NAB Scraps Overdraft Fees Saving Customers Almost $1 Billion A Year

The NAB (National Australia Bank) has made a surprising announcement to remove their overdraft fees. The announcement has been well received by the Australian public who can save close to $1 billion per year.

The $30 fee currently active is imposed on each customer who overdraws their savings account or transaction limits. It will be scraped come October this year.

Around 700,000 customers of the bank will be able to benefit from this decision. The NAB’s Lisa Gray said getting rid of the charge is a good business decision that will retain customers and attract new ones. She said: “I think it’s up to other banks to decide what they want to do. We feel though this makes us very competitive and it tells customers and Australians that we’re serious about this and that we’re prepared to do very sensible things.”

A spokesperson from Choice (a consumer group) said this will allow the National Australia Bank to be very competitive if other banks won’t follow suit.

Mr. Zinn said: “The NAB is really showing leadership to the rest of the banking community, showing ‘we can afford to live without these fees, they have given us a bad name, it’s an unsustainable model.”

“The figure’s out of the bag as to this massive take of $971 million. We believe that it would be really unlikely that the [other] banks would be able to carry on with these fees.”

He further stated credit card fees need axing too. He said: “Credit cards are as much a part of most people’s normal banking as transaction accounts. Again, it’s a similar system – there are very high charges [for something] that comes at a very small cost to the bank.”

“Just because you might be a day late paying your credit card bill, does that really mean that the bank faces a fee of $35? Of course not.”

Meanwhile Aussies can rejoice at saving a potential $30 a month with the axing of the overdraft fees. It will help many families in their plight to keep their heads above financial turmoil and can go a long way in saving interest on home loans or putting more food on the table. Either way, the decision is certainly welcomed by all.

Source: ABC.net.au

Comparison of our Top Credit Card Offers

		Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual Fee	Cash Advance Rate (p.a.)
Citibank Clear Platinum Card	A low interest rate offer on balance transfers and purchases	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	An introductory offer on balance transfer and a low annual fee	13.24%	0.99% for 12 months	$55	21.49%
Virgin Flyer Credit Card	Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers	20.99%	1.9% for 9 months	$99	20.99%
Westpac 55 Day Credit Card	No annul fee for the first year with a low rate on balance transfers and purchases	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
ANZ Frequent Flyer	An exclusive bonus points offer, Plus extended warranty, overseas travel and medical insurance,90 day purchase security insurance.	19.74%		$95	20.99%