Simple steps to avoid fees and charges on transaction accounts

There are a number of fees that may be charged to your transaction account that can easily be minimised or avoided.  The following points will help you understand what types of fees are commonly incurred, why they are charged, and how to avoid them.

Five tips to avoiding fees

1. Understand what you are being charged and why
2. Check that you’re using the right account for your banking needs
3. Know and maintain your account balance
4. Use unlimited, fee-free transactions and NAB electronic, Telephone and Internet Banking
5. Always use NAB branded ATMs

1. Understand what you are being charged and why

What fees are typically charged and why?  
Our transaction accounts have a flat monthly service fee¹. 

- For $4 per month, NAB eBanking allows you to manage your day-to-day banking through NAB Telephone Banking, NAB Internet Banking, ATMs, EFTPOS and NAB Visa Debit.

- For $5 per month, NAB Classic Banking allows you to manage your day-to-day banking through the use of cheques, NAB branches, NAB Internet Banking, NAB Telephone Banking, ATMs, EFTPOS and NAB Visa Debit.

- For $12 per month, NAB Gold Banking allows you access to non-NAB ATMs in Australia and overseas, and management of day-to-day banking through the use of cheque and NAB branch access, as well as NAB Internet Banking, NAB Telephone Banking, ATMs, EFTPOS and NAB Gold Visa Debit.

The monthly account service fee will be waived if deposits for the month reach the set minimum amounts. For NAB eBanking customers, if $2,500 is deposited into the account in a month, the monthly account service fee will be waived. For NAB Classic Banking the minimum amount to deposit is $3,500. For NAB Gold Banking customers, the minimum amount to deposit is $5,000.

Branch deposits are free regardless of the smart everyday account that is held.

In addition, other fees can be incurred for example through:
-overdrawing your account
-using a non-NAB ATM (unless you have a NAB Gold Banking where the monthly account service fee covers you for unlimited non-NAB ATM access)
-branch withdrawals (unless you have a a NAB Classic or NAB Gold Banking Account, where the monthly service fee covers you for unlimited branch withdrawals)
-using cheques (a NAB Classic or NAB Gold Banking Account, where the monthly service fee covers you for unlimited cheque use)
-accessing your account while overseas (unless you have NAB Gold Banking where the monthly account service fee covers you for overseas services)
-additional service requests (e.g. Bank cheques, additional printing of statements)

¹ Please note that some of NAB’s older style accounts, NAB FlexiAccount and before 1 June 2007, NAB FlexiDirect operate differently than our flat-fee accounts. These are ‘pay-as-you go’ style account where it is important to track the number of transactions you make.
² From 1 June 2007, FlexiDirect Accounts will follow the same flat monthly fee structure.

What if I don’t have a flat-fee account?
Our older style transaction accounts, NAB FlexiAccount and before 1 June 2007, NAB FlexiDirect (both no longer for sale), are ‘pay-as-you-go’ style accounts.  With these accounts it is important to be aware of the number of transactions you make if you want to minimise fees.  All deposits are free, but withdrawals and transfers are charged per transaction and the fee depends on the channel you use, for example transacting via NAB Internet Banking is cheaper than a branch withdrawal.

Details of the fee structure for these accounts can be found in A Guide to Fees and Charges – Personal Banking Fees.   If you make a lot of transactions in a month, then you may save on fees by moving to a NAB smart everyday account, which allows you to enjoy a flat monthly service fee and may cater better to your banking needs.  You can switch to a new smart everyday account by advising your branch or calling 13 22 65. 

How are fees charged?
Monthly service fees (for the previous month's service) are due on the last business day of every month and are deducted from your account soon after that.  Fees charged to (or waived from) your account are listed in your statements and are also listed in your NAB Internet Banking and NAB Telephone Banking transaction history. It is a good idea to read your statement carefully to understand all the fees that have been charged.

Are you aware you can overdraw your account?
You can apply for an overdraft for most transaction accounts, which will let you overdraw your account to an approved limit.  Some transactions will also overdraw your account even if you don’t have an approved overdraft.  When you overdraw your account without an approved overdraft you will be charged interest and may incur a fee.

What happens if you overdraw your account without an approved overdraft?
If you overdraw your account without an approved overdraft, NAB may at its discretion choose to honour the transaction (meaning it will be allowed to go through). If NAB honours the transaction you will be charged a $30 fee called a reference fee. If NAB dishonours the transaction (meaning NAB does not allow the transaction to go through), a $50 dishonour fee or a $35 periodical non-payment fee is charged. You will also be charged interest when you overdraw your account (as this is in effect a loan). Interest will be charged at the default interest rate.

How can I avoid these overdrawn service fees?
The most common way people overdraw their account is by not allowing for a cheque that they have written to clear (that is yet to be presented or deposited), or by not taking into account a direct debit or periodical payment that is due to be drawn. 
To avoid a situation where your account is overdrawn, it is important to:
-check your account balance regularly – be wary of balances at non-NAB ATM’s, where delays between different Bank systems may mean the balance shown is not current;
-know when direct debits or periodical payments will withdraw funds from your account - or consider cancelling them, or changing the date to ensure they happen just after you receive your pay;
-make sure you have the funds to cover any unpresented cheque when it is presented; and
-wait for cheques you have received to be cleared before you count on using the funds, sometimes they may be dishonoured due to insufficient funds.

If you think that you may need to overdraw your account from time to time you can apply for an overdraft on most accounts. Terms and conditions are available on application. Fees and charges are payable. Subject to normal lending criteria. 

Are you aware NAB offers a personal overdraft for most transaction accounts?
An overdraft lets you overdraw your account to an approved limit and can be applied for with most transaction accounts.  For an overdraft you pay an overdraft line fee, which is charged twice a year and varies depending on the limit you have approved.  For up to $1,000 this fee is $35 each half year.  If you require a limit of less than $40,000 there is no application fee to have an overdraft.  You will also be required to pay interest on the overdrawn funds. 

What’s the difference between a periodical payment and a direct debit?
A periodical payment is a reoccurring payment that you set up yourself.  If for example you need to pay rent on the same day each month, you can use internet or telephone banking or speak to staff in our call centre or branch to have the transaction paid automatically on the same day each month.  You can make any changes to this payment or cancel it yourself through internet or telephone banking, or by speaking to a staff member.  If you don’t have enough funds for a periodical payment to go through, you will be charged a periodical payment non-payment fee of $35.

A direct debit is a payment established through a particular merchant, for example to take up a gym membership you might fill out a form authorising the gym to deduct a monthly fee from your account each month.  The gym will then draw the direct debit from your account each month.  If you don’t have enough funds for a direct debit to go through you will be charged a dishonour fee of $50.

What are the pros and cons of periodical payments and direct debits?
Because you are the one dealing directly with the Bank for a periodical payment these are often easier to manage.  You can make changes or cancel them if and when you like.  On the other hand, a direct debit is an arrangement between the merchant and the Bank and these can be harder to change or cancel.

What is the process for cancelling a direct debit?
To make changes or cancellations to a direct debit you need to speak to the particular merchant.  For example, if you have a direct debit arranged for your monthly gym membership that you wish to cancel, then you need to speak directly with the relevant gym.

Please note, while it is best to arrange a cancellation directly with the merchant, NAB can place a 15 month stop on a direct debit arranged to your transaction account. After we’ve placed the stop on the direct debit we will contact the merchant’s Bank to inform them no further payments can be drawn and the merchant should cancel the arrangement.  You will need to speak to a NAB staff member and complete a form to arrange this.  A direct debit arranged to your credit card account cannot be suspended, cancelled or changed through NAB.  You have to make changes directly with the merchant.

Can I stop my account from overdrawing?
If you feel there is a risk that your account may be overdrawn from time to time you can request to have this facility switched off by speaking to your banker, or by calling 13 22 65.  However, this would mean that if you inadvertently overdrew your account the transaction would not be allowed (or dishonoured) and a $50 dishonour or a $35 periodical payment non payment fee would be charged.

You need to consider whether you may prefer the risk of unintentionally overdrawing your account and paying the interest and $30 reference fee associated with this, versus having important transactions like rent or utility bills not be allowed through and being charged a $50 dishonour fee.

Can bank fees overdraw my account?
Bank fees can overdraw your account.  A fee is not charged if this happens but you will be charged interest.  You can only attract a reference, dishonour, or periodical payment non payment fee as a result of customer initiated transactions.

Can I get more than one reference fee in one day for overdrawing?
No, you can only attract one reference fee per day. This fee is charged the business day after the day the account became overdrawn.

Are there problems with cheques?
With NAB eBanking each cheque withdrawal costs $1¹.  If you find you really need a cheque facility, it is a good idea to plan your banking and, if you find you do write two or more cheques per month, choose NAB Classic Banking where cheque withdrawals are included within the $5 monthly service fee.

Cheques are also one of the most common ways people overdraw their accounts.  If you are using cheques make sure you budget for all cheques that you have written - some people might take a while before they deposit them and the money is drawn from your account later than you make allowance for.  Deduct the amount of any unpresented cheque from your balance to make sure you have the funds to cover the cheque when it is presented.

¹ After 1 June 2007 FlexiDirect Accounts will also incur a $1 charge for each cheque withdrawal.

Will I get charged for coming into a branch?
If you have NAB Classic Banking, your monthly account service fee covers unlimited branch withdrawals or transfers at branches – so you will not be charged additional fees for coming into a branch. However, additional services can incur extra fees.

If you have a NAB eBanking or after 1 June 2007, a FlexiDirect Account, branch transactions incur a fee of $3.  All branch deposits are free.

What fees are charged when I use my transaction account overseas?
Our debit cards are compatible with the PLUS ATM network overseas, allowing you to access your money at over 950,000 ATMs worldwide.  However, be aware that there is a $4 withdrawal fee at these ATMs and a $1 fee for balance enquires* (unless you are a NAB Gold Banking customer).

In addition, a foreign currency transaction fee exists for withdrawals made in currencies other than Australian dollars (2% of Australian dollar transaction amount).  Exchange rates are calculated by Visa who operates the PLUS network.  Individual ATM providers may also impose their own additional charges.

*These fees do not apply to any account to which a NAB Flexiplus Mortgage facility has been attached to, or accounts that form part of a NAB Choice Package or Private Tailored Package.

What fees are charged for additional services?
Often customers request additional services at their branch which may incur a fee. The most popular additional service request and associated fees are as follows:

For more information, please refer to NAB’s brochure on A Guide to Fees and Charges – Personal Banking Fees.

Do you know that you can print a free mini-statement that will show your last eight transactions at a NAB ATM?

2. Check that you’re using the right account for your banking needs

Are you using the right account?
By looking at your transaction statement and learning about your banking patterns, you can decide whether you are using the most suitable account for your personal needs.  If you often use cheques or make transactions at a branch you could be better off changing to an account that allows you to use these facilities without incurring fees.  For example, the NAB Classic Banking might be best for you with its $5 monthly flat-fee including unlimited cheque and branch access.

However, if you rarely use cheques but rely more on electronic transactions, then you can opt for the NAB eBanking account which has a monthly flat-fee of $3 for unlimited NAB electronic transactions¹.

Also, certain facilities such as adding a cheque book to your account, or adding overdraft facilities, could end up costing you more because of the associated fees.  Consider whether you need these additional facilities and how often you use them. If you do not need them, remove them and reduce your fees. You might also be eligible for a NAB Concession Card Account, NAB Classic Banking with monthly account service fee waived for full-time tertiary students or a NAB Retirement Account. If you qualify for these accounts you can enjoy the great benefits, including no monthly account service and NAB transaction fees

Please note that some of NAB's older style accounts, NAB FlexiAccount and before 1 June 2007, NAB FlexiDirect operate differently than our flat-fee accounts. These older accounts are ‘pay-as-you go’ style accounts where it is important to track the number of transactions you make if you want to minimise fees. If you make a lot of transactions in a month, then you may save on fees by moving to one of our smart everyday accounts, which allows you to enjoy a flat monthly service fee and may cater better to your banking needs.

¹ From 1 June 2007, NAB FlexiDirect, which is no longer for sale, also has a monthly flat-fee of $3 for unlimited NAB electronic transactions.

What different types of accounts are available and what sort of fees do they incur?
To find out more details about NAB’s on-sale transaction accounts, and their fees, please click here or go to NAB’s brochure on A Guide to Fees and Charges – Personal Banking Fees, this brochure also contains information about NAB's off-sale accounts.

Are you a student, retiree, pensioner or concession card holder?
Find out if you are eligible for a NAB Concession Card Account , NAB Classic Banking with monthly account service fee waived for full-time tertiary students or a NAB Retirement Account. If you qualify for these accounts you can enjoy the great benefits, including no monthly service and NAB transaction fees.

Do you have too many accounts?
Spreading your money over a number of accounts means you will be incurring more monthly service fees.  To save money, you may be able to consolidate your accounts and transfer funds to your preferred NAB account. 

How do I close an account?
To close an account you need to visit your local branch.

3. Know and maintain your account balance

Why is it important to know my account balance?
It is important to know your account balance so that you can avoid overdrawing on your account and incurring additional fees for this.

With a smart everyday account you can check your account balance free of charge via NAB ATMs, Internet Banking, Telephone Banking, as well as your regular printed statements delivered by mail.  Using a NAB ATM, you can also print a free mini-statement that will show your last eight transactions. After 1 June 2007, FlexiDirect accounts will also operate in this way.

Note that there is a charge for these services if you have a NAB FlexiAccount.

When checking your account balance, be aware that you need to take into account transactions that are yet to be drawn from your account – such as unpresented cheques, direct debits or periodical payments.

Do you know about our fee waiver for depositing certain minimum amounts into your everyday account each month? 
The monthly account service fee will be waived if deposits for the month reach the set minimum amounts. For NAB eBanking customers, if $2,500 is deposited into the account in a month, the monthly account service fee will be waived. For NAB Classic Banking the minimum amount to deposit is $3,500. For NAB Gold Banking customers, the minimum amount to deposit is $5,000.

4. Use unlimited, fee-free transactions and NAB Electronic, Telephone & Internet Banking

What transactions do not incur a fee and are unlimited?
All NAB smart everyday accounts offer unlimited electronic transactions inclusive in the monthly account service fee charged. This includes EFTPOS, NAB ATM transactions, NAB Telephone Banking and NAB Internet Banking transactions.  All deposits also do not incur an additional fee and are unlimited.

NAB Classic Banking offers unlimited cheque and branch access in the monthly account service fee. NAB Gold Banking offers all types of transactions including access to non-NAB ATMs.

5. Always use NAB branded ATM’s

Why should I always use a NAB branded ATM?
If you are not a NAB Gold Banking customer, each time you use a non-NAB branded ATM it is costing you $2.00 – even if you are simply checking your account balance. Always make sure you use one of our many conveniently located ATM’s and you will save on fees.

Where is my nearest NAB ATM?
To find your nearest NAB ATM, go to our ATM locator.

For further information:
How do I find out more about all fees and charges?
More information about fees and charges that apply to NAB accounts is included in our brochure
A Guide to Fees and Charges – Personal Banking Fees.

Who should I contact if I have a complaint about a fee?
If you have any issues you wish to raise with NAB, or if you have suggestions on how we can improve, there are four ways you can contact us.