Fee cuts 'improve NAB customer satisfaction'

Removing bank account fees appears to have paid off for one financial services firm.

The chief executive of one leading Australian banking institution has pointed out the fall in customer complaints his organisation has received.

Since National Australia Bank (NAB) made the decision to scrap the monthly fees charged to its bank accounts, chief executive Cameron Clyne reveals a significant drop in the number of consumers filing grievances with the firm.

In comments made at NAB's annual shareholder meeting, ABC News reports Mr Clyne as stating customer complaints have dropped 40 per cent in the first month that the charges were abolished.

"We think it's a very sustainable strategy to retain more of your own customers, attract more of your competitors and have a much better relationship with your customer," he claims.

Aussies wishing to compare accounts may also be interested to hear NAB scrapped the $25 overlimit fee charged across its entire credit card portfolio at the start of this month.

By Emma North