NAB is keeping the customers on track with what they want most, and that is to save money and not see any unexpected surprises appear on their credit card statements
The changes on the NAB credit card fee structure are scheduled to be effective starting January 14, 2011.
Interest and fee changes at NAB
Starting in January you will have less interest to pay on your NAB credit card. Any payments that you make from that day forward will be put towards any balances you have with the higher rate of interest before your balances that have a lower rate. This is a big change from the way things work now. Currently any payments you make are automatically allocated to the balance with the lowest interest rate.
Another change you are sure to love regards balance transfers. If you have transferred over a balance and have not been able to pay off the amount once the transfer period has ended, the remaining balance will be considered a purchase instead of a cash advance. Since the purchase rate is lower than the cash advance rate you are definitely going to save some money.
- The fee that is regularly charge for late payments will drop from $30 to only $5 dollars. This is a savings of about $100 if you make 4 late payments in a year.
- There will no longer be any over limit fees. Sometimes it's difficult to keep track of your limit and with this new fee restructuring you won't have to worry about going a few dollars over your limit by mistake and then being charged for it.
- For your convenience NAB will be sending out reminders for credit card payments by email and SMS. This will help remind customers to make their payments on time every month.
An example of how much you can save
If you have a balance transfer of $6000 and are paying an interest rate of 4.99% for a six-month period, and are making about $400 worth of purchases every month, then the repayments made are going towards the balance transfer only. The purchase balance is sitting on hold until the balance transfer has been paid off and is accruing an interest of 19.49% p.a.
Under the new system in January any payments made will go towards the balance with the highest interest rate. This means that the purchase balance in this case will be paid off first. Assuming that $550 payments are being made per month, you will end up saving about $73 during the balance transfer time period.
These NAB interest rate and fee changes are going to make a big difference in the way you use your credit card. You will have more flexibility and freedom than ever before.