NAB Classic Banking cost-cutting is rewarded

A cost-cutting exercise on National Australia bank accounts could reap rewards after it was nominated for a prize.

The National Australia Bank's (NAB) cost-cutting on its bank accounts has put it in the frame for an accolade.

The NAB Classic Banking account has been nominated for a CHOICE award for the best low fee bank account.

It has made some changes to its nominated service, as well as other NAB transaction accounts.

An abolishment of its $4 and $5 monthly fees on both the e-banking and classic accounts and the discarding of SMS banking fees are some of the changes that have been implemented.

If a customer goes overdrawn on one of its savings accounts they no longer have to pay the previous $30 penalty fee.

And nearly all (97 per cent) of NAB transaction account customers have had their monthly service fees waivered or discarded.

This comes after John Kavanagh, writing for the Sydney Morning Herald, said earlier this week that the fees banks put on a transaction account are "well entrenched".

By Bret Clement