NAB 'lays down the gauntlet' over savings accounts

National Australia Bank (NAB) has announced that it is to scrap monthly service fees on some of its savings accounts, which has been welcomed by one official, AAP reports indicate.

The institution said the $4 and $5 charges would be brought to an end in January next year on its Classic and e-Banking personal transaction products.

Fees on ten other savings accounts will also be eradicated.

Treasurer Wayne Swan supported the move and went on to call on other banks to follow NAB’s example, which may bode well for those looking for high interest savings.

"I think it lays down the gauntlet to all of the other banks to reduce their fees and charges," Mr Swan said.

He added: "So they’ve set a good example here. Let’s see some of the others follow."

The Big Four banks were criticised this week for increasing their interest rates on home loans.

Mozo research showed they made some $17 million in profit as a result of the hikes.

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