Bendigo Bank, Australia’s sixth-largest financial institution, has come under fire for implementing a $2.50 fee on over-the-counter cash withdrawals at its branches. The fee, introduced in November 2024, has provoked a wave of public backlash, with critics accusing the bank of imposing unnecessary financial burdens on customers.
The decision follows a similar move by the Commonwealth Bank, which introduced a $3 withdrawal fee in 2023 but paused it after widespread protests. Now, Bendigo Bank’s new policy is facing similar outrage from customers and commentators across Australia.
Bank’s Justification and Specific Changes
Bendigo Bank defended the fee, describing it as part of an adjustment to its fee structure to better serve customers. A spokesperson explained that the bank has removed its $6 monthly service fee on Bendigo Everyday Accounts, while reducing Bank@Post fees from $4 to $2.50. However, the spokesperson acknowledged that some customers might see an increase in costs due to the new withdrawal fee.
“Bendigo Bank introduced some changes to its fees and charges in order to meet the evolving needs of our customers and deliver on our vision to be Australia’s bank of choice,” the spokesperson said. “Importantly, these changes will result in a net reduction in fees paid by our customers.”
To address concerns, the bank stated that concession card holders could still access in-branch services, including withdrawals and deposits, free of charge. Additionally, cash withdrawals made through Bendigo Bank’s ATM network remain free for all customers.
Public Backlash and Expert Reactions
Critics and commentators have denounced the move, arguing that it penalizes customers who rely on face-to-face banking, particularly the elderly and those in rural areas. Mark Levy, a prominent host on Sydney’s 2GB radio station, was among those to lambast the policy.
“How is it fair? Out of all the businesses in Australia to cry poor, it can’t be the banks,” Levy said on air. “You’re charging people $2.50 to walk into a branch and get their own money. It’s a joke.”
Social media users echoed similar sentiments, with many accusing Bendigo Bank of prioritizing profit over customer care.
A Snapshot of Fee-Related Changes:
| Service | Fee Before November 2024 | Fee After November 2024 |
|---|---|---|
| Over-the-counter withdrawal | Free | $2.50 |
| Monthly service fee | $6.00 | Removed |
| Bank@Post transactions | $4.00 | $2.50 |
| ATM withdrawals (Bendigo network) | Free | Free |
Commonwealth Bank Parallels and Broader Implications
This backlash comes on the heels of a similar controversy involving the Commonwealth Bank. In late 2023, Australia’s largest bank attempted to introduce a $3 fee for over-the-counter withdrawals, only to face massive public opposition. The policy was paused after Angus Sullivan, Commonwealth Bank’s Group Executive of Retail Banking, admitted that they had miscommunicated the change.
The timing of Bendigo Bank’s fee, mere months after the Commonwealth Bank’s reversal, has led to criticism of the bank’s decision-making process.
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