When it comes to current accounts, it’s important that they perform certain functions. Customers rely on these accounts to do their daily transactions and the basics on the account should at least offer streamlined incoming and outgoing transfers. Many banks offer a variety of accounts to suit the various needs of customers.
With the added benefits, bells, and whistles come a higher price tag. This review takes a look at the products offered down under to determine whether National Australia Bank Current Accounts are on par with the rest of the world.Find out how this bank compares to a bank that takes great pride in its current account offerings, Standard Bank.
About National Australia Bank
The bank was established only a few decades ago and managed to climb its way up the banking ladder in Australia. Of late, the bank has struggled with some negative press and rising economic turmoil in the country places further pressure on this situation. There are also talks of possible downgrades from the ratings agencies. It’s only natural that the bank would try to leverage their situation by building up a strong client base while riding out the storm. Their product offerings tend to mirror their happy client base, however, tension within the bank places pressure on the staff.
It’s only natural that the bank would try to leverage their situation by building up a strong client base while riding out the storm. Their product offerings tend to mirror their happy client base, however, tension within the bank places pressure on the staff. A full review of National Australia Bank takes a closer look at the full product range.
Key Differences Between Current Accounts and Savings Accounts
Many customers start with one or the other and others have both. There is no right or wrong option here, however, these accounts have a few key difference to take into consideration.
Credit Facilities and Limits
Savings are purely on a cash basis, which means that the accounts cannot go into a negative balance. This means that very few banks across the world offer overdraft facilities on a savings account. Current accounts, on the other hand, often provide users with access to these facilities which allow customers to go into authorized negative balances.
There are only a small number of banks around the world who pay interest on positive balances for current accounts. This is usually the drawing card on savings accounts as the term often dictates the interest that is earned on the accounts. When interest is offered on a checking account, it usually can’t compete with the savings accounts.
Customers who require an account that can perform various transactions will often resort to a current account. This is because many banks offer savings accounts that are limited to a specific number of transactions. Very few offer a transaction version in a savings format.
Current accounts can be used instantly, any time of the day. Savings accounts often have some sort of waiting period, term, or notice period before customers can access the cash. Customers who don’t wish to wait out this period may have to pay penalty fees.
When banks offer debit cards linked to their savings cards, they are often not embossed and function mainly as ATM cards or for purchases. These cards are usually limited when it comes to online purchasing.
The Importance of the Correct Management of a Current Account
What many customers don’t realize about current accounts, is that they’re used by banks to track the general behavior of their customers. Things they look out for on the current accounts is the turnover, spend, fluctuations, and whether customers manage their account well. This information is often used in the decision-making stages, for instance, when deposits and rates are negotiated.
It Can Reduce Creditworthiness Within the Bank
Customers who find themselves continuously in the red and have their checks or debits returned may face a low rating within the bank. Although the credit rating might be good according to the bureaus, the rating within the bank will determine whether the bank will extend their services to credit products.
It Allows Customers to Maximize on their Fee Savings
Those who manage their accounts within the perimeters will enjoy the full benefits of the pricing structure. For instance, those who have a bundled account enjoy the knowledge that they have a predictable fee at the end of the statement cycle.
Simple and Easy to Use
When the account is used according to the prescribed way, it remains simple to manage and customers won’t have to spend hours poring over their bank statements to try and make sense of it. Furthermore, it allows customers to stay on track of their spending and remain within the limits.
It Provides a Foundation for All Banking Transactions
Customers who have a current account with a bank, have the first link in a long and enduring relationship with the bank. The account will provide them with access to numerous other products, which could result in benefiting from bundled accounts and other special offers. When this account is managed well, customers are often rewarded for this as their accounts gain status within the bank. New products and special offers often make their way to well-managed accounts first.
National Australia Bank Current Accounts Product Offerings
NAB Classic Banking
This doesn’t happen often in the world of banking, and when it does, customers should leap at the opportunity. That is because this account doesn’t charge any monthly fees. Furthermore, as far as current accounts are concerned, there are only a few banks across the world that offer this.
- Customers don’t pay monthly account fees, overdrawn fees, or direct charges at NAB ATMs or RediATMs.
- The account provides customers with quick access to interest rates, fees, and charges.
- This account is linked to an NAB Visa Debit card that gives customers access to thousands of merchants across the world and online.
- Furthermore, customers enjoy unlimited access to their funds through a vast network of ATMs and other special services.
- The internet banking and mobile apps provide 24/7 access to products and services.
- Also, customers pay for smaller purchases under $100 using Visa payWave or Tap and Pay.
- Customers enjoy the benefit of extra security features and protection against loss from fraud on their cards.
- Finally, the account has no minimum or ongoing deposit requirements.
NAB Retirement Account
Customers deserve a littler more from their accounts at retirement. This account allows them to access what they need when they need it without hassles or excessive fees. Furthermore, the account provides competitive interest rates.
- Customers pay no monthly account fees, overdrawn fees, or direct charges at NAB ATMs or RediATMs.
- This account is for those over the age of 55. Also, those who receive a Government pension or allowance qualifies.
- Furthermore, the account is linked to an NAB Visa Debit card with Visa payWave.
- The card can be used for ATM withdrawals and purchases in Australia.
- This account is also known for its extra security features on both the account and the debit card.
- Customers enjoy unlimited access to their funds through various banking channels.
- Finally, customers earn interest on their positive balances.
Related Products – NAB Personal Overdraft
Customers who wish to have access to means to manage their cash flow more effectively will find this product ideal. Furthermore, it requires customers to have a current account.
- There is no application fee for facilities under $40,000.
- The product does, however, carry a line fee of $35. These line fees are charged every 6 months and depend on the approval limit.
- Furthermore, the interest rate charged on the facility is variable.
- Finally, the interest is only charged on the amount customers use.
We also did a review on the current accounts offered by a Northern Hemisphere bank, Bank of Ireland.
What We Like About National Australia Bank Current Accounts
There is no need for fancy bells and whistles on a variety of different accounts, as the bank has perfected the main account offering. Instead of offering accounts with different pricing schedules to accommodate the various groups of clients, the bank offers a basic fee structure that doesn’t charge clients a monthly subscription fee. Ever.
Furthermore, there is also a little extra care and attention in accounts for seniors. In those golden years, seniors have access to their funds when and where they need, plus there is the added benefit of extra interest.
Finally, the accounts offer stellar safety features on both the cards and the accounts. This without customers carrying the burden of a monthly fee.
What We Don’t Like About National Australia Bank Current Accounts
We were hoping there would be a bit more variety, especially for college students and those who require a bit more prestige. However, we can’t feel too bad about the offerings as the accounts are incredible.
Critical Reviews Rating National Australia Bank Current Accounts – 9 of 10
It pains us not to give a perfect score on these accounts, however, customers do want a bit of variety in their banking to spice things up. When that option is no longer there, it’s only natural to feel a little discontent especially when prestige matters. This could result in customers looking around for a better deal. This is the only reason why we felt it necessary to mark this category down.
Learn more about the online favorite in the States with this review.