National Australia Bank has confirmed that it will abolish fees on overdrawn accounts from October 1.

The move will apply to all NAB personal transaction and savings accounts, the bank said today.

''These fees currently impact on around 700,000 NAB personal transaction or savings account customers a year,'' NAB said.

''The(y) also generate the most customer complaints to the bank of any bank fee and result in more customer complaints to the bank than any other matter.''

Overdrawn account fees are charged when a customer's personal transaction or savings account is overdrawn. For some banks these fees can be as high as $40 to $50 on each occasion.

NAB said it already had cut overdrawn accounts fees in 2008 from $50 to $30.