A Consumer Council survey has found most banks have raised their service charges, with many items surging up to 100% on 2006 levels, despite a minimal deposit interest rate.

The study on 22 banks last month showed the increases were related largely to low-balance and inactive accounts, returned cheques and auto payouts, issuance of cashier's orders and gift cheques, and account closures within three months.

All but three banks imposed a minimum balance requirement ranging from $2,000 to $30,000, with most requiring a minimum balance of $5,000. The monthly low-balance account service charge stood at $25 to $200, compared with $10 to $200 in 2006.

All but two banks imposed service charges on inactive accounts, with nine raising the fees from 6.7% to 100%. Customers failing to maintain an account for three months after opening will be levied up to $500, up 200%.

On returned cheques due to insufficient funds, 17 banks raised their service charge from $110 to $150 per cheque, up 8.3% to 50%. The charge for cheques returned for reasons other than insufficient funds rose 33.3% to 66.7%, while returned auto payouts rose 8.3% to 50%.

Fourteen banks have raised charges on cashier's orders from 25% to 50%. Two banks raised their service fees on gift cheques.

The survey found there was an overall increase in the total number of bank branches from 1,209 to 1,299, or 7.4%, from May 2006 to last April. About 95% of the banks offered free Internet banking services.

The council urged the industry to provide convenient branch banking services and fee waivers to the disadvantaged and those with little IT knowledge.

People can merge accounts in different banks to boost the total balance to avoid low-balance account fees, perform transactions through e-banking, or use banks that waive low-balance charges.