Bank charges its customer for various reasons like other bank ATM withdrawal, overdrawing from the account, failure to maintain the minimal deposit and many other reasons. For three years in row, there is a decline in the bank fee for the household accounts.
Reasons for decline in bank fee
The first reason is to attract more household customers. Due to competition among the private banks and the government banks, each bank advertises itself effectively. People tend to open accounts in the banks that requires low deposits. There is a decline in the credit card fee and overdraw fee. To attract customers, banks also pay higher interest rates to people and reduce their fees.
The Reserve bank states that the yearly income to the bank through fees has reduced by 0.3 percent. Though there is a fall, banks make 4.1 billion dollars in fees, paid by the household account holders.
Effects on business customer
How do banks manage to reduce their fee for their customers? All these concessions are for household account holders only. The business customers are paying more than before. The business customer fees are increased to 7.3 billion dollars last year accounting for 7% increase. Due to the GFC, many companies needed finance from banks and the bank have a huge lift in lending money to entities.
Source: http://www.smh.com.au/money/planning/home-truths-about-banks-business-slug-20130730-2qvhh.html