ING Direct launches 'revolutionary' bank account

A new transaction account on offer from ING Direct could see bank account fees as a whole be reduced, it has been claimed.

The launch of a new ING Direct transaction account could have significant implications for the Australia banking sector as a whole, it has been suggested.

Entitled Orange Everyday, the bank account does not implement a monthly account fee or impose charges if consumers go into their overdraft.

Furthermore, its customers will not face a fee should they use a cash machine from a rival bank and with no exception charges it is the nation's first entirely fee-free transaction account, the Sunday Mail reports.

Such a move comes as ING Direct claim that many Australians face needlessly high charges and it is not necessary for banks to charge fees to make a profit.

"This will put enormous pressure on the other banks and could force charges down across the board," Christopher Zinn, of consumer group Choice, states.

Aussies on the search for competitive accounts may be interested to hear that UBank - National Australia Bank's direct banking division - recently launched an online saver account offering a 5.11 per cent rate of return.

Written by Kate Guthrie