Transaction account fees 'reduced by banks'

Transaction account fees are "well entrenched" for banks, according to one reporter.

The fees that banks put on a transaction account are now "well entrenched", according to one commentator.

John Kavanagh, writing for the Sydney Morning Herald, said recent months have seen an increase in fee-cutting.

He noted ING Direct's Orange Everyday account as focusing "as much on the fees as the features" and National Australia Bank's (NAB) abolishment of charging people overdrawn fees on its savings accounts.

NAB transaction accounts now have no monthly fees and Mr Kavanagh said the bank had "received plenty of kudos for its changes".

However, earlier this month it recorded a 2.7 per cent share decrease, which could come as bad news for people with NAB Bank Accounts, reports Reuters.

ANZ also reduced over-limit fees for customers on its on credit cards, but made an "unusual" move of charging one extra dollar a month on its main transaction account.

By Emma North