Commonwealth_Bank
AFP

The Commonwealth Bank's announcement of changes to its transaction fees, including a AU$3 withdrawal charge, has sparked outrage among customers, with many saying they will close their accounts if the new charges take effect.

The bank announced Monday that its customers will switch from the Complete Access Account to the Smart Access Account as part of the modifications. Any withdrawals made from the new account in a branch, post office, or over the phone will be subject to a $3 fee from Jan. 6, News.com.au reported.

"We're getting in touch to let you know that after reviewing our transaction accounts that are no longer on sale, we have decided to close our Complete Access account. On or after 6 January 2025, your account will change to a Smart Access account," Commonwealth Bank told its customers.

Customers can pay digital bills via the app or use ATMs with their bank cards to avoid the new AU$3 fee. Monthly account costs will also be changed; customers who deposit $2000 or more each month or who are under 30 will not be charged AU$4 for the new Smart Access account.

"Our Smart Access account has a $3 assisted withdrawal fee. This is our main transaction account and the assisted withdrawal fees on that account have not changed," the bank said.

"We continue to offer waivers on assisted withdrawal fees for customers who meet certain criteria, including certain types of pension recipients and those under 18 years of age."

Commonwealth Bank decided to impose a AU$3 fee for in-person cash withdrawals following the disclosure of the company's astounding AU$410 million in cash services expenditures for the fiscal year ending June 2024.

A sizeable percentage of this sum -- roughly AU$350 million -- was devoted to keeping cash on hand at banks, ATMs, and other places. The action was probably an effort to persuade clients to switch to digital banking services and lower these high expenses.

Meanwhile, several people took to social media to express their frustration over the move.

"Literally no protection from predatory banking operations," a Reddit user said.

"If this does happen, I will be closing all of my accounts, so will my husband and daughter," another CAB customer added.

"It shouldn't be illegal, it should be socially unacceptable. I'm going to close my CBA account and move it elsewhere because of this. If enough people do the same they'll backtrack. There's no reason for this to be illegal, people just need to take action to stop giving these people money," another person wrote on social media.

Other significant Australian banks have also started charging different fees for their services. Here are a few instances: