The Fees People Pay

Abstract

In developed countries, people commonly have a relationship with at least one bank, and they use their bank account(s) to make deposits, obtain cash, transfer funds and pay third parties. Banks charge fees for enabling these activities to be undertaken; however, there is limited information about the actual quantum of fees paid and the issues that affect this. This paper reports on a small study that used a self-administered questionnaire to explore these questions. The study found that a smaller proportion than expected reported paying no fees, and that the expected influence of customer characteristics, such as age and level of deposit holding, was not significant.

Keywords: Bank fees, New Zealand

JEL Classification: G21