Non-major scraps transaction fees

Heritage Bank has stated that as of 1 September, it will be removing current limits on fee-free transactions on savings and transaction accounts, which will apply to common transactions including EFTPOS, counter cash withdrawals, transfers and BPAY, Heritage ATM withdrawals, transfers and balances, and cheque deposits.

Following the announcement, Heritage CEO Peter Lock said: “Previously, we’ve given customers a limited number of these transactions free each month, and then charged a fee per transaction after that.

“From 1 September, we are removing those limits. That means most common transactions will be free, no matter how many our customers carry out each month.

“This change will massively simplify our account structure, make us more competitive in the market and help our customers save money.”

 Mr Lock added that the bank’s decision would simplify the fee structure for customers.

“The complicated nature of the old fee structure made it fairly difficult to understand,” the CEO continued.

“In fact, explaining the structure previously took nine pages in Heritage’s Fees and Limits Guide.

“However, the changes we are making means that from 1 September, the transaction fee structure can be easily explained on just one page.”

The bank has also noted that it will continue to charge its customers fees on transactions from overseas ATM withdrawals and some Bank@Post transactions.

Additionally, Heritage stated that service fees will still apply for overdrawn accounts, or when cheque or direct debit transactions are rejected, but noted that many of the fees have been “cut by more than half”.

“Looking after your day-to-day finances shouldn’t be difficult, and the changes we’re making will not only help customers save money, they will also make banking simpler,” Mr Lock concluded.

[Related: Westpac hikes home loan rates]