National Australia Bank (NAB) announced today it would be abolishing more bank fees on customer accounts.
Fees to be abolished include current $4 and $5 monthly account service fees on NAB’s most popular everyday personal transaction accounts: Classic and e-Banking.
There is no asterisk, no disclaimers and no rule requiring customers to make a minimum monthly deposit. The fees will be abolished with effect from January 22, 2010.
Monthly account service fees are one of the most unpopular fees charged by banks, and commonly cost customers between $3 and $10 a month, or up to $120 a year.
More than 860,000 NAB customers will benefit from the decision to abolish these fees.
Today’s announcement means monthly account service fees will be abolished or waived for around 97% of all NAB personal transaction account customers.
Monthly account service and a range of transaction fees will also be abolished on 10 other transaction and savings accounts with effect from January 22, 2010.
This will mean the only personal transaction account with a monthly account service fee will be NAB’s premium Gold Banking product which provides extra benefits like purchase protection, overseas travel insurance and no NAB fees on overseas transactions.
NAB is also taking the following actions on credit cards effective December 4, 2009:
- Abolishing the $25 over limit fee on all credit cards;
- Cutting credit card late payment fees from $30 to $5; and
- Introducing a free opt-in SMS payment reminder service to alert customers when credit card payments fall due.
Over limit and late payment fees on credit cards currently impact around 750,000 NAB customers a year. After overdrawn account fees, which NAB abolished earlier this year, they are the fees bank customers complain about the most.
NAB Personal Banking Group Executive, Lisa Gray, said: “It is important to NAB that we improve our relationship with customers. Continuing to act to get rid of the bank fees customers tell us they think are unfair will certainly help this.
“We also believe this will benefit our business by making NAB even more competitive. We want our customers to have stronger relationships with us, and we want to attract new customers to the Bank.
“Getting rid of these fees, especially the monthly account service fee will benefit our customers; give NAB a real competitive advantage; and allow NAB’s people to spend more time with customers on the things that really matter to them.
“As we said when we abolished overdrawn account fees, today’s decision is final. There are no disclaimers and we won’t be recouping these fees anywhere else.
“It’s a good decision for our business because it is the right thing for our customers,” Ms Gray said.
Earlier this year NAB Group CEO Cameron Clyne outlined NAB would work harder to improve its relationships with its 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.
In July this year NAB also announced the abolition of all overdrawn account fees on NAB personal transaction and savings accounts.
The annual revenue impact of today’s announcement is around $110 million.
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, 2010)
- 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 as part of today’s announcement, 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
NAB Corporate Affairs
M: +61 (0) 411 024 104
NAB Corporate Affairs
M: +61 (0) 0419 667 783