NAB does the right thing
NAB is the second of the major banks to announce changes to their suite of products and services. Following the RBA's announcement to increase the official cash rate by 0.25% earlier this week, NAB has announced today that it would increase by a similar amount, taking NAB's new standard variable rate from 6.24% to 6.49%.
Increases to NAB's home loans and a range of consumer deposit interest rates will be effective on Friday, 4 December 2009. Business customers will see changes on a range of business deposit and variable business lending products effective Monday, 7 December 2009.
On an average $300,000 loan, NAB customers will be paying approximately $51 less in monthly repayments compared to Westpac customers.
The decision to increase rates in line with the RBA is a sign of NAB's ongoing commitment to improve and strengthen customer relationships.
While admitting too that funding costs for the bank had increased, Lisa Gray, Group Executive NAB Personal Banking, said the bank was willing to absorb the costs in the short term.
"We are determined to be competitive, to offer our customers a better deal and attract new
customers to NAB. Today we are sending a message to customers at Westpac, and the other
banks, that NAB can offer them a better deal,” Ms Gray said.