Bank fee take goes up

Banks collected $22.6 billion in fees and charges from their customers in the year to June 30, up more than $2 billion from $20.5 billion in 2007. “The 10.4 per cent growth in fees and commissions was well below the growth in assets and deposits,” said analyst Mike Ebstein. In the three months to June, Australians had $1.41 trillion in their bank accounts, up from $1.15 trillion last year. $596.6 billion of that money is in everyday transaction accounts, typically earning zero interest. However there has been strong growth in term deposit accounts from $323.5 billion to $412.5 billion. Banks were forced to spend $5.5 billion covering bad debts in the year to June, nearly double the amount outlaid one year earlier.

Source: The Australian