Well someone has to cover the $410 Million cash handling costs, I have been saying here for ages cash is expensive to handle, and will need to have a charge applied eventually.When one bank does it and gets away with it, the others seem to follow.
It’s funny how they say “to withdraw their own money”No comment from me on this action. Queue outrage though.
Commonwealth Bank to charge customers $3 'withdrawal fee' to access their own cash
The Commonwealth Bank has unveiled major changes to one of its main everyday account offerings, which will see customers charged $3 to withdraw their own money.www.abc.net.au
They spent $410 Million last year handling cash, I don’t think asking customers to pay something to help cover this cost is “thieving”@embryo Nothing like greed when a thieving bank is involved
The armed guards etc that need to work behind the scenes are real costs.If they weren't making billions already perhaps it would be more acceptable. But charging to take money out of the post office is a bit rich.
Well, that's your opinion but not many others agree with you.They spent $410 Million last year handling cash, I don’t think asking customers to pay something to help cover this cost is “thieving”
Obviously people that are used to getting a service for free, get a bit touchy when they are finally being asked to pay for that service.Well, that's your opinion but not many others agree with you.
Yes CBA is in the business or taking deposits and making loans etc etc, but the vast majority of that these days is done digitally, at very low cost, and where the costs are higher for example point of sale transactions, they pass the costs on.My take is that banks manage the money one deposits to garner interest, irrespective of where the deposits come from (retail, business etc) and how that is done (loans, short term interest etc). How they manage our deposits is really up to them, we simply expect our money to be available when required or due.
So the banks earn money/interest on the depositors money. The banks recompense depositors by paying nominal and pegged interest rates.
That's the trade off for allowing the banks to "manage/hold" our hard earned.
When a bank makes, let's see: CBA made over $9.8b in profit in 2024, down about 6%, but that's neither here nor there is it?
Surely in the face of such profit, they can absorb the cost of money handling because really, this is the business they are in. It's the cost of doing business right?
Now if CBA was barely turning a profit, one could understand and even swallow the $3 slug.
As an aside, not that I've really thought this through and it's just a random musing. If the CBA is hurting so much why not go private and keep all the profit for itself, They'd be able to have the best xmas bonuses ever and, pay for that pesky cost of doing business in cash.
P.S.
Couldn't find how much it costs CBA to handle cash as per noted by @Value Collector
I will respectfully disagree, in the same way it is difficult to access your own money in cash or outside australia above any significant level aka 1k a day.Umm... you do know that major Aussie banks allow crypto transactions and have ATMs that do the same right?
From Bitcoin.com and reads in part: -
You definitely own your own money, but you are using a service, that has expensive running costs. Some one needs to pay for that.People have to realise they do not really own their money once in a bank
CBA have announced that they will charge a $3 fee for taking out cash at a branch or Post Office
I took a closer look at the proposed change, and it’s actually pretty fair.Well, that's your opinion but not many others agree with you.
Yep, they are pausing for 6 months so they can contact each customer directly to explain that the account keeping fees are dropping, and the cash handling fees are being introduced.CBA “pausing” their decision.
Commonwealth Bank pauses plans to charge customers $3 fee to withdraw cash
Australia's biggest bank has paused its plans to charge customers a $3 fee to withdraw their own money at bank branches around the country, a day after it was announced.www.abc.net.au
Because you are a big four bank.The armed guards etc that need to work behind the scenes are real costs.
They are making billions from the other business units, but why should customers of the other business units subsidise the cash users?
Do you honestly think they never charged in some form for cash after all these years?Obviously people that are used to getting a service for free, get a bit touchy when they are finally being asked to pay for that service.
But, that is a long way from theft. I mean when a business asks a credit card user to pay a 0.5% surcharge do you count that as theft?
@Value Collector It may look fair to you, but the dickheads at Com Bank sure did an about face summersault today over that $3 transaction. It didn't take very long for them to realise that when people start saying they will walk with their money to another institution, then the penny drops and they wake up to themselves.I took a closer look at the proposed change, and it’s actually pretty fair.
Basically all that $410 Million cash handling cost is mostly covered with account keeping fees, but not all customers paying those monthly fees use cash a lot, so they are subsidising the heavy cash users.
So to make the system fairer, the bank is reducing the monthly account keeping fee for every one, but adding a cash withdrawal fee.
This aligns the fees more closely to those using the services, so that people that don’t use cash as much aren’t subsidising those that do.
They actually did this 6 years ago on my business account, they eliminated the monthly fee, but limited the amount of free cash deposits and withdrawals I could make.
You are not getting the bigger picture crypto is building out its own whole ecosystem. For example instead of borrowing from a bank in the future peer to peer lending on decentralized exchanges will take off disintermediate the middle man (banks).Umm... you do know that major Aussie banks allow crypto transactions and have ATMs that do the same right?
From Bitcoin.com and reads in part: -
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