ME Bank says we have lower fees

The decision by NAB to remove monthly account keeping fees on a few accounts is a small proportion of the total fees and commissions received by the big banks, such as NAB.

ME Bank’s fees and commissions as a percentage of operating income is still so much lower than for the big banks.

For the year ended June 2009, about 4 per cent of ME Bank’s income was derived from transactional fees. For the major banks, this percentage was between 17-20 per cent.

NAB’s decision on monthly account keeping fees shows the big banks are now under pressure to slash fees and charges to bring them into line with those charged by ME Bank.

ME Bank’s Head of Corporate Affairs, Tony Beck said NAB’s decision was a pale imitation of ME Bank’s long standing commitment to low cost banking.

Mr Beck said ME Bank had also paved the way for other banks by keeping its late payment fees (also known as penalty rates) at a minimum charging only the cost of administration.

Source: ME Bank