Banks set to cut cash machine fees

THE COST of withdrawing cash from another bank's machines is set to fall by about 20%, potentially saving account-holders an estimated €600m a year in fees.

The Autorité de la Concurrence has reached a new agreement with banks to cut the fees they charge each other by 21% - from €0.72 to €0.57 per withdrawal.

It expects that the savings will be passed on to consumers.

Most French banks charge account-holders a fee of up to €1 per withdrawal if they routinely take cash out at a machine not belonging to their bank.

In many cases the first five withdrawals per month are free - and there are no fees at all charged by the Banque Postale and online-only banks.

The inter-bank fees for paying with a debit or credit card in a shop will also drop by an average of 36%. This could encourage more retailers to accept cards for small transactions, instead of imposing a €10 or €15 minimum spend.

Photo: Delphimages - Fotolia.com