Commonwealth Bank to slug customers $3 ‘assisted withdrawal fee’ when they visit branch, or take out cash over the phone

Millions of loyal customers of Australia’s biggest bank are set to be slugged a $3 fee when they make a withdrawal – in a move that has sparked nationwide outrage. Have your say in our poll.

Millions of loyal customers of Australia’s biggest bank are set to be slugged a $3 fee when they make a withdrawal – in a move that has sparked nationwide outrage.

Commonwealth Bank announced on Tuesday that millions of customers facing a forced transition over to its “Smart Access Account” would be hit with a $3 assisted withdrawal fee every time they want to take out cash at a branch, post office or over the phone.

Commonwealth Bank issued the notice to a large number of its 17 million account holders, after announcing it would close its “Complete Access Account” and move customers to its “Smart Access Account” – which will also impose a $4 monthly account fee.

A Commonwealth Bank representative said there would be no change to ATM withdrawals, which remain free for customers.

Commonwealth Bank will impose a new withdrawal fee to customers in store and over the phone. Britta Campion / The Australian

The notice to customers said the “assisted withdrawal fee” would not be imposed “if you are under the age or 18, or you are reliant on over the counter services because of a disability”.

Last month, Commonwealth Bank revealed it had posted a $2.5 billion profit in the first quarter of the financial year.

The Daily Telegraph understands Commonwealth Bank no longer sells its “complete access account”, with customers being streamlined onto the “Smart Access” which incurs a lesser monthly fee.

Commonwealth Bank data suggests 80 per cent of customers do not use “assisted withdrawal”.

Shoppers on mobile phones walk past the Commonwealth Bank Branch at the Rundle Mall Adelaide, South Australia. Picture NCA NewsWire / Emma Brasier.

“CBA customers currently holding our Complete Access account, which is no longer offered, will move to a Smart Access account from January 2025,” the CBA spokeswoman said. “The monthly account fee for the Smart Access account is currently $2 less than the Complete Access account and both accounts offer similar features.
“Waivers apply to these monthly account fees, including where a customer has deposits of at least $2,000 per month.”

Financial Services Minister Stephen Jones told The Telegraph the move by Australia’s leading bank was a “kick in the guts” for loyal customers and directly appealed to the bank to consider reversing the move.

“I urge the Commonwealth Bank to reconsider their decision – this is the worst Christmas present ever and a slap in the face to loyal customers,” he said.

“Let me speak directly to them now: they’ve got to reconsider this bad decision.”

Mr Jones said regional communities would be the most impacted by the new charges.

“This is outrageous – it’s an attack on the use of cash and it’ll hit people in regional areas hardest,” he said.

“I had to look at this twice. I thought it was a joke – it’s a sick joke.”

He also criticised the bank introducing the charges as the government pursues banning credit card surcharges and introducing a levy to promote keeping regional branches open.

“We can’t have banks respond by jacking up the prices on a basic savings account which will hit the poorest people the hardest,” he said.

Meanwhile, shadow financial services spokesman Luke Howarth said he would write to the bank urging them to reconsider their decision.

“I don’t think people should have to pay a fee to get their own cash out of their own savings accounts,” he said. “I think it’s un-Australian and not right.”

Meanwhile, Seniors Minister Jodie Harrison criticised CommBank’s decision in the midst of a cost-of-living crisis.

”It’s disappointing that Commonwealth Bank has made this decision which will disproportionately affect senior citizens, and I would urge them to reconsider.”

The move sparked outrage online, with Graham Rowan questioning why CommBank wanted to charge “a fee” for withdrawals for customers in store.

Meanwhile, Darren Humphris said “these banks make billions from using our money and our debt”.

“We need [an] alternative system,” he said.

Another said the move would result in the loss of customers.

While Richie George posted that “there is absolutely no need to charge customers for cash withdraws from their own bank, this is to discentives the use of cash plain and simple.”

The Australian Banking Association refused to comment.

What readers say

The move attracted comments from hundreds of exasperated users, who vented their frustrations online.

“And that is why my wife just ditched her CommBank credit card,” one user said.

“Yet another grab for cash usually from the people who least afford it of simple don’t have access to the technology,” another commented.

Shoppers on mobile phones walk past the Commonwealth Bank Branch in Sydney. Picture: NCA NewsWire

“Does not pass the pub test and is in violation of their community licence … when is enough enough?” a user said.

“The war on cash,” a user added.

“Highway robbery. I will cancel my accounts and never set foot in their banks or use their ATM’S again,” a subscriber commented.

“It’s high time there was some regulation reimposed on banks,” another user said.

“The Commonwealth couldn’t be any further from its peoples’ bank origins if it tried,” another commented.

The move sparked outrage online, with Graham Rowan questioning why CommBank wanted to charge “a fee” for withdrawals for customers in store.