Transaction account fees going down

In 2010/11, fee income on households' deposit accounts totalled $1 billion, compared with $2.1 billion at the peak in 2007/08 according to data released yesterday by the Reserve Bank.

“This fall (in fee income) was largely a result of a decline in exception fees on transaction deposit accounts,” the RBA said.

Exception fees include charges for overdrawing your savings account by the tiniest amount, or for getting your monthly credit card payment in a day late.

Account servicing and transaction fees on deposit accounts have also been coming down as banks compete to attract deposits in the wake of the global financial crisis that had disrupted wholesale money markets.

Source: Adelaide Now