Hi All,
I was thinking about the attractive features which lure customers from the Big 4.
ING is my reference point, seeing that they had 2% cashback + free ATM usage.
How would you add value to your bank if you wanted to stand out from the crowd now?
I suppose a cashback scheme from the smaller banks would be possible again.
Well, the Citibank plus account can do all 3 of the items you mentioned….don't have to use it just for overseas ATM withdrawals.
Only thing it cannot do is allow me to buy overseas using a credit card - I need to have the cash available in my account.
Well, in your initial post, you didn't specify using credit, you just said 28degrees for buying things overseas which you can do perfectly well with the Citibank plus card, you just need cash in your account
Credit cards are whole different kettle of fish altogether from transaction accounts eg, you need to do credit check, have income, etc. Different type of product so you can't really compare the lack of features with the other and you'll never be able to use credit on a transaction account, unless you want to pay overdraft fees
Are all banks removing ATM fees now?
Removing ATM fees as ATM usage drops to record low levels - wow, what an amazing gesture for the public to be impressed with. Those banks are great! Great, great guys, real high quality businesses!
Come to think of it, no, it won't be free for all if you're not banking with ING or similar.. The pub ATMs will still charge a fee.
Usually when usage drops.. fee increases.
Same fixed costs, less transactions means increased costs per transaction
The majority of the cost is the security that comes to refill them. Less transactions means less refills means less operating costs.
Higher interest rates, I'd prefer not to have my money split in between different banks just to get 1-2% extra interest.
Oh great no fees! Just like back in 2007!!!!
People have forget that the ATM fees are a fairly recent thing anyway.
So, they're just going to recover the fee another way just like they did in the past.
FYI, there was always ATM fees…they were just hidden or obscure. Australia just moved to "direct charging" in an attempt to make the fees more transparent and increase competition.
https://www.google.com/search?q=atm+direct+charging+reform
It's going to be hard/impossible to know/track where they shift the "fee" to recover the lost "income" now???
Interest rates are in an upward cycle. Big 4 Banks will be making more than the $1/2 billion ATM fee sacrifice.
Coincidentally fee free RACQ Bank opened for business today.
Queensland today, other states to follow to create nationwide bank to rival the Big 4 ?
My 2c worth.
I would remove international transaction fees and make sure I was giving my customers a decent exchange rate. Travel is more popular then ever, I would love to not need to have a day to day bank account, a 28 Degrees for buying things overseas, a Citibank Plus account for overseas ATM withdrawals etc. Why can't a single bank offer all these features I want!