1 Quarterly interest is paid at the end of March, June, September and December.
Different rates may apply to different levels of your account balance (rates may also fluctuate). These levels of account balance and the rates applicable to them are notified to you at the time you open your account. Rates are detailed in NAB's flyer 'Indicator Rates – For Deposit Products' and in the page headed ‘Indicator Rates – Deposit Products’ set out at nab.com.au This rate information forms part of these terms and conditions.
For NAB Retirement Account a separate rate may be applicable to each tier of the credit balance of your account (for which rates may fluctuate).
NAB Reward Saver account – Bonus Interest
4.2 Subject to clauses 4.3 and 6, NAB may also pay bonus interest calculated on the daily credit balance of your account as at the end of each day (AEST/AEDT) up to and including the day before the last banking day of each month and if applicable will credit the interest to your account the next banking day.
4.3 NAB may pay bonus interest on your account when you make at least one deposit to your account in the month and no withdrawals in the month. Any bonus interest paid is in addition to the base interest earned on your account.
4.4 To determine whether bonus interest is payable:
(a) the month is defined as:
i) commencing on the day your account is opened, and then subsequently the first day of each month thereafter; and
ii) ending on the second last banking day of each month; and
(b) at least one deposit must be made to your account on or before the second last banking day of the month; and
(c) any deposit made on the last banking day of the month is excluded.
If you make any withdrawals in a month you will not earn bonus interest on your account.
4.5 If you close your account or vary the account type before the end of the month, your account will not receive any bonus interest for the month.
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5 Overdrawn accounts
5.1 If your account is overdrawn without an approved overdraft limit (or beyond the amount of any approved overdraft limit), you must put the account in credit (or within the amount of the limit) within seven days.
5.1A You must monitor your account to ensure that it does not become overdrawn. You can check your balance at any time at nab.com.au or by using telephone banking. We may, in our absolute discretion, authorise a transaction that overdraws your account. If you do not rectify an overdrawn account within seven days, and the overdrawn account persists for 60 or more days, we may report that to a credit reporting body in accordance with the Privacy Act 1988. This may affect your ability to obtain credit in the future.
5.2 You will pay NAB interest1 at the default rate applicable to personal accounts on the overdrawn amount and for the period of time your account remains overdrawn. The default rate is set out in NAB's flyer 'Indicator Rates – Deposit Products' and in the page headed ‘Indicator Rates – Deposit Products’ set out at nab.com.au You will be notified of any change to the default rate. It is also available from NAB.
5.3 Interest is calculated on the daily debit balance of your account as at the end of each day (AEST/AEDT) (up to and including the day before the last banking day of each month) and will be charged to your account on the last banking day of each month. When determining the end of day balance on your account for the purpose of calculating interest, transactions which occur on non-banking days (eg. NPP Payments made or received on a non-banking day) are treated as having been made on the next banking day and will be recorded on your statement as having occurred on that next banking day. So, your end of day balance for a non-banking day will be the same as the end of day balance for the preceding banking day.
1 Default interest will not be payable where there is a NAB FlexiPlus Mortgage limit or NAB Portfolio Facility/NAB Private Portfolio Facility Limit or any other approved NAB overdraft facility limit which is operated through the account.
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6 NAB 100% Offset arrangement and NAB Portfolio Facility 100% Offset arrangement
Am I eligible for a NAB 100% Offset arrangement, and if so, how do I apply?
NAB 100% Offset arrangement
How will a NAB 100% Offset arrangement change my deposit account?
6.1 You may apply to NAB to participate in the NAB 100% Offset arrangement. NAB may accept or reject your application at its discretion.
6.2 The NAB 100% Offset arrangement is only available on certain deposit and loan accounts specified by NAB. Unless NAB otherwise agrees, only one loan and one deposit account can be linked to the NAB 100% Offset arrangement.
6.3 An offset arrangement may not link a loan account with a deposit account which includes a name or names other than the name(s) in which the loan account is held.
6.4 While you have an offset arrangement, the following relevant terms override the provisions relating to the calculation and payment of interest applying to:
(a) any linked deposit account, except while this account has a debit balance; and
(b) your linked loan account, except if the credit contract relating to the linked loan account contains specific provisions relating to the calculation and payment of interest while you have an offset arrangement. If the exception applies, then those specific provisions, in addition to others, apply in respect of your linked loan account while you have an offset arrangement.
How will an offset arrangement change my deposit account?
6.5 While you have an offset arrangement, any linked deposit account will not earn any interest even if the credit balance of your account exceeds, or if there is more than one linked deposit account, the total credit balances of those accounts exceed, the unpaid balance of your linked loan account.
6.6 You or NAB may end the offset arrangement by giving seven days' notice to the other. However, if you default under your linked loan account, NAB may end the offset arrangement immediately by giving you a notice to this effect.
6.7 It is your responsibility to monitor the credit balance of the linked deposit account, or if there is more than one linked deposit account, the total credit balances of those accounts, as against the unpaid balance of your linked loan account to achieve the best results for you under the offset arrangement.
How will NAB 100% Offset change my loan account?
6.8 The daily interest charges which would otherwise be payable on a day under your linked loan account will be calculated by deducting the credit balance of the linked deposit account from the unpaid balance of your linked loan account at the end of the day (AEST/AEDT) and then applying the daily rate (being the annual percentage rate divided by 365) to the result.
When determining the end of day balance on your account for the purpose of calculating interest, transactions which occur on non-banking days (eg. NPP Payments made or received on a non-banking day) are treated as having been made on the next banking day and will be recorded on your statement as having occurred on that next banking day. So, your end of day balance for a non-banking day will be the same as the end of day balance for the preceding banking day.
6.9 If the credit balance of the linked deposit account exceeds the unpaid balance of your linked loan account at the end of a day, no interest will be charged under the loan for that day.
NAB Portfolio Facility 100% Offset arrangement
Am I eligible for a NAB Portfolio Facility 100% Offset arrangement, and if so, how do I apply?
6.10 NAB offers the NAB Portfolio Facility 100% Offset arrangement for certain types of accounts if you have a NAB Portfolio Facility or a NAB Private Portfolio Facility (the 'credit contract'). NAB may accept or reject your application to participate in the offset arrangement at its discretion. Contact NAB to find out whether the arrangement is available and to request to participate in it.
6.11 If you wish to apply to enter into a NAB Portfolio Facility 100% Offset arrangement, you must nominate one account, and may nominate up to 10 accounts, with credit balances including sub accounts under the credit contract with credit balances ('credit balance accounts') to be linked to one or more nominated sub accounts with an unpaid balance under the credit contract ('nominated loan account'). This is provided that:
(a) a variable interest rate applies to the nominated loan account;
(b) the accountholder of the credit balance account is the accountholder of the nominated loan account but, for the avoidance of doubt, an offset arrangement may not link a nominated load account with any credit balance account which includes a name or names other than the name in which the nominated loan account is held;
(c) a credit balance account may only be linked to one nominated loan account at a time; and
(d) each nominated loan account and its linked credit balance accounts together constitute an 'offset arrangement'.
How will a NAB Portfolio Facility 100% Offset arrangement change my accounts?
6.12 While you have a NAB Portfolio Facility 100% Offset arrangement, the following terms and conditions override the provisions relating to the calculation and payment of:
(a) interest on any credit balance account under an offset arrangement (except while it has an unpaid balance); and
(b) interest charges on the unpaid balance of any nominated loan account, except if the credit contract contains specific provisions relating to the calculation of interest while you have an offset arrangement. If the exception applies, then those specific provisions, in addition to others, apply in respect of your nominated loan account while you have an offset arrangement.
6.13 NAB calculates the daily interest charges on the unpaid balance of a nominated loan account under a NAB Portfolio Facility 100% Offset arrangement by:
(a) deducting the credit balance of the credit balance account, or total credit balance if there is more than one credit balance account, from the unpaid balance of the nominated loan account; and
(b) applying the daily interest rate (being the interest rate divided by 365) to the result.
If the total of the credit balance of the credit balance account exceeds the balance owing on the nominated loan account, then no interest charges are payable for that day.
When determining the end of day balance on your account for the purpose of calculating interest, transactions which occur on non-banking days (eg. NPP Payments made or received on a non-banking day) are treated as having been made on the next banking day and will be recorded on your statement as having occurred on that next banking day. So, your end of day balance for a non-banking day will be the same as the end of day balance for the preceding banking day.
6.14 While you have any NAB Portfolio 100% Offset arrangement, any credit balance account under the offset arrangement will not earn interest even if the credit balance of that account exceeds, or if there is more than one such account, the total credit balances of those accounts exceeds, the unpaid balance of the nominated loan account under that offset arrangement.
6.15 If NAB agrees to your request to participate in a NAB Portfolio Facility 100% Offset arrangement, then:
(a) you may request to vary your participation in an arrangement at any time; and
(b) you or NAB may cancel your participation by giving seven days' notice to the other.
6.16 If you default under the credit contract, NAB may cancel your participation immediately on giving you notice. Any NAB Portfolio Facility 100% Offset arrangement:
(a) may be terminated if you terminate the credit contract; and
(b) is immediately terminated if the credit contract is cancelled.
6.17 It is your responsibility to monitor the credit balance account as against the unpaid balance of your nominated load account to achieve the best results of the offset arrangement for you.
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7 Payment facilities
7.1 Cheques
NAB provides cheque access to certain accounts. These accounts are listed in the Product Comparison Table. If you have cheque access to an account, the following terms and conditions apply:
7.1.1 General provisions
(a) Each cheque must be completed properly and with due care so as to avoid fraudulent alteration and in accordance with the signing authority you give NAB.
(b) When a cheque is drawn on your account, it will, when the cheque is handed to NAB:
(i) be deemed to be a request by you to NAB to withdraw funds from your account for the amount shown on the cheque; and
(ii) NAB will pay those funds to the payee, endorsee, holder, bearer, depositor or presenter of the cheque or that person's bank.
(c) If there are not enough 'cleared funds' in your account when the cheque is presented for payment, NAB may dishonour or pay the cheque at its discretion. This may result in your account being overdrawn.
(d) The person signing the cheque must:
(i) sign any alterations;
(ii) date the cheque with the date on which it was signed; and
(iii) complete the details.
(e) You must notify NAB immediately on 13 22 65 if you have any cause whatsoever to suspect that a cheque drawn on your account has been forged or fraudulently altered in any way or has been drawn in whole or in part without authority from you.
(f) You must take reasonable care and precautions to prevent unauthorised, stolen, forged or fraudulently altered or drawn cheques being presented to NAB.
(g) You must keep cheque forms issued to you in a safe place and you must notify NAB immediately on 13 22 65 if they are lost, stolen or misused.
(h) NAB may pay a cheque drawn on your account, even though it is a stale cheque within the meaning of the Cheques Act 1986.
(i) NAB may pay a post dated cheque drawn on your account at any time before the date of the cheque arrives.
7.1.2 Stopping payment on a cheque
(a) You may stop payment on a cheque before it has been paid by providing the cheque details required by NAB. To stop payment, immediately notify NAB by;
(i) calling NAB on 13 22 65; or
(ii) notifying any NAB branch either in person or by phone.
(b) If you advise NAB by phone, your written confirmation may be required.
(c) NAB may charge a fee for stopping payment on a cheque, the amount and nature of which are detailed in NAB's brochure 'A Guide to Fees and Charges – Personal Banking Fees'.
7.1.3 Dishonouring cheques
Your cheque may (at NAB's discretion) be returned unpaid or 'dishonoured' in certain circumstances, such as where:
(i) there are not enough available funds in your account or your overdraft limit is not enough to cover the cheque;
(ii) there is some irregularity or omission with your cheque, for example your cheque is unsigned, is more than 15 months old, has a date that has not yet arrived or has been materially altered (e.g. by a change for the amount originally stated on it) and you have not signed the alteration;
(iii) you have instructed NAB to stop payment of your cheque; or
(iv) NAB has received notice of your mental incapacity or of your death.
7.1.4 Crossing Cheques
(a) A cheque with two parallel lines across it, with or without the words 'not negotiable' written between them, is a crossed cheque. When you cross a cheque, you are telling the bank that the cheque must be paid into an account with a financial institution and not cashed. If NAB does cash the cheque, it may be liable for any loss suffered by the true owner.
(b) A crossing may be added by you when you make a cheque or by any person who obtains possession of your cheque.
7.1.5 'Not Negotiable' cheques
The words 'not negotiable' between two parallel lines across the face of a cheque mean that, where the cheque is transferred, the person who obtains the cheque has no greater rights than the person who transferred it to him or her.
For example, your cheque might be stolen and then passed on by the thief to another person. That person might then obtain payment of the cheque. In this case, if the cheque was crossed and marked 'not negotiable', the person from whom the cheque is stolen might recover the amount of the cheque from the person who obtains payment of the cheque, even though the person who has obtained payment may not have done anything wrong.
7.1.6 'Account payee only' cheques
(a) If you write the words 'account payee only' on a cheque, you are warning the bank with which the cheque is deposited that the cheque should be paid only to the person named in the cheque as payee.
(b) The words 'account payee only' do not prevent the transfer of a cheque.
7.1.7 'Or bearer' or 'order' cheques
(a) The words 'or bearer' (except where the cheque is crossed), mean that a bank may pay the cheque to whomever is in possession of the cheque, not only the person named on the cheque, even if that person found or stole it, unless NAB has reason to suspect that the cheque might have fallen into the wrong hands. If you delete these words, the cheque becomes an 'order' cheque.
(b) If the cheque is an 'order' cheque, then (except in cases where the cheque is crossed and must therefore be collected by a bank) the bank on which the cheque is drawn should only pay it:
(i) to the named payee; or
(ii) to any other person to whom the named payee, by endorsing the cheque on the reverse side, has ordered it to be paid.
7.1.8 Unauthorised alteration of your cheques
(a) When you write a cheque, you should take care to reduce the opportunity for forgery and fraud. You have a duty to complete the cheque so as not to mislead NAB or make it easy for someone else to alter your cheque.
(b) Ways to assist you to correctly complete a cheque are:
(i) do not leave gaps between the words or figures;
(ii) begin the amount in words as close as possible to the left hand side;
(iii) begin the amount in figures as close as possible to the dollar sign ($);
(iv) never write a cheque in pencil or ink that can be rubbed out;
(v) never sign a cheque before it is used or filled out; and
(vi) always write the amount of the cheque in words as well as figures, because words are harder to alter without your authority.
7.1.9 When is a cheque 'cleared'?
(a) You should allow a minimum of three banking days for a cheque that is deposited into your account to clear, after which time the funds are available to you.
(b) Normally you will not be able to withdraw the value of a cheque you deposit until the cheque is cleared, even though your account will be immediately credited with the proceeds of the cheque. This rule also applies to cheques made payable to 'cash'.
(c) If a cheque you have deposited is dishonoured NAB will advise you. NAB will also reduce the balance of your account by the amount of the cheque already credited.
7.1.10 Special clearance
You can arrange for a cheque to be cleared in less than the usual time by requesting a special clearance. Special Clearance fees are detailed in NAB's brochure 'A Guide to Fees and Charges – Personal Banking Fees'.
7.1.11 Third Party cheques
If you present a cheque which is payable to someone else or it appears to belong to someone else (third party cheque), NAB may, in its discretion, refuse to accept that cheque for deposit or refuse to cash it or may require you to comply with some conditions before it will accept that cheque for deposit or cash it.
7.1.12 Bank cheques
Bank cheques are cheques instructing payment from the bank itself rather than from a customer's account. They are designed to provide an alternative to carrying large amounts of cash when a personal cheque is not acceptable.
Bank cheques are usually requested because of the higher likelihood that they will be paid. However bank cheques should not be regarded as equivalent to cash.
Bank cheques can be purchased by NAB and non-NAB customers and a fee is charged. A bank may dishonour a bank cheque if:
a) the bank cheque is forged or counterfeit;
b) the bank cheque has been fraudulently and materially altered;
c) a fraud or other crime has been committed;
d) the bank is told the bank cheque has been lost or stolen;
e) there is a court order restraining the bank from paying a bank cheque;
f) the bank has not received payment or value for the issue of the bank cheque; or
g) a bank cheque is presented by a person who is not entitled to the cheque proceeds.
If a bank cheque is lost or stolen, NAB will, on certain conditions provide a replacement cheque for a fee.
7.2 Direct Debits
You may make regular payments to a third party (Debit User), by authorising the Debit User to debit your account with NAB. For eligible accounts refer to the Product Comparison Table.
7.2.1 General provisions
(a) The Debit User will provide you with their direct debit request agreement. Only Debit Users approved by a financial institution can make these arrangements on your behalf.
(b) The Debit User request may provide for the debiting of your account with any amount charged by the Debit User. You may, however, be able to limit the amount or ask that the charging be delayed until after the issuing of a billing advice to you. These arrangements are between you and the Debit User.
7.2.2 Disputed Debits
(a) You must notify NAB as soon as possible if you suspect or believe that an amount debited to your account was unauthorised or otherwise irregular. Either visit your branch or call a Customer Service Representative on 13 22 65.
NAB will promptly process your instruction.
(b) If you lodge a written claim with NAB regarding a disputed amount, you should receive a response within seven banking days.
(c) NAB suggests you also contact the Debit User. This may be especially helpful if you believe that an incorrect amount has been debited to your account.
7.2.3 Cancellation of direct debit authority
(a) You may cancel your direct debit arrangements with a Debit User by calling NAB on 13 22 65 or visiting your branch and completing a cancellation request. If you advise NAB by phone, your written confirmation may also be required.
NAB will promptly process your instruction and stop further debits to your account. NAB will advise the Debit User of your request to cancel the authority. NAB suggests you also contact the Debit User. This may be especially helpful when resolving complaints about incorrect charges.
(b) To arrange for a direct debit by the Debit User to be resumed on your account, you will need to contact the Debit User and you will also need to contact NAB and cancel the stop payment.
7.2.4 Non-payments
(a) If there are insufficient cleared funds in your account to meet a direct debit payment, NAB may dishonour or pay the debit at its discretion. This may result in your account being overdrawn. In this situation, you may be charged default interest in accordance with clause 5.
(b) You must monitor your accounts to ensure that you have sufficient funds to meet your direct debit arrangements. NAB will not notify you if a debit is dishonoured or otherwise not made.
7.2.5 Multiple authorities
(a) If you have more than one direct debit arrangement with a Debit User on your account and you cancel one arrangement, this will automatically stop all debits from your account by that Debit User.
(b) To arrange for other direct debits to continue on your account, you will need to contact the Debit User. You will then need to contact NAB and cancel the stop payment to allow the Debit User to continue to debit your account.
7.3 You must check your statements
Without limiting any part of these terms and conditions, you must promptly review your statement of account to check for and tell NAB of any transaction recorded on your statement that you suspect for any reason you did not authorise or for which the information recorded is incorrect. Failure to promptly report unauthorised transactions may increase your liability.
7.4 Indemnity
In the absence of a breach of any obligation owed to you, NAB will not be liable for any loss that you incur:
(a) if NAB refuses to allow payment of a cheque or direct debit in good faith in the ordinary course of business; or
(b) if a stop payment request is given too late to enable payment to be stopped; or
(c) if NAB suffers any loss as a result of acting on your instructions in relation to a cheque or direct debit (such as processing a request to cancel a direct debit arrangement or stopping payment on a cheque or direct debit); or
(d) as a result of you breaching any obligation you have in this clause.
Where NAB pays funds or suffers any loss under this clause, you must indemnify NAB. NAB will debit your account for the relevant amount.
7.5 PayID and Osko Payments
You can register a PayID, and make and receive Osko Payments and other NPP Payments from certain account types. For eligible accounts, refer to the Product Comparison Table.
Part F sets out additional terms and conditions in relation to PayID, Osko and NPP Payments.
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8 How is the operation of the account governed?
8.1 Each accountholder is authorised to operate the account alone unless an authority is provided to NAB which specifies who is authorised to operate the account and whether they may do so alone or jointly.
8.2 When an accountholder authorises a person under clause 8.1, that person is authorised to do all of the following things:
(a) give instructions in relation to cheques, withdrawals, periodical payment/debit authorities and, where nominated by the accountholder, electronic NAB services;
(b) overdraw the account(s) to any extent permitted by NAB (NAB will treat casual overdrafts as applications for credit);
(c) place money on term deposit, purchase certificates of deposit and receive repayment and interest;
(d) sign, draw, make, accept, endorse, discount or make arrangements with NAB regarding bills of exchange, bank cheques, orders and other instruments;
(e) give instructions about or otherwise deal with documents conferring a right to or insuring goods;
(f) receive boxes, packets, deeds or documents;
(g) apply for encashment/negotiation facilities and letters of credit upon terms acceptable to NAB, including the giving and enforcing of security and relieving NAB from liability;
(h) enter into contracts with NAB for the sale or purchase of foreign currencies by NAB or NAB correspondents;
(i) provide guarantees indemnities or declarations protecting NAB in relation to (i) missing documents conferring a right to or insuring goods; (ii) guarantees or undertakings by NAB in its favour or on its behalf; (iii) letters of credit; (iv) repurchase by NAB of bank / international cheques and other instruments;
(j) Create a PayID in relation to the account and provide instructions in relation to the maintenance of that PayID, including to transfer the PayID to another account and to lock or close the PayID.
8.3 In respect of any authority provided to NAB under clause 8.1, NAB may elect not to follow any instructions given under the authority if:
(a) it's not satisfied that the person giving the instruction has authority (for example, if NAB is not satisfied that the signature on the instruction matches the specimen signature held);
(b) in its opinion, the instructions are not clear;
(c) NAB cannot authenticate or validate any information or documents relating to the account or service, a person who is authorised to transact on it, or the transaction; or
(d) NAB is notified of a dispute between joint accountholders (in which case NAB may require all joint account holders or directors to sign any authority to operate this account).
8.4 In respect of any authority provided to NAB under clause 8.1, NAB may, by giving notice, override the authority and require that all or specific future transactions must be authorised by all accountholders
8.5 Any authority provided to NAB under clause 8.1 does not prevent NAB from complying with other valid accountholder instructions.
8.6 In relation to transactions to or from the account, you authorise NAB to disclose and collect information (including personal information) to and from other financial institutions, to the extent NAB considers this reasonably necessary.
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9 What conditions apply to joint accounts?
9.1 If there are two or more of you, you will be treated as holding the account jointly and NAB may accept for credit to your account any cheque, payment order or bill of exchange that is not payable to all of you. This means that each accountholder has the right to all of the balance of the account, jointly with the other accountholders.
9.2 If any of you die, the account will be treated as the account of the survivor or survivors jointly.
9.3 Unless any of you request otherwise, NAB statements and notices (including notification of any variation to these terms and conditions) will be forwarded to the address of the first of you named on your account. In the absence of evidence to the contrary, you will all be deemed to have received any NAB statements and notices forwarded in accordance with the terms and conditions in this booklet. If we are legally obliged to, we will send statements and notices for each NAB FlexiPlus Mortgage account and each NAB Portfolio Facility/NAB Private Portfolio Facility sub account to each accountholder.
9.4 A joint accountholder may only make a withdrawal on the terms of any authority to operate on the account. If NAB is notified of a dispute between joint accountholders, NAB may require all joint accountholders to sign any authority to operate the account.
9.5 The liability of accountholders under an account held in joint names is joint and several. This means each and all of the accountholders are liable for the whole of any debit balance on the account.
9.6 Subject to any authority provided under clause 8.1, any one of the joint accountholders is authorised to open additional joint accounts or take out additional joint services.
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10 NAB's right to combine or set-off accounts
NAB can combine or set-off the balance of two or more of any type of accounts, credit facilities or other products held by the accountholder with NAB, even if they are held at different branches or in joint names. This may happen when one of the accountholder's accounts is overdrawn or is in debit and another is in credit. For example, the credit balance in one account can be used to repay the debit balance in another account. NAB will promptly inform you if it has exercised this right and NAB need not give you notice in advance. The accountholder does not have a right of combination or set-off unless NAB has agreed.
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11 NAB's right to combine or set off accounts
NAB may close your account at any time at its discretion. NAB will give you notice before closing your account, unless the account has a zero balance or is overdrawn at the time of closure. Where your account has a credit balance, before it is closed we will either take reasonable steps to return the balance to you or, where the relevant statutory requirements have been met, we may transfer the balance to the Commonwealth Government as unclaimed money.
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11A Mistaken internet payments
If you receive a mistaken internet payment into your account NAB may be required to act in accordance with the ePayments Code. NAB's obligations under the ePayments Code are described in 51A.2 of Part E of this booklet in the paragraph "Our obligations if we are notified about a mistaken internet payment".
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About this booklet
