Credit Unions beat the banks with lower fees

Less than 30 per cent of Australia’s credit union members pay any kind of transaction or account keeping fee. Recently ANZ & CBA announced fee reductions. ANZ’s move to lower transaction fees and introduce unlimited transactions is a welcome innovation from a major bank however it only serves to highlight that many smaller institutions are already offering similar if not better accounts and accompanying fee structures. Analysis by Credit Union Services Corporation’s (CUSCAL) of its two million-member database, which represents nearly 75 per cent of credit union members, also reveals that the average fee paid (where fees are applied) is only $2.13 per month. While credit unions all have different fee strategies the overriding philosophy is that members are rewarded for their loyalty to credit unions with lower fees. Furthermore, credit unions have specific education campaigns with their members to promote the wise use of accounts. These campaigns highlight ways to reduce any fees and charges. CUSCAL analysis indicates that regardless of these announcements, there is still a limit on transaction numbers, where most fees are sourced. CUSCAL also noted that that the imposition of a straight $5 monthly account fee per member would result in a 135 per cent increase in transaction fees, even taking into account no limit on transaction volumes. Compare transaction account fees here