Commonwealth Bank Halts Controversial $3 Cash Withdrawal Fee Plan

Australia's largest bank pauses account migration after backlash over new branch withdrawal fees.

The Commonwealth Bank announced a pause on plans to charge a $3 fee for cash withdrawals at branches, post offices, or over the phone for certain account holders.
The fee was tied to migrating customers from the 'Complete Access' account to the newer 'Smart Access' account, which has a lower monthly fee but includes the withdrawal charge.
The decision faced widespread criticism from politicians, customers, and advocacy groups, with the federal government labeling it a 'kick in the guts' for consumers during a cost-of-living crisis.
Bank executives admitted to poor communication about the change and committed to consulting affected customers individually over the next six months.
The controversy highlights broader concerns about declining access to cash and branch closures, particularly in rural areas, as digital banking becomes more prevalent.