Commonwealth Bank shifts 1.5M customers into no-fee bank accounts

• Commonwealth Bank will move 1.5 million customers into no-fee bank accounts following a regulatory directive.
• Affected customers will save on account fees and avoid interest charges on informal overdrafts under the five-year determination.
• The corporate watchdog mandated the changes to help eligible Australians access lower-cost banking products and avoid unnecessary fees.

Commonwealth Bank of Australia (ASX:CBA) will transition 1.5 million customers into basic no-fee bank accounts following a final determination issued by the Australian Competition and Consumer Commission.

The regulatory action alters previous banking practices where lenders could require eligible account holders to actively request lower-cost options.

"The conditions imposed by the ACCC require banks to offer eligible new customers basic, low or no-fee accounts," the corporate watchdog said in a statement.

Under the new rules, the bank must proactively identify existing customers who qualify for the accounts and transfer them automatically unless they choose to opt out.

The bank intends to comply with the five-year determination by conducting annual reviews to identify and contact eligible account holders.

Following the announcement, the Commonwealth Bank share price was up at $178.20.