ANZ and Westpac Banks have announced they will be removing the ATM fee they charge customers for using another bank's ATM in New Zealand, the company's announced today.

ANZ Bank sign Source: 1 NEWS

ANZ and Westpac New Zealand customers don't pay any ATM fees to use an ATM owned by their bank, but they are charged a fee for using another bank's ATM. Most other banks have a similar fee.

"In recent times we've been getting more and more feedback from our customers that they don’t think this type of fee is fair.

"Because even though they're using another bank's ATM they're still accessing their money," said Antonia Watson, ANZ New Zealand managing director retail and business banking.

"We've decided to respond to that feedback and will absorb the cost of those transactions levied to us by other banks," she said.

Westpac NZ general manager of consumer banking and wealth, Simon Power, said the bank continued to listen to feedback from its customers.

"We want to give customers the freedom to use our competitors' ATMs without worrying about what sort of fee they might be charged," he said.