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Minimising fees on transactions

Minimising fees on transactions

There may be times when you try to make a transaction but don’t have enough money in your account. This may trigger a payment honour or dishonour fee, so it’s important to know what these are and how to minimise the chance of incurring them.

Preventing your account from overdrawing.

If your account is overdrawn, it’s important to top up your balance as soon as possible to avoid overdrawing it further, as you may incur multiple payment honour fees and interest may be charged on the negative balance.

To help avoid them, it’s good to:

  • check your account frequently to make sure it has enough funds to cover your transactions.
  • allow enough time for deposits to be processed before you draw on the funds (some can take up to 5 business days).
  • keep track of your periodic payments (including direct debits and recurring payments) and reschedule them if you need to.


Make a change today: If you’re a single account holder, you can change your account overdraw preferences in branch or over the phone at 13 13 76. Switch payments like direct debits and cheques so that when there are insufficient funds, they’ll be dishonoured (you may incur a dishonour fee of $5).

Experiencing financial hardship?

In these uncertain times, we want to make sure all our customers are getting the support they need. If your circumstances have recently changed and you’re having difficulty managing your finances, we can help.

We've put together some tips and resources to help you stay on track. For further support, please call our Customer Assist Team on 1300 369 415 or visit us in-branch.

What are payment honour and dishonour fees?

Fee type How it is charged Cost
Payment honour fee

You may be charged $15 if we honour a transaction that overdraws your account.

- The fee is charged once daily, even if you make multiple transactions that overdraw your account on the same day.

- If you overdraw your account further on another day, you’ll be charged again.

- You’ll also be charged debit interest for as long as your balance remains negative.

$15 (max. per day) + interest accrued on negative balance1
Dishonour fee

You may be charged $5 if your account doesn’t have enough funds to cover a transaction and we decline it.

- This applies to your periodical payments, direct debits, and any cheques you write.

- Bear in mind, these types of payments will be initially processed to your account but dishonoured the next business day, so the fee will be delayed.

$5 (per transaction)

Some example scenarios:


Minimise fees on transactions scenario 1

Mark pays his $50 phone bill by direct debit.

But he doesn’t realise his account balance is low – only $10 – when the phone bill is processed. This means his account is overdrawn by $40 and he incurs a $15 payment honour fee. If he had opted in to receive low balance alerts, he could have received a notification on his phone and known to top up his account before it was overdrawn.

Minimise fees on transactions scenario 2

Jose pays an unexpected bill to fix his car after it breaks down.

But he forgets to check his balance after the transaction is processed, so he doesn’t have enough funds to cover the rent which is paid by direct debit two days later. His account is overdrawn by $200 and he incurs a $15 payment honour fee. If Jose had Quick Balance on his Mobile Banking app, he might have found it easier to monitor his account’s balance and keep it topped up.

Minimise fees on transactions scenario 3

Sandra's monthly health insurance fee is dishonoured.

One day, the $120 direct debit is processed when she only has $60 in her account. She has changed her preferences to prevent her account from overdrawing, so the transaction is dishonoured. Because of this, she may be charged a $5 dishonour fee, rather than the $15 payment honour fee for overdrawing her account.


Other tools to help you manage your spend.

Notifications and alerts.

Pre-set an account limit and we’ll send a pop up alert straight to your phone if your balance falls below it. You can opt in to this free service via the Mobile Banking app so you don’t find yourself caught short of funds.

Learn more  >

Quick Balance.

Keep on top of your most recent card activity by setting up Quick Balance. No need to sign in to Mobile Banking; in a flash, you can see your account balance and also your 10 most recent transactions from the past 14 days.

Learn more  >

Budget planner.

This calculator lets you figure out the ins and outs of your account without having to do the maths. Compare earnings versus daily expenses and splash outs to see where you have room to grow and what needs a little trimming.

Learn more  >

Spend tracker.

Sort your spending patterns into categories via Internet or Mobile Banking. You’re sure to pick up on some handy insights with automatic monthly breakdowns, and you can even drill down further with sub-categories and stats.

Learn more  >


Dont have Mobile Banking?

To get the most out of these handy tools and features, you can download the app from the App Store or Google Play.


Are you a concession cardholder?

If you hold a Health Care Card, Seniors Health Card, or Pensioner Concession Card, you may be eligible for a Concession Account, which may only be overdrawn under certain circumstances.2

Important information

1. If your account becomes overdrawn and there is no overdraft arrangement in place (or any overdraft arrangement is insufficient to cover the overdrawn amount), debit interest will be charged to your account at the Unarranged Lending Rate. See the Transaction Savings and Investment Accounts Terms and Conditions for more information.

2. Eligible for Health Care, Seniors Health and Pensioner Concession cardholders. This account does not become overdrawn except where it is impossible or reasonably impractical for us to prevent it. See the Transaction Savings and Investment Accounts Terms and Conditions for more information.