This is how bank fees increased in 2024

According to the recent annual report of the Financial Sector Advisory Committee (CCSF), bank fees increased in 2022, 2023 and 2024, but moderately. This report, based on an analysis as of April 5, 2024, reveals variable price increases depending on the services and banks, although these increases remain lower than general inflation.

Rising account maintenance fees

Thus, seven of the fourteen banking services studied saw their prices increase. For example, account maintenance fees increased by 5.81%, while the provision of an international debit card increased from 3.24% to 3.29%. Occasional transfers made in branches also recorded an increase of 5.04%. According to INSEE, the prices of banking services increased by 3% between June 2023 and June 2024, compared to 2.2% for general inflation over this same period. Over a two-year period, from June 2022 to June 2024, the increase in bank rates (+2.9%) however remains lower than that of general inflation (+6.8%). A trend which is also observed over a longer period, from June 2014 to June 2024.

One of the points to watch is the evolution towards free instant SEPA transfers. Some banks have already started to offer them free of charge, but this trend has not yet been generalized to all establishments. This service, which seems particularly appreciated by customers, could become a standard in the years to come.

Finally, the Banking Tariff Observatory also notes a gradual reduction in tariff differences between overseas territories and France. This rebalancing is, however, due to greater price increases in mainland France, and not to any downward trend or harmonization of costs.

Overseas Operations Can Be Expensive

The report also takes a long look at users who travel. For them, banking operations abroad represent a significant part of the costs when they are not in France. The vast majority of banking establishments (94 out of 100) apply a commission proportional to the amount of foreign currency transactions, between 1% and 3%. Among these banks, 67 add a fixed commission ranging from 0.20 to 2.20 euros. For a payment of 100 euros in a European Economic Area (EEA) country, the fees can range from 1.25 euros to 5.10 euros, with an average of 2.52 euros. These costs include not only bank fees, but also currency conversion fees applied by payment networks (Visa or Mastercard). These use a different exchange rate to that of the European Central Bank (ECB), which may result in additional costs for consumers.

For withdrawals abroad, the situation is similar. Of the 100 establishments studied, only five offer free foreign currency withdrawals (BoursoBank, Monabanq, Ma French Bank, Fortuneo Banque and Crédit Mutuel Océan). The vast majority (93 banks) apply a commission proportional to the amount of the withdrawal, varying between 1% and 3%, and 89 of them add a fixed commission of between 1.50 euros and 5.85 euros. For a withdrawal of 100 euros in an EEA country, the fees vary between 1.50 euros (Hello bank!) and 8.25 euros (Crédit Agricole Val de France), with an average of 5.35 euros. These fees are due to the payment network, the issuing bank, and sometimes the operator of the automated teller machine (ATM).

For customers with frequent international needs, several banks now offer service bundles (OGS), that is to say packages including free or reduced-price payments and withdrawals in foreign currencies. These offers are generally offered in the form of monthly subscriptions, sometimes accompanied by commitment conditions. For example, La Banque Postale offers unlimited payments in foreign currencies in its OGS intended for young people at a cost of 2 to 4 euros per month. At Crédit Agricole, a Globe-Trotter option at 2 euros per month gives the right to payments and withdrawals in foreign currencies. High-end offers, such as that of Crédit Agricole (27 to 36 euros per month depending on the bank) or the Cristal Premium of Banque Populaire (21.10 euros per month), include unlimited payments and withdrawals in foreign currencies. Conversely, certain online banks present in the study, such as Fortuneo Banque with its Fosfo offer, offer these services free of charge.

Efforts in favor of vulnerable customers

Despite these increases, the report also highlights the efforts of banks in favor of customers in financially fragile situations. A notable drop in the prices of the specific offer (OCF) intended for these customers was observed. As of April 5, 2024, of the 99 establishments offering an OCF offer, 97 charge this offer at 1 euro per month or less, including 8 offering free. In addition, 56 establishments have completely eliminated incident fees for customers benefiting from this offer.

However, the report does not really answer the question of the effectiveness of these measures in lastingly improving the financial stability of said fragile customers. Although the fees are reduced, these offers do not modify the criteria for access to credit or the authorized overdraft limits, aspects which could better help this clientele in the long term. Furthermore, the report does not provide data on the proportion of people actually benefiting from these measures or on their real impact, for example in terms of reducing payment incidents or lasting exit from financial fragility.

Finally, for so-called “non-fragile” customers, incident fees, particularly in the event of overdrafts or payment rejections, remain high in most banking establishments.

Some holes in the racket

Although it provides valuable data, this report still has some fairly clear limitations. It mainly focuses on credit institutions and banks that operate under French regulation. Certain neobanks like Revolut or N26 are therefore put aside, even though they offer competitive banking services, particularly for payments abroad. These players frequently offer free foreign currency payments and reduced fees for international withdrawals.