Bendigo Bank blasted for introducing $2.50 ‘service fee’ to withdraw cash at local branches

Customers at one Australian bank are being forced to pay up if they want to withdraw cash from their accounts when they visit their local branch.

Bendigo Bank has introduced a fee for over-the-counter in-branch withdrawals, describing it as a “staff assisted service fee”.

The bank said it changed its fees and charges in November 2024, including removing a monthly service fee and reducing the fee for postal wiithdrawals, in a bid to meet “the evolving needs of our customers”.

“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,” the bank said in a statement.

It is understood Bendigo Bank warned its customers of the changes in the months leading up to their introduction.

“For transactions conducted at the Post Office, Bank@Post fees were also reduced from $4 to $2.50,” the statement continued.

Cash withdrawals from Bendigo Bank’s ATM network will be free of charge; as will all withdrawals, deposits and balance enquiries (including in-branch and at post offices) for customers that are Concession Card holders.

Bendigo Bank is following in the controversial footsteps of Commonwealth Bank, which caused a national uproar weeks before Christmas when it announced its plan to introduce a $3 fee for select cash withdrawals — from a branch, post office or by phone — from January 6.

CBA informed customers with Complete Access Accounts their money would be moved to a Smart Access Account from that date, too, and would incur a $4 monthly account keeping fee.

The announcement sparked widespread outrage, which prompted the bank to announce it would “pause” the changes and spend the next six months working with customers who would have been out of pocket.

Bendigo Bank, however, says the new $2.50 fee was introduced alongside fee reductions that would mean customers paid less overall.

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

But the fees did not slip bast 2GB Mornings host Mark Levy, who slammed the move and Bendigo Bank’s explanation.

“‘It’s all well and good for them (Bendigo Bank) to spin it and say “oh, well we’ve reduced our monthly service fee, there’s going to be a net decrease in what our customers are paying,” but you’re still charging people $2.50 per transaction to walk into a Bendigo Bank and get your own money out,” Levy told his 2GB audience.

“How is that fair? How is that fair? Out of all the businesses in Australia to cry poor, it can’t be the banks.”

The Nightly has approached Bendigo Bank for comment.