Bendigo and Adelaide Bank the latest to sting customers taking out their own money at branch

Bendigo and Adelaide Bank has defended a decision to join Commonwealth Bank in charging customers to access their cash at a branch, risking community ire amid the cost-of-living debate.

The $7.5 billion bank, Australia’s “most trusted” according to its website, has been charging $2.50 for over-the-counter withdrawals at a branch since November 1 after changing its fee structure to scrap a $6 monthly charge on its everyday accounts.

Bendigo on Tuesday said the changes would result in “a net reduction” in the fees it is pocketing, while conceding that some customers who regularly visit branches could pay more.

The move threatens the group with reputational damage in a highly charged environment where the public is still wary about Australia’s banks after the misconduct exposed by the banking royal commission and politicians are ready to pounce on missteps.

CommBank was castigated last month for its botched introduction of a $3 over-the-counter fee affecting about one million customers.

After a national backlash, the country’s biggest lender “paused” the fee for those customers who would be worse off under the change, but it stopped short of scrapping the new charge.

With about 90 per cent of their transactions done digitally, banks are trying to convince the hold-outs who prefer face-to-face dealings with staff to also transition across while closing branches to cut costs.

Bendigo on Tuesday said affected customers were notified of the changed fee structure over September and October last year, explaining that they were aimed at meeting customers’ “evolving needs” and delivering on “our vision to be Australia’s bank of choice”.

“Bendigo Bank removed the monthly service fee of $6 on Bendigo everyday accounts and at the same time, introduced a staff assisted service fee of $2.50 for cash withdrawals completed over the counter in our branches,” it said. The new fee does not apply to pensioners or other concession card holders.

For transactions conducted through Australia Post offices, Bank@Post fees were also reduced from $4 to $2.50. Cash withdrawals from Bendigo Bank’s ATM network continue to be free of charge for all of its customers.

“Importantly, these changes will result in a net reduction in fees paid by our customers,” the bank said.

“In recognising that some customers may incur an increase in fees, our team members are standing by to help with alternative options and we encourage those customers to speak with us.”