Life, Masterclass, Money

If you use Redi ATMs watch out for new fees

Published on December 30, 2018 10:26 pm, by

Key point

NAB and some other financial institutions will start charging fees for using Redi ATMs from 1 Jan 2019. Up to now many people have been able to use the Redi ATM network for free.

Background

The Redi ATM network is owned by Cuscal. Previously, it had agreements in place to let customers of some other institutions, including NAB, use their ATMs for free. As we understand it Cuscal charged NAB a fee for the use of the ATMs but NAB chose to absorb the fee and not pass it on to customers.

This made sense when banks wanted to provide their customers with access to as many ATMs as possible. Now that ATM and cash transaction volumes are falling and the major institutions have removed fees for using other people’s ATMs it no longer makes sense for NAB to pay Cuscal when customers use a Redi ATM.

So be warned – if you use Redi ATMs you may incur fees from 1 Jan 2019. There are plenty of ways to avoid the fees – use an ATM that belongs to the institution your account is with, use an ATM that belongs to one of the major banks, withdraw cash at one of the major super markets or don’t use cash (though this may incur a credit card surcharge).

 

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Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.

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