3 December 2009
Westpac customers invited to visit any of NAB’s 750 branches
National Australia Bank announced today it would increase its home loan interest rates by 0.25%, the same amount the Reserve Bank of Australia moved the cash rate on Tuesday. NAB’s new standard variable rate will be 6.49% per annum.
NAB’s announcement comes after Westpac announced earlier this week it would increase interest rates on its home loan products by 0.45% pa – almost double the RBA cash rate increase. Today’s announcement will see NAB customers paying $51 a month less in repayments than Westpac customers on an average $300k home loan.
This is another example of NAB’s pursuit to build better relationships with Australians, a journey it embarked on earlier this year by abolishing fees on a range of personal savings and transaction accounts and credit card products.
Lisa Gray, Group Executive NAB Personal Banking, said she encouraged Westpac customers to take a fresh look at NAB as the evidence was mounting – NAB’s changing the game.
"We are determined to be competitive, to offer our customers a better deal and attract new customers to NAB. Today we are sending a message to customers at Westpac, and the other banks, that NAB can offer them a better deal," Ms Gray said.
"We led the industry by abolishing overdrawn fees on personal transaction and savings accounts and by getting rid of over limit fees on NAB credit cards. We also led the industry by abolishing the $4 and $5 monthly account service fees on NAB’s most popular everyday personal transaction accounts: Classic and e-Banking.
"NAB has offered the cheapest standard variable interest rate amongst the major banks for the past six months and the new rate of 6.49% pa is likely to remain unbeaten amongst the major banks.
"We have been very considered with this announcement given funding costs and the cost of raising deposits continue to fluctuate and are expected to increase further. However we believe that improving our reputation and relationships with our customers and the community is core to the long term sustainability and success of our business.
"While we are monitoring the increase in funding costs, we will continue to absorb these in the short term but will maintain our focus on making responsible business decisions," Ms Gray said.
NAB will increase its home loan and a range of consumer deposit interest rates on Friday, 4 December 2009. NAB will also increase interest rates on a range of business deposit and variable business lending products by 0.25% pa, effective Monday, 7 December 2009.
Home loan comparisons
|Home Loans||NAB||New rate (From 04/12/09)||Westpac||New rate (From 04/12/09)|
|Standard variable home loan interest rate||NAB Tailored Home Loan||6.49% pa||Westpac Rocket Repay Home Loan Westpac Premium Option Home loan||6.76 % pa 6.76 % pa|
|Packaged home loan variable interest rate||NAB Choice Packages - $250k+||5.79% pa||Westpac Premier Advantage package - $250k+||6.06 % pa|
NAB’s leadership position on bank fees
Main bank fees abolished or cut by NAB:
- Abolish $4 and $5 monthly account service fees on NAB’s most popular everyday personal transaction accounts: Classic and e-Banking (effective January, 22 2009)
- Abolish $30 overdrawn account fees on all personal transaction and savings accounts (effective September 1, 2009)
- Abolish $25 over-limit fee on all NAB credit cards (effective December 4, 2009)
- Cut $30 late payment fee on all NAB credit cards to $5 (effective December 4, 2009)
Other bank fees abolished effective January 22, 2010:
- Abolish $3 branch withdrawal and $1 cheque withdrawal fees on e-Banking accounts
- Abolish $6 monthly account service fee on Clear Banking accounts
- Abolish monthly account service and transactions fees on Passbook accounts
- Abolish monthly account service and transaction fees on 7 other transaction accounts
|Luisa Ford||Gillian Griffiths|
|NAB Corporate Affairs||NAB Corporate Affairs|
|M: +61 (0) 411 024 104||M: +61 (0) 419 667 783|