NAB increases interest rates on youth savings accounts

Thursday, 16 April 2009

National Australia Bank has reviewed its decision to reduce the interest rate on its youth savings accounts and today announced it would increase the rates by 0.25% pa, effective 17 April 2009.

Overview:
NAB Smart Junior Saver: NAB Smart Reward Saver:
  • Base interest 1.00% pa
  • Bonus interest 1.35% pa
  • Total rate: 2.35% pa
  • Base interest 0.01% pa
  • Bonus interest 2.60% pa
  • Total rate: 2.61% pa

Warren Shaw, Executive General Manager, NAB Personal Banking said the bank had a role to play in guiding young people in saving for the future and therefore had reversed its decision to reduce the interest rates on its youth savings accounts.

“There is no doubt that the community has focused our attention on our decision to change our youth account interest rates. We have listened, we acknowledge this is one we needed to review and we have reversed our decision.

“We recognise that during these difficult times it is important that children are encouraged to develop good savings habits and therefore we have increased the interest rates for these products,” Mr Shaw said.

NAB takes a number of factors into consideration when making pricing decisions, including the official cash rate, the cost of funds and the competitive landscape. In particular, cost of funds continue to be high as cheaper debts mature and are replaced with more expensive money. This money is used to fund home loans and interest earnings for consumers.

NAB’s deposit rates continue to be some of the most competitive in the market with its key blackboard term deposit rates increasing this week by 0.10% pa. NAB’s 4 month blackboard term deposit rate is 3.50% pa and 12 month rate is 3.40% pa. NAB also offers one of the most competitive standard variable home loan interest rates of all the major banks.

Media contact:

Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges