I can do money transfers using my online banking account for free and in an instant for as long as they are within the same bank. But this will soon change as my bank has a new policy where they would start charging even bank to bank online fund transfers. With bitcoin, anything that doesnt cost over a dollar for transactions below $100 for me is fair, just as long as the transaction speed is almost instant or faster than they currently are. Fees should also be bracketed according to amounts to be transferred, but shouldnt be too high so as not to turn off potential users who would otherwise just use the money transfer services elsewhere.
Yes that's exactly what I thought - it should be under $1 once you get over it most people would probably reject it straightaway.