NAB Abolishes Fees On Everyday Accounts

Post by Sharat on October 15, 2009 · Under Business News, Online Savings Account, banking, credit cards · Comment

Australian banking major National Australia Bank (NAB), has announced the abolishment of monthly account service fees for two of its everyday banking accounts effective from January next year. The lender will also scrap the $25 fee for exceeding the limit of its credit cards.

NAB said it will end account service fees for both its Classic and e-Banking personal transaction accounts from January 22nd 2010. The fees cost $4 and $5 respectively. NAB said it would also cease levying monthly service and transaction fees for 10 other unspecified transaction and savings accounts.

NAB will also reduce charges for credit card customers who exceed their credit limit and for late payment by $25 to $5 for all credit cards effective December 4th.

The move will affect more than 860,000 NAB customers. Lisa Gray NAB’s personal banking group executive said that the fee cut came with no strings attached.

“Today’s decision is final. There are no disclaimers and we won’t be recouping these fees anywhere else,” she said in a statement on Thursday.

“There is no asterisk, no disclaimers and no rule requiring customers to make a minimum monthly deposit,” NAB said.

The move will cost NAB approximately $110 million in lost revenue from the charges, and follows NAB’s decision to also scrap its $30 overdrawn account fee for personal accounts which occurred earlier in the year.

Despite the abolishment of charges, NAB said it would continue charging fees for use of ATM’s.

NAB’s direct charge for non-NAB customers is $1.50 for a cash withdrawal or advance, and 50 cents for a balance enquiry.

All of Australia’s major lenders have made reductions or cut exception fees on personal accounts, with some changes yet to take effect.

Ms. Gray said the decision by NAB to abolish its overdrawn fees had resulted in the lender gaining new customers, and gave it a competitive advantage over rivals.

NAB is also reviewing fees for all business customers and will announce its decision this year, Ms. Gray added.

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