What are Bank Fees and Why Should you Care?

TL;DR 

• Bank fees are charges your bank applies for using certain accounts, services or features, from monthly account keeping to dishonoured payments and overdrafts. 
• They matter because they're rising fast. Australian households paid more than $4.1 billion in bank fees in the year to June 2025, according to the Reserve Bank of Australia. This is up 7% on the year before. 
• Credit cards remain the biggest cost, making up around 40% of household bank fees. Home loan fees jumped 17%. 
• The most common transaction account fees are monthly account keeping ($5 median), dishonoured direct debit ($10 median) and unauthorised overdraft ($10 median), based on Canstar research. Most of these fees are avoidable by choosing the right account, keeping a buffer in your balance and staying on top of your budget.

What are bank fees? 

Bank fees are charges a bank applies for maintaining an account or processing certain transactions. They cover things like keeping an account open each month, a payment that can't go through, spending overseas, or your balance dropping below $0. 

Some fees are fixed and predictable, like a monthly account keeping fee. Others only apply if something goes wrong or your circumstances change, like a dishonoured payment or an overdraft. 

Not every account charges every fee, and the same fee can vary from one bank to another, which is part of why it's worth knowing what you're paying for.

Why should you care about bank fees? 

Bank fees are back on the rise, and they add up faster than most people expect. The RBA's May 2026 Bulletin reports that fee revenue collected from households grew by 7% in the year to June 2025. 

Australians paid more than $4.1 billion in household bank fees over that period, an increase of roughly $268 million on the year before, according to RBA data reported by Canstar. 

Credit cards were the single biggest driver. They made up around 40% of all household bank fees, with fee revenue up 10% largely due to overseas spending and foreign currency conversion charges. Home loan fees rose even faster, up 17% for the year, mostly because banks have been winding back cashback deals for new and refinancing borrowers. Personal loan fee revenue was the one bright spot, falling 19% over the same period. 

The reason this is worth your attention isn't just the national total. It's that a lot of these fees are quietly recurring or easily triggered, which means the same account could be costing you money every single month without you noticing, or catching you out at the exact moment you can least afford it.

What are the most common bank account fees? 

Beyond credit cards and home loans, everyday transaction accounts still carry a range of smaller fees that can quietly add up. Based on Canstar's research across personal transaction accounts, here are the ones to watch.

Monthly account keeping fee 

Around 28% of transaction accounts still charge a monthly account keeping fee, with a median cost of $5 a month. Some banks waive this if you deposit a set amount each month, commonly around $2,000. Without meeting that condition, this fee alone can add up to $60 or more a year just to hold a bank account.

Dishonoured direct debit fee 

This fee applies when a scheduled payment can't go through because there isn't enough money in your account. It's charged by around 68% of accounts, with a median cost of $10 per dishonour.

Unauthorised overdraft fee 

Around 49% of accounts charge a fee when your balance goes below $0, whether that's your bank covering a payment or a merchant taking out more than you had available. The median cost is $10 per occurrence.

These fees can stack up quickly if they're triggered more than once, which is why it's worth knowing which ones apply to your account before they catch you out.

What can you do about bank fees? 

Find an account that matches how you actually bank 

If you can't reliably deposit $2,000 or more into your account every month, look for a transaction account that doesn't charge a monthly keeping fee regardless, rather than one that only waives it under conditions you might miss.

Check your balance and budget regularly 

Keeping an eye on your account and getting into the habit of budgeting regularly can help you spot when you need to top up, hold off on a purchase, or contact a provider about pausing a direct debit before it bounces.

Keep a small buffer in your account 

A modest buffer can help absorb bills or direct debits you'd forgotten about, reducing the chance of an unauthorised overdraft or dishonour fee.

Consider a short-term option for the gap before payday

If you're short before payday, a Beforepay Pay Advance can give you access to up to $2,000, subject to eligibility, with transparent fees and repayments aligned to your pay cycle. It's one way to cover a gap without risking dishonour or overdraft fees on your everyday account, and there are no traditional credit checks or account-keeping fees. You only pay when you use it.