Some Commonwealth Bank customers who withdraw cash at branches or post offices will soon be charged $3 for the privilege, after the bank announced it was migrating a legacy everyday account to a newer offering.

After announcing a controversial plan to charge customers a fee to access their own cash, Commonwealth Bank has backflipped on the decision following fierce backlash.

We feel we didn’t get the communication right on this, so we’ve paused, and we want to take a different approach.”

Australia's biggest bank has paused its plans to charge customers a $3 fee to withdraw their own money at bank branches around the country, a day after it was announced.

Commonwealth Bank of Australia scrapped plans to charge customers a fee to withdraw cash at branches and on the phone within a day of announcing a policy that drew criticism from the government.

The Commonwealth Bank will “change its approach” after its plan to charge some customers $3 to withdraw cash from a branch sparked national fury.

Commbank Australia has announced a change to its users' accounts that will see a withdrawal charge added from next year.

The Commonwealth Bank will begin slugging many of its customers $3 for assisted cash withdrawals from next year when it closes their accounts and moves them on to new products. The major bank has revealed it will be closing and moving customers from their Complete Access accounts to Smart Access accounts on January 6.

The Commonwealth Bank has backed down from a controversial plan to move some customers to an account charging a $3 fee to withdraw cash at its branches. The development comes after Treasurer Jim Chalmers intervened,

Facing a backlash, the bank has paused a move that would have led to about 50,000 extra customers charged for withdrawing cash from branches.