Clearing air on bank fees

This is disingenuous.

The rate paid on savings accounts is so low (below one percent per annum) it is not worth mentioning.

Banks hold onethird of their deposits in these accounts, close to 40 per cent on non-interest-bearing accounts, and they charge the typical consumer more than seven per cent per annum on personal loans.

And they still feel entitled to charge monthly fees of as much as $25.

Up to the 1980s, banks did not charge a monthly fee for the maintenance of a savings account.

Customers paid per transaction on non-interest-bearing checking accounts with free entries based on the minimum balance.

Banks do incur a high cost to provide services such as ATMs, and it would be reasonable therefore to charge a small transaction fee, rather than for transactions at the teller, known to be less costly. However, an ATM actually pays for itself by reducing the number of tellers.

Regarding the comment by a joint select committee of Parliament that the total fees earned by banks are high, it is worthwhile to point out that fees charged to businesses may be included.

BENEDICT ANTHONY St James, PoS