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CBA - Commonwealth Bank of Australia

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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

Just a “pause” for now. Maybe someone is asking are the social licence costs worth it? Regardless of what anyone thinks of cash, there are plenty people willing to fight this decision for their reasons.
 
It’s actually a very fair decision.

Eg reducing the monthly account fees but introducing a cash handling fee, it means the people that don’t use cash pay less than before, and the heavy users of cash will pay a bit more for the services they use, because they won’t be subsidised by the non cash users as much.
 
They make millions out of your money when it's in the transaction limbo, I used to know a banker in the 90s who would do things like put it on the money market over the weekend.
 
TimeISmoney said:
They make millions out of your money when it's in the transaction limbo, I used to know a banker in the 90s who would do things like put it on the money market over the weekend.
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Yes, but at call funds, that are withdrawn every pay day are not very useful to the banks.

$410 Million is cash handling costs is a large wack, I don’t see a problem with moving a larger portion of those costs on to the actual people using that service and reducing the cost of the people that don’t.

It’s a bit like realising that not everyone at the Buffett drinks the alcohol, so you decide to reduce the price of the Buffett, but charge $3 for beers.
 
frugal.rock said:
I say "bank run on Commonwealth Bank".
Take your cash and run.
Close your account.
Hi hun. Stupid auto correct... was supposed to be ho hum!
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Why 90% of the customers were going to be paying less, when you factor in the lowering of the monthly bank fees. Only the heavy users of the ATMs will end up paying more once you add in the $3 withdrawal fees, which seems fair enough to me.
 
TimeISmoney said:
They make millions out of your money when it's in the transaction limbo, I used to know a banker in the 90s who would do things like put it on the money market over the weekend.
Click to expand...
who? name please? Did he keep the margin for himself? otherwise, so what!

was better In the 1970s .. bank a cheque at 4.50pm* on a Friday, get it cleared on a Mondsy, earn 2x interest for the weekend. (not clearedctill Mon, but credited as depsit on Fri.) ..Long weekends were even better, and interest rates were high !!

* note , banks closed at 4pm Mo-Th, but opened an extra hour on Fri.
 
It was for a major bank that he managed. I don't think he would have kept the profits for himself, I'd guess he would have been on some type of commission but never asked. We were talking about the time it takes to transfer money into accounts and where it goes, and he boasted about making a phenomenal figure for back then. If you have millions of dollars in transaction limbo at any one time, it would make sense to invest it.
 
boofhead said:
Many people aren't paying account keeping fees at the moment.
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Yes, if you do enough business with the bank you might get offered an account type with no fees, or if you have a home loan often free bank accounts are offered as part of the package, obviously paid for with the profits of the home loan.

But, if you don’t really do much at the bank accept having an at call bank accounts you probably have a monthly fee.
 
Value Collector said:
But, if you don’t really do much at the bank accept having an at call bank accounts you probably have a monthly fee.
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Really? I think every high interest at call savings account has no monthly fees these days. Competition is a great thing.
 
rolly1 said:
Really? I think every high interest at call savings account has no monthly fees these days. Competition is a great thing.
Click to expand...
That depends which ones you are talking about, they all have different pros and cons, and expectations of your actions etc. often they have limits to using ATMs, and will charge a fee if you use ATM’s at all or above a set limit.

If the provider tends to attract clients that mainly use debit cards instead of withdrawing physical cash, as well as maintaining a balance rather than bringing the account to zero every pay cycle, they don’t need to charge an account fee, because the profit comes from debit cards instead transactions and interest margin.

As I said my bank got rid of monthly fees on my account, but that the same time they brought in a rule limiting the use of ATMs and Tellers.
 
Account keeping fees are a wrought and should not exist. Even for transaction accounts which pay no interest which means the bank is borrowing your money for free and yet sometimes they still charge an account keeping fee. So you pay for the privilege of lending your money for free to the bank. It makes sense to charge a fee if the banks were a storage vault like back in the old days hundreds of years ago but they are not storing your money they are lending it out which means if everyone demanded their deposits back at the same time the banks would not be able to pay out the money yet to rub salt into the wound they charge an account keeping fee.

Anyway these dumb banks don't get the bigger picture. Everybody hates banks and just like Blockbuster in the 1990s with their hated late fees they will soon be disrupted. Within 20 years crypto companies will overtake banks.

Banks have so many rules and regulations about what you can do with your own money admittedly a lot of it coming from regulators but some of it is their own rules. Who wants to deal with all that nonsense when you can send $1 billion dollars of USDT or Bitcoin to the other side of the world including sanctioned countries like Iran or Venezuela in 10 minutes for a few dollars. Furthermore the government cannot shutdown peoples Bitcoin wallets the way Justin Trudeau shut down peoples bank accounts during the scam-demic when they protested against his dictatorship (COVID was the biggest scam of all time).

The modern banking system is a scam with its fractional reserve banking model, high fees, high regulations, etc. Society will be a lt more productive when the crypto eco-system eventually replaces the banks.
 
I could not care less about banking fee for manual transaction etc, but hate the control banks have on our own access.
Only a small but growing percentage of users actually realise how hard it is to access your own money, especially with CBA for me....
Not even talking Bitcoin or cash, just moving money toward other aussies accounts, god forbid me if overseas
The more this realisation spreads, the less the trust in the banks, and the current banking system is a house of cards fully and only built on trust...
 
There are many ways to get accounts with out fees. But some people literally do no business with the bank except get money deposited and then withdraw it straight away, they cost the bank a lot of money.
 
You can access your money pretty much world wide, that’s pretty good access,
 
Value Collector said:
You can access your money pretty much world wide, that’s pretty good access,
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There are a lot of hoops to jump through.

Also lets not even mention the insane fees for converting one currency to another or paying by credit card overseas etc.

For example if you want to withdraw $50,000 in cash from a bank branch these days you need to give 48 hours notice. Most banks also have transaction limits for accounts on how much money you can send to another account in one transaction.

Also many banks in Australia put limits on sending money to crypto currency accounts.

Not to mention bank transfers are still often slow especially for larger amounts between different banks can still take 1 - 2 business days to clear which is completely unacceptable in the digital age. You are literally just moving numbers around in a software system its not like physical cash is being carted around so why should;d it take up to 2 business days?

If you want to move big amounts of money fast (it still takes hours though) you can do a wire transfer in Australia banks generally charge $30 or $35 for that. With Bitcoin and other cryptos you can do it much faster for a much smaller fee not to mention you are dealing with Austrac bull**** by sending crypto from one cold storage wallet to another.

Name one single way in which traditional banking is technologically superior for customers than crypto or enables them more freedom than Crypto?
 
Value Collector said:
There are many ways to get accounts with out fees. But some people literally do no business with the bank except get money deposited and then withdraw it straight away, they cost the bank a lot of money.
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Straw man argument. The number of people doing this is negligible.
 
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