Banking & Saving - Banks make over $1bn in fees for 2008

Australian's banks made more than $1 billion last year alone as a result of people exceeding credit limits, paying bills late and using through ATM charges and credit cards.

The banks have suggested that this figure could be cut by around 30% if people were more careful and organised with their finances.

according to a report by the Reserve Bank of Australia, almost 10% of customers deemed as being the worst for accumulating the most charges are guilty of giving banks $11.5 billion through fees and charges for 2008.

Reports have been made that the Treasurer Wayne Swan called upon banks to show be more lenient and show restraint.

"It's not hard to see why many Australians get angry with the banks. They have every right to be concerned if their bank is charging unreasonable fees," he said.

Family First Senator Steve Fielding dubbed the fees as a "rip-off".

"The excessive fees charged by the banks smack of sheer corporate greed and are all the more outrageous given the enormous financial assistance doled out by taxpayers to support them during the global economic crisis. It certainly hasn't been the thank you present the Australian taxpayers expected." he said.

The Australian Bankers Association (ABA) said that "simple changes in behaviour" would help people to avoid many bank fees.

ABA chief David Bell said: "By using your own bank's ATMs, ensuring accounts are not overdrawn and that your credit card is paid on time, money can be saved".

He went on to suggest that if people were to move to basic bank accounts that cut out any frills they could save on annual fees.

Senator Fielding said charging a $50 fee for minor mistakes was an easy way for banks to monetise from unsophisticated people.

The RBA Australia has said after finding these high figures after collecting the 2008 data for the first time, it will start tracking penalty fees. In 2008 alone, overall bank fees grew by 8%.

Written by Sam Gooch