KEY POINTS:
The sting of using another bank's cash machine got a little sharper this week, with the country's biggest bank doubling the cost of getting cash from the competition.
ANZ followed an April move by BNZ to hike the cost of using another bank's money machine from 50c to
$1.
And while other banks were still charging 50c, Massey University banking expert David Tripe said it was only a matter of time before all the big banks were charging $1.
Banks charge each other when a rival bank's customer uses one of their money machines. Mr Tripe said charges between banks had recently gone up to between 50c and 70c a transaction. Only one bank - TSB Bank - does not pass this cost on to customers.
The Australian-owned banks have posted record profits over the past decade. Consumer New Zealand research manager Belinda Allan said doubling the charge to customers for using another bank's ATM seemed like a big increase, even taking into account increased costs to banks.
She said the price hike could pose problems for those who live outside the main cities. "If you're living in a major city you have a choice about what ATM you use, but if you live in a rural area it might not be that straightforward."
A spokesman for Kiwibank said the state-owned bank did not charge an "other bank's ATM" fee for customers living in towns without a Kiwibank money machine.
For those who could not get to their own bank's money machines, Ms Allan's advice was to use shopping outlets that let you withdraw cash for free.
However, overseas research suggests the best result for customers would be for banks to stop charging each other ATM fees altogether.
Mr Tripe said banks tended to add more cash machines to their networks when it cost money for their customers to use another bank's machine. This eventually increased the cost of the service to consumers.
He said New Zealand's "other ATM" fees were still low compared to other countries. In many places it was not unusual to pay $2 a transaction.
And while many people grumbled about bank fees, a large number would still use the nearest ATM without looking to see which bank it was.
"People grizzle about fees without thinking about how their own behaviour affects them," said Mr Tripe.
Ms Allan said some banks had the highest fees for some things and the lowest for others, and the difference could add up.
People should think about what kind of transactions they did and choose a bank that suited their needs.
"People think it's a real hassle to change, but your new bank wants your business, so they'll make it as easy as possible."
