NAB drops more fees

NAB leads the Big Four pack, becoming the first bank to provide fair fees.
 
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  • Updated:15 Oct 2009
 

01.NAB drops more fees

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In a huge win for consumers, the National Australia Bank has become the first of the Big Four banks to offer consumers fair fees.

NAB will abolish its unpopular monthly account-keeping and credit card penalty fees on a range of accounts, saving customers about $110 million in fees annually. This latest move follows a campaign for fair fees  from CHOICE and the Consumer Action Legal Centre, and adds to NAB’s fee cuts on overdrawn personal transaction and savings accounts announced in July.

“NAB has broken rank with its peers by showing leadership and a real commitment to their customers in making this decision,” says CHOICE Senior Policy Officer, Elissa Freeman.

“They are now the frontrunner amongst the Big Four, and if the other banks want to remain competitive they’ll need to review their fees again.”

According to Freeman, there has been real momentum in the area of penalty fees in the past three months, but points out that while ANZ, CBA and Westpac have tweaked some of theirs, only NAB has got rid of them altogether.

From 22 January 2010, monthly account-keeping fees and fees will be dropped from a range of NAB accounts. The credit card fees will be abolished from 4 December this year.

In 2008, Australian households paid $415 million in penalty fees on credit cards. The penalties range up to $50 and apply to late payments or exceeding credit card limits.

Today’s announcement means that since July, approximately $850 million in fee cuts will have been delivered to bank customers.

Freeman says now is the time for customers to review their bank’s fees switch to a fairer bank if they’re not up to scratch.

The table below shows the new fees that apply, in some cases from December (see table notes).  

BankDishonourOverdrawn accountCredit card late paymentCredit card over limit
ANZ
$6 (A)
$6 per day (A)
$20 (A)
$20 (A)
Commonwealth
$5
$10
$25
$25
National Australia
$0
$0
$5 (B)
$0 (B)
St George
$9
$9
$9
$9
Westpac
$9
$9
$9
$9

Table notes

  • Source: the banks’ websites.
  • Dishonour fee applies to periodic payments, direct debits and cheque payments from your account that are rejected due to insufficient funds.
  • (A) From 15 December 2009.
  • (B) From 4 December 2009.
 
 

 

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