Bank Fee Comparison in Australia (2026)

Updated March 2026 · 6 min read

Bank fees can quietly erode your savings if you are not paying attention. While many institutions now offer fee-free transaction accounts, fees still exist across a range of banking products. This guide covers the most common fees, how they compare between different types of institutions, and how to minimise or avoid them.

Common Types of Bank Fees

Monthly Account Keeping Fees

Some banks charge a monthly fee of $4 to $10 simply for holding an account. This fee is increasingly rare for everyday transaction accounts, especially among online-only banks and smaller ADIs. Many major banks waive the fee if you deposit a minimum amount each month (often $2,000 or more) or meet other conditions.

International Transaction Fees

When you make a purchase in a foreign currency, whether overseas or from an international online retailer, most cards charge an international transaction fee of 2% to 3% of the transaction amount. On $5,000 of annual overseas spending, that is $100 to $150 in fees. A growing number of cards and accounts waive this fee entirely.

ATM Fees

The major banks stopped charging direct ATM fees to non-customers in 2017. However, independent ATM operators in venues like convenience stores, pubs, and entertainment precincts may still charge $2 to $3 per withdrawal. Your own bank may also charge a fee for using non-network ATMs.

Overdraft and Overdrawn Fees

If your account balance drops below zero, you may be charged an overdrawn fee of $5 to $15 per occurrence. Some institutions charge daily until the balance is restored. Setting up low-balance alerts through your banking app is the simplest way to avoid this.

Paper Statement Fees

Requesting paper statements by mail can incur a fee of $1.50 to $3.00 per statement. Switching to electronic statements is both free and more secure.

Dishonour and Failed Payment Fees

If a direct debit or scheduled payment fails due to insufficient funds, the bank may charge a dishonour fee. These vary widely from $5 to $20 per occurrence.

Smaller ADIs vs Major Banks

The four major banks (which collectively hold the largest share of Australian deposits) have historically charged more fees across their product range. Smaller ADIs, credit unions, building societies, and digital banks tend to have fewer fees and simpler fee structures. However, major banks often provide a broader range of products, more branches, and more ATMs.

The right choice depends on what you value. If you primarily bank online and rarely need a branch, a smaller ADI or digital bank may save you hundreds of dollars per year in fees. If you need regular branch access or a full suite of business products, a major bank may be more practical despite the fees.

How to Minimise Bank Fees

Audit your current fees: Check your last 12 months of statements and add up every fee charged. Many people are surprised by the total.

Switch to fee-free accounts: Dozens of ADIs now offer transaction accounts with no monthly fees, no ATM fees (via the major ATM networks), and no international transaction fees.

Set up alerts: Use your banking app to set low-balance alerts and payment reminders to avoid overdraft and dishonour fees.

Go electronic: Switch all statements to electronic delivery to avoid paper statement fees.

Consolidate if practical: Some banks waive fees if you hold multiple products. However, do not stay with a bank solely for a fee waiver if a different institution offers a genuinely no-fee product.