There is no need to pay transaction account fees

Aussies are forking out hundreds of millions of dollars a year on transaction account fees despite the fact that 57 per cent of available accounts don't charge monthly account-keeping fees.

Australians spent an estimated $360.5 million on transaction account fees in 2011 including monthly fees and other costs incurred such as penalties for overdrawing.

Account switching was made easier from July 1 last year, allowing a customer's new financial institution to do all the work to move them from one bank to another.

Charges including monthly account-keeping fees vary between institutions, with the average charge $5 a month. It's common for banks to require a customer to deposit a certain amount each month so they are not charged fees.