NAB opens 27,000 accounts in one month

Competition for everyday transaction accounts customers is warming up as customers respond to the fee changes announced over recent months by National Australia Bank and copied to some extent by other banks.

NAB said yesterday that it has opened 27,000 new 'Classic Banking' accounts since monthly fees were abolished on 22 January 2010.

A spokesperson for NAB said most of these new accounts were thought to be new-to-NAB customers because monthly fees were abolished on most of NAB's everyday transaction accounts, except the Gold banking account.

Choice has shortlisted the NAB Classic banking account and the ING Orange Everyday account for their consumer 2010 awards.

ANZ's television advertisement featuring Channel Seven's City Homicide star Genevieve Morris as 'Barbara', an arrogant bank teller for "A Bank", is reported to be striking a chord in the marketplace as well.

Advertising industry researcher house Xtreme Information says the ANZ ad was the third most played advertisement on Australian TV last week.

ANZ's managing director of marketing and strategy David Lindberg told the Herald Sun that the ad had generated three times the recognition they expected. Lindberg said a "material" number of people now intend to try ANZ. Morris herself is reported as saying she feels a lot more famous as a result of the advertisement.

ANZ has abolished many fees on itseveryday account, but increased the monthly account-keeping fee to $6.

The ANZ ad is believed to be largely directed at Commonwealth Bank customers.

CBA charges $4 per month for its Streamline e-access account, or $6 with unlimited transactions included.

Westpac's Choice Account charges $5 per month or nil if there is more than $2000 deposited in one month.

Credit Union Australia (CUA) and some other smaller credit unions have no monthly account fees but they do have a complicated system of transaction fees, some of which are waived if the customer has a home loan, term deposit or a personal loan.

Suncorp Bank announced this week it has abolished monthly fees and deposit fees on everyday business banking accounts. Suncorp says its business customers were spending up to $500 per month on banking fees.