Photo: © 2009 AFP/AAP/TORSTEN BLACKWOOD

New research by The Australia Institute shows families are being hit with excessive ATM and account keeping fees and unfair interest rates.

On top of that, we are paying more at the checkout, as businesses pass on the costs of the fees they are paying the banks.

"Something is wrong when banks and governments keep talking about how badly banks behave but do nothing to change it," the Finance Sector Union's Leon Carter told the Herald Sun.

But the Australian Bankers Association has rejected the research, saying banks make their money from other areas like superannuation, insurance and offshore activity.

The big four banks boasted collective profits of around $35 billion last year.