ING frustrates customers by watering down its Orange Everyday travel benefits

Australian travellers with the popular ING Orange Everyday account will no longer receive a refund on fees charged by overseas ATM providers from 1 August.

Seasoned travellers accessing cash overseas know all too well just how costly it can be to take money out of an ATM. Each withdrawal typically attracts three separate fees:

1) an international ATM fee from your own bank;

2) a currency conversion fee; and -

3) a fee from the ATM you are using.

ING currently refunds all three fees when taking money out of an ATM overseas, provided customers meet the bank’s monthly terms and conditions – an offer no other bank matches. However, the ATM rebates are capped at five per month, including any domestic ATM rebates.

From 1 August, the bank will no longer refund any third-party ATM operator fee incurred overseas.

The bank will still provide rebates and waivers for currency conversion fees, own bank overseas ATM fees and domestic third-party ATM fees (the last two of which are capped at five per month in total) for customers that meet the bank’s monthly condition to deposit at least $1,000 into the account and make five transactions per month. Customers with this account also receive up to $100 cashback on their utilities bills per year.

ING’s decision to scrap the popular rebate is likely to exasperate many travellers who rely on the account to dodge costly ATM operator fees when overseas. This move follows on from the closure of Citi’s popular travel accounts – the Global Currency and Multi Currency accounts, which will be shut down next month as part of the acquisition by NAB.

While two of the market leaders have taken a step back, there are still a number of accounts that offer some fee waivers when using money overseas.

RateCity.com.au analysis shows:

• 8 banks have at least one transaction account that offers no currency conversion fees
• 10 banks have at least one transaction account that waives their own bank’s international ATM fee.

RateCity.com.au research director, Sally Tindall, said: “This move from ING is likely to frustrate many of the bank’s loyal customers who’ve had the luxury of not having to worry about overseas ATM fees for years.”

“ING’s decision to stop refunding third party ATM fees is a real blow for travellers with this account, who will now have to plan how and where they access their cash on holidays,” she said.

“Australians accessing cash overseas using their regular bank account are often slugged with three fees in one hit – a currency conversion fee, a fee from their own bank and a fee from their ATM provider. On a $500 withdrawal that can add up to $25 or $30 in fees, sometimes even more.

"While from 1 August, no bank will rebate those often-excessive ATM operator fees overseas, there are still a range of banks waiving their own ATM and currency conversion fees.

“Before you head to the airport, think about how you’re likely to pay for things and how much cash you’ll need. While many popular holiday destinations will let you tap for almost anything, in others, cash is still king.

“A $5 or $10 dollar fee might not seem like much when you’re busy enjoying your holiday, but if you need cash regularly you could find you’ve shelled out over $100 in the space of two weeks.

“Australians looking for a new bank account should weigh up the options available against what suits their lifestyle and be sure to read the fine print.

“If the rules and requirements of your bank account are sending you grey, consider finding one that fits in with your lifestyle rather than turning yourself into an contortionist just to fit in with it.

“That said, many ING customers will be happy to stick with this transaction account in order to unlock access to the bank’s 5 per cent ongoing savings rate,” she said.

Bank accounts with perks

Source: RateCity.com.au.

Big four bank transaction accounts

Source: RateCity.com.au.

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