NAB changes home loan and deposit interest rates
Tuesday, 4 May 2010
Following the Reserve Bank of Australia’s Board Meeting today, National Australia Bank confirmed its standard variable home loan interest rate and a range of deposits would increase by 0.25% per annum, in line with the RBA’s increase to the official cash rate.
NAB’s new standard variable rate will be 7.24% pa, effective Friday, 7 May 2010.
Lisa Gray, Group Executive NAB Personal Banking, said NAB was focused on a long term commitment to providing a fairer value exchange to customers.
”We’re delighted our fair value philosophy is starting to pay dividends given we’re seeing more home loan customers join NAB than we’ve seen in years,” Ms Gray said.
“In February and March, we outgrew financial system in home lending - the first time we’ve had two consecutive months of growth above system since mid-2005.
“We attribute this to two factors: firstly, by providing Australians with highly competitive interest rates – including the best standard variable home loan interest rate of the major banks for 11 consecutive months; and secondly for committing to stand for something different. Our fight against unfair banking is getting noticed and Australians are signing up to join us,” Ms Gray said.
NAB will also increase interest rates on its Homeside products and a range of consumer deposits from 7 May 2010 as well as a range of business deposit and variable business lending products from 10 May 2010.
| Consumer Deposits | Current rate | New rate (From 7/5/10) |
| NAB iSaver | 4.00% pa | 4.25% pa |
| NAB iSaver Introductory Rate (accounts opened 14/4/10 to 30/6/10)1 |
5.75% pa | 6.00% pa |
| Home Loans | Current rate | New rate (From 7/5/10) |
| NAB Tailored Home Loan (standard variable rate) |
6.99% pa | 7.24% pa |
| Choice Packages - $250k+ (packaged variable rate) |
6.29% pa | 6.54% pa |
NAB’s overall funding costs are expected to remain high in 2010, driven mainly by the rising average cost of term wholesale funding and higher retail deposit costs. NAB takes this forecast into consideration in all interest rate decisions.
1 Refer to nab.com.au for terms and conditions.
The key drivers of NAB's cost of funds
Notes to Editor:
- NAB’s standard variable home loan rate has been the market leader since June 2009.
- NAB standard variable interest rate customers with an average $300k home loan have been up to $68 per month better off than customers of other major banks – saving up to $335 since the December 2009 rate changes became effective.
- NAB was the only major bank not to go above the official cash rate rise in December 2009.
Media contacts:
Luisa Ford, NAB Corporate Affairs – M: 0411 024 104
Gillian Griffiths , NAB Corporate Affairs – M: 0419 667 783
