Commonwealth Bank has paused a $3 in-person cash withdrawal fee for some customers after backlash from Australians who vowed to close their accounts in protest.
Australia’s largest bank was blasted as ‘out of touch’ and ‘greedy’ over the decision to shift all customers with a legacy ‘Complete Access’ account to a ‘Smart Access’ account, which includes an ‘assisted withdrawal fee’.
The fee was to apply from January 6 for customers when they withdraw cash from tellers in bank branches, post offices or over the phone. It does not include withdrawals from ATMs and waivers apply to pensioners, those under 18 and those who deposit $2,000 a month.
CommBank group executive retail banking services Angus Sullivan said on Wednesday afternoon the migration to the new account would be paused for six months for customers who are ‘worse off with the new fee’.
He said the bank would then individually consult with those customers, which are about 10 per cent of its customer base, and move them to a new type of account that best suits their needs.
‘We acknowledge we haven’t got the communication right about this,’ Mr Sullivan said in a phone meeting with reporters about 12.15pm.
He said the bank had made the change for customers ‘more difficult than we should have’.
He added the switch would continue for customers who are better off on the new account.
It is understood CommBank group executive retail banking services Angus Sullivan (pictured) is reviewing whether to backtrack on the $3 assisted withdrawal fee
Customers were told their Complete Access Accounts would be migrated to Smart Access Accounts which come with the new fee from January 6
It comes hours after Anthony Albanese’s government called on the bank to drop the fee.
‘It doesn’t seem fair or appropriate and this is a huge bank making huge profits. Come on, guys. It’s Christmas. We don’t need this right now,’ housing minister Clare O’Neil said on Seven’s Sunrise.
‘This is not something the bank should be doing and we’re asking them to reconsider.’
The government recently announced proposed mandate for businesses like supermarkets, pharmacies and petrol stations that sell essential items to accept cash payments.
About 94 per cent of businesses accept cash, but this is down from 99 per cent before the Covid pandemic.
In August this year, CommBank said it was costing about $350million a year just to keep physical cash in its network and described it as a ‘challenging commercial model’.
However that did little to affect CBA’s bottom line, having made a $9.5 billion profit after tax in the 2023/24 financial year.
