Commonwealth Bank is already charging Australians to withdraw their own money over the counter, and this will not change despite a rate cut for a small group.
Australia’s largest bank was hit with outrage this week after announcing that customers on its Complete Access accounts would be moved to Smart Access accounts from January 6, including the $3 assisted withdrawal fee.
The announcement sparked a wave of backlash, with politicians joining ordinary Australians in labeling the bank “greedy”.
On Wednesday, CommBank executive Angus Sullivan said the bank would pause account switching for about 120,000 customers who would be worse off under the switch and consult with them for six months to move them to an account that better suits them. .
But according to the bank’s terms and conditions document dated November 24, the $3 fee for withdrawing cash from a branch, post office or by phone is already in effect for those who already have the Smart Access account and will not go to nowhere.
The assisted withdrawal fee does not apply to certain groups, including pensioners, those under 18 and those depositing $2,000 a month, but with CommBank having approximately 12 million Australian customers, there are still a large number of people who would benefit from the rate.
It also does not apply to CommBank ATM withdrawals, although the bank has removed more than 1,000 of them from its network in recent years.
But, while the use of cash is decreasing, there is still a significant portion that still uses it.
New withdrawal fees for Commonwealth Bank customers come into effect on January 6
Chief Executive Matt Comyn said last year that about 15 percent of point-of-sale transactions were in cash, up from more than 40 percent five years ago, although a growing percentage of customers are turning digital.
“Every week, customers transact more than $18 billion through the CommBank app, a 64 percent increase in just two years.”
He said CommBank’s 10 million customers were paying about $40 each to finance the $400 million expense to keep physical cash in circulation at its branches.
“Many of our customers do not use cash and these customers subsidize those who do,” Mr Comyn said.
Financial Services Minister Stephen Jones said the assisted withdrawal fee appeared to be punishing people who want to use physical money.
“This strikes me as a tax on Australians demanding the right to use their cash, and the government will not tolerate it,” he said.
CommBank customers also criticized the fee after it was announced this week.
‘If you have a Smart Access account, the new rates already appear in the app as part of our account. They better satisfy customers quickly,” one person said.
CommBank group retail banking services executive Angus Sullivan (pictured) said a $3 fee for withdrawing money in person would be suspended for some customers after intense backlash.
‘Oops. “People noticed someone taking $3 from the money jar – sorry Mr. CBA – that’s not yours,” said another.
‘Why doesn’t the government make this kind of thing illegal for banks? Something for the people, for once. Although they are probably pressured by them. The banks were never in contact,” added a third.
“He’ll pause for now and then slowly and quietly, like a thief in the night, he’ll bring it in quietly,” added a fourth.
‘It’s not good enough. Pausing means it will activate later when the reaction calms down. Smash this idea and stop discriminating against your customers.’
Shadow finance minister Jane Hume even went so far as to declare that she would close her CBA account after having had it since she was at university.
‘It’s ridiculous and customers will talk with their feet. There is no doubt about it. Including me actually. I have an account at the Commonwealth Bank. I’ve had it since I was in college. “I will close it because of this decision,” he said on Sunrise.
Mrs Hume branded the bank “greedy” and “out of touch”.
Housing Minister Clare O’Neil also criticized the fee, saying the government believed it was “unfair” to Australians who were already struggling before December 25.
“Everyone has had a bit of a tough year on the cost of living front and the last thing they need is a kick in the gut from the Commonwealth Bank just before Christmas,” he said.
Daily Mail Australia has contacted Commonwealth Bank for comment.