If you do not have free banking then you are charged every time you use the card to make a purchase, around 40/50c. It soon adds up!

Like a debit card you will have a PIN to key in when you make a purchase. The money is deducted immediately from your bank account. You can also use the card to withdraw money from ATM’s.

EFTPOS stands for - Electronic Funds Transfer at Point of Sale – and is widely used in Australia and New Zealand.

[ABCDiamond]

I have been in Australia for quite some years, and have always avoided banks that charge fees.

HSBC do not charge transaction or monthly fees. You can use your debit card at any HSBC or Westpac ATM, or post office, to get cash out for free.

You can also get cash out at the supermarkets, for free on almost any debit card in the country. You have heard the MacDonalds saying: "would you like fries with that" ? well, our supermarkets, once you have finished, say something like: "would you like some cash with that ? " So, spend $40, ask for $300 in cash and your card is charged $340. Simple :)

Most banks allow under 18 to have fee free transaction accounts.
Some banks allow those getting government benefits "Child benefit etc" to also have fee free accounts.

Fee free accounts are available to most people with mortgages, if you ask.

This country actually has many hidden things, that need to be asked for.


BUT, you need to watch out. I was reading one banks offering today, and thought excellent, free this, free that, everything free... till the last line... all this free for only $395 per year.....:D

[ABCDiamond]

HSBC has savings accounts that have no monthly fee, no EFTPOS charge, and no ATM charge PLUS they pay interest. Not much interest at the moment though - just 0.75% if your balance is over $5,000.
They have opened a new account recently, which you can have with the normal one, but with a much higher interest rate.

[Cliff]

Although there are some free banking acounts out there, the average wage Australian is still paying a fortune in bank fees:

"Australian families are paying more than $50 a week each in bank fees and low-paid workers are ploughing almost $30 a week into bank profits. Bank workers have also accused their bosses of pressuring them to push debt and credit on to consumers. An analysis by the Australia Institute has found the total burden of fees on households of two people or more averages out to $53.20 per week."

http://www.couriermail.com.au/money/money-matters/aussie-family-households-carrying-burden-of-bank-fees-profits/story-fn3hskur-1225852462957

[ABCDiamond]

Although there are some free banking acounts out there, the average wage Australian is still paying a fortune in bank fees:

"Australian families are paying more than $50 a week each in bank fees and low-paid workers are ploughing almost $30 a week into bank profits. Bank workers have also accused their bosses of pressuring them to push debt and credit on to consumers. An analysis by the Australia Institute has found the total burden of fees on households of two people or more averages out to $53.20 per week."

http://www.couriermail.com.au/money/money-matters/aussie-family-households-carrying-burden-of-bank-fees-profits/story-fn3hskur-1225852462957

I saw that on the TV, and thought it sounded way too high, till they said this bit: "Higher than necessary interest rates on credit cards, mortgages and so on."

That $50 pw includes what they feel is higher interest rates than required. Not exactly bank fees, in the way that we think of them, but still a high cost for some people.

[Cliff]

I saw that on the TV, and thought it sounded way too high, till they said this bit: "Higher than necessary interest rates on credit cards, mortgages and so on."

That $50 pw includes what they feel is higher interest rates than required. Not exactly bank fees, in the way that we think of them, but still a high cost for some people.

Yes, ABCDiamond is right, it's good to be reminded of how much you can lose out if you are paying a higher interest rate than necessary on your loans. $50 a week is far better in my pocket than in the banks coffers.

[ABCDiamond]

6.09% is the best standard mortgage rate that I have seen recently, excluding the honeymoon rates of course.

And for Credit Cards:
mecu - Low Rate Visa CreditCard 10.24%
BankWest - Lite MasterCard 10.75%