National Australia Bank (NAB) has announced that it is to scrap a number of bank fees on customer accounts with effect from January 22, 2010.
Customers with NAB's Classic and e-Banking accounts will no longer be charged current $4 and $5 monthly account service fees. Some 860,000 NAB account holders are set to benefit from the decision and the changes could mean savings of up to $120 per year.
The move comes as a part of a broader effort to reduce charges which began when NAB Group CEO Cameron Clyne identified bank fees, transparency on interest rates and improving access to financial services for the disadvantaged as three key areas the bank would look to improve its performance.
The changes are in addition to a range of other fee changes set to come into effect on 4 December 2009. These include the scrapping of the $25 over limit fee on all credit cards and a reduction in credit card late payment fees from $30 to $5. NAB will is also set to introduce a free opt-in SMS payment reminder service to alert customers when credit card payments are due.
NAB Personal Banking Group executive, Lisa Gray, said: "Continuing to act to get rid of the bank fees customers tell us they think are unfair will certainly help this." Gray added that the move would help NAB to become more competitive. The annual revenue impact of today's announcement is around $110 million.