Thursday, 6 March 2008
National Australia Bank has announced new interest rates on a range of products.
Home loan interest rates The interest rate on NAB’s variable home loan products will change by 0.29% in response to the recent Reserve Bank of Australia (RBA) announcement and increased wholesale funding costs. NAB’s standard variable rate will be 9.27%, effective Friday, 7 March 2008.
NAB Executive Director and CEO Australia, Ahmed Fahour, said: “We have a responsibility to balance the needs of our shareholders as well as our customers.
“Escalating wholesale funding costs have been impacting NAB since August 2007. During February this year, the cost of both short and long term wholesale funding rose to their highest levels in a decade.
“Unfortunately this means the increase in the RBA’s cash rate by 0.25% does not reflect the true cost of funding a home loan. Even with the additional 0.04% change on variable rate products, NAB is continuing to absorb a significant portion of the increased wholesale funding costs,” Mr Fahour said.
“We are continuing to watch the market closely and will adjust our rates further if the increased wholesale funding costs do not subside.”
Mr Fahour said while it was difficult to predict what the future holds with wholesale funding costs, NAB would maintain its commitment to responsible lending and continue to take steps to help new home loan customers avoid financial stress.
“Before approving a home loan we take steps to help our customers avoid financial difficulties. We assess their ability to meet regular repayments, their ability to cope with minor changes in circumstance and their ability to cope with changes to the broader economic environment.
“We also continue to offer a range of competitive fixed rate home loans for customers concerned about the prospect of future rate rises and, as announced in February, we are developing a new clear home loan with no exit fees for customers wanting greater choice, better value and more simplicity in banking,” he said. Deposit interest rates The bonus interest rate on NAB’s Smart Reward Saver and Smart Junior Saver products will increase by 0.30% effective Friday, 7 March 2008.
At the same time NAB will increase rates on a range of internet term deposit blackboard specials, including three months at 7.70%, six months at 7.85%, 12 months at 8.00% and the two year blackboard term deposit to 8.20%. These rates will be effective, Monday, 10 March 2008.
“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.
For further information:
Kerrina Lawrence Ph: +61 3 8641 3409 M: +61 (0) 417 034 738 Brandon Phillips Ph: +61 3 8641 3857 M: +61 (0) 419 369 058
* 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