How ‘greedy’ Commonwealth Bank has already been charging Australians for cash withdrawals – and has no plans of stopping despite major backlash

The Commonwealth Bank already charges Australians to withdraw their own money over the counter – and this won’t change despite a small group fee backlash.

Australia’s largest bank was hit with outrage this week after announcing that customers on its Complete Access accounts would be moved to Smart Access accounts from January 6, including the $3 supported withdrawal fee.

The announcement sparked a wave of backlash with politicians joining ordinary Australians in labeling the bank as ‘greedy’.

On Wednesday, CommBank chief executive Angus Sullivan said the bank would pause account switching for about 120,000 customers who would be worse off as a result of the change and consult with them for six months to move them to an account that better suits them would fit.

But according to the bank’s terms and conditions document dated November 24, the $3 fee for withdrawing money from a branch, post office or over the phone is already in effect for those who already have a Smart Access account and won’t be going anywhere .

Assisted withdrawal fees are waived for certain groups, including retirees, those under 18 and those who deposit $2,000 a month, but given that CommBank has around 12 million Australian customers, there are still a large number who would be willing to pay this fee .

It also does not apply to cash withdrawals at CommBank, although the bank has removed more than 1,000 of them from its network in recent years.

But while the use of cash is declining, there is still a significant portion who still use it.

CEO Matt Comyn said last year that about 15 percent of point-of-sale transactions were taking cash, compared to more than 40 percent five years ago, even as an increasing percentage of customers are going digital.

“Every week, customers transact more than $18 billion through the CommBank app, a 64 percent increase in just two years.”

He said CommBank’s 10 million customers each paid about $40 to finance the $400 million cost of keeping physical cash in circulation at its branches.

“Many of our customers do not use cash and these customers subsidize those who do,” Mr Comyn said.

Financial Services Minister Stephen Jones said assisted withdrawal fees appear to penalize people who want to use physical money.

“This seems to me to be a tax on Australians demanding the right to use their money, and the government will not support that,” he said.

CommBank customers also rejected the fee after it was announced this week.

‘If you have a Smart Access account, the new rates will already be listed in the app as part of our account. They better satisfy customers quickly,” one person said.

Angus Sullivan (pictured), director of CommBank’s retail banking services, said the $3 fee for personal withdrawals would be suspended for some customers after strong backlash

‘On. People noticed someone took $3 from the money pot – sorry Mr. CBA – you can’t take that,” said another.

‘Why doesn’t the government make this kind of thing illegal for the banks? Something for the people for once. But they are probably lobbying. The banks have never been in touch,” a third added.

“I’ll pause for a moment and then sneak it in slowly, quietly, like a thief in the night,” a fourth added.

‘Not good enough. Pause means it will be introduced later when the adversity subsides. Rip this idea off and stop discriminating against your customers.’

Shadow Chancellor of the Exchequer Jane Hume went so far as to declare she would close her CBA account after having had it since she was at university.

‘It’s ridiculous and customers will talk with their feet. There’s no doubt about it. Including myself actually. I have a Commonwealth bank account. I’ve had it since I was in college. I will close it down because of this decision,” she said on Sunrise.

Ms Hume branded the bank as ‘greedy’ and ‘out of touch’.

Housing Minister Clare O’Neil was also critical of the compensation, saying the government believed it was “unfair” to Australians who were already struggling before December 25.

“Everyone has had a tough year in terms of the cost of living and the last thing they need is a kick in the guts from the Commonwealth Bank just before Christmas,” she said.

Daily Mail Australia has contacted the Commonwealth Bank for comment.