Friday, 8 February 2008
National Australia Bank has announced new interest rates on a range of products and will introduce a new clear home loan to give customers greater choice.
Home loan interest rates The interest rate on a number of popular NAB fixed rate home loan products will be reduced by 0.11%. Four and five year fixed rate products will now be 8.18%.
The interest rate on NAB variable home loan products will change by 0.29% in response to the recent RBA announcement and increased wholesale funding costs. NAB's standard variable rate will be 8.98%.
NAB Executive Director and CEO Australia, Ahmed Fahour, said the changes were designed to balance the needs of customers as well as shareholders.
"Unfortunately, the current environment means that the RBA cash rate does not reflect the true cost of funding a home loan anymore," he said.
"Even with this additional 0.04% change on variable rate products NAB is continuing to absorb a significant portion of the increased wholesale funding costs we have incurred since August 2007."
Variable rates on business loans will increase by 0.29% effective Monday 11 February.
No exit fees with clear home loan Following NAB's commitment last year to move away from exception fees and offer greater choice, better value and more simplicity in banking, Mr Fahour said NAB would also launch a clear home loan with no exit fees.
"Last year NAB launched a market leading range of smart everyday banking accounts including the NAB Clear Banking Account for deposit customers who don't want to pay exception fees," he said.
"The clear home loan is yet another step that will address customer, government and community concerns about fees and provide a truly different home lending option."
The clear home loan will be available later this year.
Deposit interest rates The bonus interest rate on NAB's Smart Reward Saver and Smart Junior Saver products will increase by 0.30% effective Monday 11 February.
At the same time NAB will increase rates on a number term deposit blackboard specials these will include five months at 7.20% and eight months at 7.30%. Two year term deposits will be available at 7.60%, which is an increase of 0.30%.
"Increased interest rates on NAB's deposit products reflect our continued desire to attract a strong deposit base and benefit customers who want to build their savings," Mr Fahour said.
Media contact: Rebekah Miles National Australia Bank M: 0400 541 139
Brandon Phillips National Australia Bank M: 0419 369 058
* 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