Notes on Bank Fees in Australia – May 2000 List of tables

Table 1: Banks' Fees From The Household Sector

Table 2: Major Banks' Fees On Household Accounts

Table 3: Banks' Fees From Businesses

Table 4: Fees Paid by Small Business on a Loan of $100,000

Table 5: Estimated Costs of Fees on Deposits or Credit

Table 1: Banks' Fees From The Household Sector
$ Million
1997 1998 1999 Per cent
change in
1999
Fees from:
Deposits 180 215 260 21
Loans
– Housing 255 430 405 −6
– Other loans 285 270 355 31
Total 540 705 760 8
Transactions 165 330 430 30
Other services 275 305 325 7
Total households 1,160 1,555 1,775 14
Table 2: Major Banks' Fees On Household Accounts(a)
1998 1999 Latest
Deposit accounts
Account servicing ($ per month)(b) 4.00 4.00 5.00
Transaction fees (per transaction)(c)
Own bank's ATM 0.55 0.60 0.60
Other bank's ATM 1.05 1.30 1.40
EFTPOS 0.45 0.50 0.50
Cheques 0.65 0.75 0.75
Counter withdrawal 2.00 2.15 2.15
Telephone 0.30 0.35 0.35
Internet 0.20 0.30 0.30
ATM balance enquiry from own bank's ATM 0.15 0.00 0.00
Memo items:
Number of free transactions (monthly)(d) 8 8 8
Range of minimum balances required to waive account-servicing fee(e) 500 500–1,000 500–2,000
Housing loans ($)
Establishment fee 550 500 600
Monthly fee 5.25 5.25 5.25

(a) This table is based on public information on selected, widely-used bank accounts.
(b) Predominant charge in 1998 and 1999 for banks with such a charge. The latest observation is an average reading.
(c) Most fees are based on costs after the number of free transactions has been exceeded.
(d) For banks with such a facility. Within this figure, most banks allow fewer free over-the-counter transactions.
(e) For banks with such a feature. One bank does not have an account-servicing fee.

Sources: Cannex, banks' brochures and web sites.
Table 3: Banks' Fees From Businesses
$ Million
1997 1998 1999 Per cent
change in
1999
Fees from:
Small business
– Deposits 165 205 240 17
– Loans 500 625 655 5
– Bank bills 290 270 265 −2
Total 955 1,100 1,160 5
Large business
– Deposits 50 50 60 20
– Loans 355 345 415 20
– Bank bills 535 545 595 9
Total 940 940 1,070 14
Merchant services 570 730 935 28
Other services 390 460 490 7
Total business 2,855 3,230 3,655 13
Table 4: Fees Paid by Small Business on a Loan of $100,000
(Average Of Major Banks)
1997 1998 1999 Latest
Loan establishment fee ($) 925 890 740 740
Overdraft fee (% pa.) 1.10 1.05 0.95 0.95
Term Loan fee (% pa.) 0.35 0.40 0.45 0.45

Source: Reserve Bank estimates based on information provided by banks.

Table 5: Estimated Costs of Fees on Deposits or Credit
Level of Fees as a Per Cent of Deposits or Credit
1997 1998 1999
Households
Deposits
– Transaction fees 0.10 0.16 0.20
– Account-servicing and other 0.13 0.14 0.16
Total 0.23 0.30 0.36
Loans 0.28 0.32 0.31
Business
– Small business credit 1.65 1.74 1.65
– Large business credit 0.87 0.74 0.74
Average of business credit 1.12 1.04 1.00