Suncorp’s major fee change affects 300,000 customers
SUNCORP Bank will remove all account keeping fees for its deposit account customers as the low-interest rate environment hits savings.
The Courier-Mail can reveal the Queensland bank will today become the first of the major and regional banks to drop all account keeping fees for about 300,000 personal and business deposit customers.
Customers with a personal deposit account will save up to $60 each year per account, and small business customers will save up to $240 annually per account, depending on the account type and balance.
Suncorp's Deposits and Payments General Manager Bruce Rush said account-keeping fees was the "number one frustration" raised by customers.
"We're proud to be leading the way in removing these fees for all customers," he said.
Mr Rush said the Reserve Bank's move to cut rates to a historic low of 0.5 per cent was not the catalyst for Suncorp's decision, but acknowledged the low-interest rate environment.
He declined to reveal what the fee cut would cost the bank and said the loss would not be recouped through other areas.
"There are no catches, there's no minimum deposits or criteria," he said.
"It's the right thing to do in a low interest rate environment."
Suncorp hopes the move will lure more customers from the major banks.
"I hope customers see we're doing the right thing and they'll make the right choice and give us their business," Mr Rush said.
Mark Johnston owns seven Subway franchises at Toowoomba said he would save about $1000 through the change.
"Every dollar saved is a dollar I can invest back into my business to grow for the future," he said.
Mr Johnston, unrelated to Suncorp CEO Steve Johnston, said his money was shared across a share portfolio, property investment and a growth saver account.
"It's good to have a nice spread," he said.