Sunday, 31 January 2010
National Australia Bank announced today it would not increase its standard variable home loan interest rate by more than any increase to the cash rate announced by the Reserve Bank of Australia at its February Board Meeting on Tuesday.
NAB's standard variable home loan interest rate is currently 6.49% per annum – the best rate amongst the major banks.
In December 2009, NAB was the only major bank not to move its standard variable home loan interest rate by more than the RBA cash rate, seeing its customers $68 per month better off than customers of other major banks with an average $300k home loan.
Lisa Gray, Group Executive NAB Personal Banking, said first and foremost after not raising rates above the RBA increase in December, NAB wanted to reassure its customers the bank would not increase rates above any RBA move in February.
"We want to give our customers a clear understanding of what to expect from NAB, should the RBA choose to lift the cash rate in February. We know there are two main things that many bank customers worry about prior to the monthly RBA meetings: firstly will the RBA raise the cash rate; and secondly will their bank lift interest rates by even more than the RBA.
"Whatever the RBA decides on Tuesday, we want to reassure our customers that in February NAB will not increase interest rates above any RBA decisions.
"We are determined to continue being competitive and deliver NAB customers fairer value banking," Ms Gray said.
Last year NAB Group CEO, Cameron Clyne, outlined NAB would be working harder to improve its relationships with customers and the community.
Mr Clyne identified bank fees, transparency on interest rates and improving access to financial services for the disadvantaged as three key areas the bank would look to improve its performance and the way it is viewed in the community.
NAB has led the industry by abolishing a number of its most disliked bank fees. Just last week NAB also announced it will abolish a range of business bank fees which will benefit more than 500,000 business account holders.
This follows the removal of overdrawn fees on personal transaction and savings accounts, over limit fees on NAB credit cards and monthly account service fees on NAB's most popular everyday personal transaction accounts. In addition, NAB recently doubled its ATM network to provide greater access for NAB and rediATM customers - also saving them over $10 million a year in direct charge fees.
Luisa Ford Head of Corporate Affairs NAB Personal Banking mob: 0411 024 104
Gillian Griffiths Corporate Affairs Manager NAB Personal Banking mob: 0419 667 783