How to Stop Paying Bank Fees in Australia: A Complete Guide

Australian banks collected over $4 billion in retail banking fees in 2023. Many of those fees are avoidable — but banks are not going to proactively tell you how to stop paying them. This guide covers every major bank fee and how to eliminate it.

Monthly Account Keeping Fees

The big four banks (Commonwealth, Westpac, NAB, ANZ) charge monthly account keeping fees of $4–$10 on many transaction accounts unless certain conditions are met — typically maintaining a minimum balance or having your salary deposited.

How to avoid:

• Link a salary or regular deposit to the account — most big bank fees are waived if you deposit $2,000+ per month.
• Switch to a fee-free digital bank. ING, Macquarie, Up, Ubank, and 86 400 (now NAB-owned) all offer genuinely fee-free transaction accounts.
• Young Australians (under 25) usually qualify for fee-free youth accounts at major banks.

Best completely fee-free accounts in 2025: ING Orange Everyday, Macquarie Transaction Account, Up Everyday Account. All have no monthly fees, no minimum balance, and excellent app experiences.

ATM Withdrawal Fees

Using an ATM outside your bank's network typically costs $2–$2.50. Using your card overseas can cost $3–$5 per transaction plus a 2–3% currency conversion fee. Annual cost for moderate ATM users: $50–$200+.

How to avoid:

• ING Orange Everyday refunds all ATM fees worldwide when you deposit $1,000/month and make 5 purchases. Eliminates ATM fees entirely.
• Macquarie Bank refunds Australian ATM fees with no conditions.
• Use your card for tap-and-go purchases instead of cash — there are no fees for EFTPOS purchases on fee-free accounts.
• Coles and Woolworths supermarkets offer free cash out with purchases — withdraw cash at the register with no fees.

International Transaction Fees

Most Australian bank debit and credit cards charge 2–3.5% on international transactions — this applies both overseas and when shopping on foreign websites (Amazon.com, US/UK retailers, etc.).

How to avoid:

• Wise (formerly TransferWise): Offers a debit card with real exchange rates and very low fees on international transactions. Excellent for overseas travel or frequent international online shopping.
• ING Orange Everyday: No international transaction fees with conditions met.
• Macquarie Transaction Account: No international transaction fees.

Overdraft and Dishonour Fees

Being overdrawn or having a payment dishonoured can cost $5–$20 per incident. These are often a sign of cash flow issues rather than intentional behaviour.

How to avoid:

• Set up a low balance alert in your banking app — most apps allow this at any threshold you choose.
• Link a small savings buffer ($200–$500) to your transaction account as an automatic overdraft protection.
• Use a digital bank like Up that shows your balance in real time and doesn't allow you to overdraw (transactions are declined, not dishonoured with a fee).

Credit Card Annual Fees

Credit card annual fees range from $0 to $700+. Premium rewards cards with high annual fees (Amex Platinum, Westpac Altitude Black, CommBank Ultimate Awards) require significant annual spend to justify the rewards.

How to evaluate:

• Calculate the dollar value of rewards you actually earned last year.
• Subtract the annual fee.
• If the net result is negative, the card isn't earning you money.
• No-annual-fee cards with decent rewards exist: 28 Degrees Mastercard, CommBank Neo, and several others offer solid utility with no annual fee.

The Best Free Banking Setup in Australia (2025)

Here's a lean, fee-free banking setup that covers everything most Australians need:

1. Day-to-day transactions: ING Orange Everyday — no fees, ATM fee refunds, cashback via Cashback Everyday.
2. Savings: ING Savings Maximiser linked to the Everyday account — up to 5.50% with conditions.
3. International purchases: Wise debit card — real exchange rates, very low fees.
4. Credit card (optional): A no-annual-fee card for online purchases and rewards if you pay it off monthly.

This setup costs exactly $0 in fees and gives you better functionality than most paid banking arrangements from the big four.

How Much Can You Save?

The average Australian paying monthly fees, occasional ATM fees, and international transaction fees is spending $100–$400 per year on avoidable bank costs. Switching to a fee-free setup is a one-time task that saves money every year thereafter.