NAB praised for rate cuts

Steps by National Australia Bank (NAB) to remove fees across its bank account and credit card products should be followed by other banks, it has been claimed.

Moves by National Australia Bank (NAB) to abolish or reduce a number of fees across its bank account and credit card portfolio have been commended.

Although all four of the country's major banks - which also include Westpac, Commonwealth and ANZ - have taken steps to lower fees in recent months, NAB has received particular praise from Choice for removing its $25 overdrawn charge on credit cards.

Furthermore, the consumer group highlights NAB's scrapping of account-keeping fees on two of its products.

However, Elissa Freeman, senior policy officer for Choice, claims that the remaining three giants of the Australian banking industry should follow the bank's example in scrapping fees, particularly overdrawn charges as banks do not incur any financial burden when consumers go over their account's limit.

Commenting on the bank's removal of fees, personal banking group executive Lisa Gray states that it will give the lender "a real competitive advantage".

Due to come into effect on January 22nd 2010, some 860,000 customers will be affected by the fee removal changes.

Posted by Nate Sawyer