CBA's Transactional Offset
- Thread starter Shahin_Afarin
- Start date
Sorry about the delay all 
There was alot of debate around this yesterday at the development day and at the function I was at last night...
THE GOOD
- Official launch date will be 27/9
- New CBA customers on wealth package (borrowing >$150k) will not have a fee to establish or ongoing.
- You will be able have have multiple transactional offset accounts linked to the one loan, I believe this is excellent and possibly a market leader.
THE NOT SO GOOD
- Existing CBA customers not on wealth package will have to pay a $10p/m fee
along with a $95 once off set up fee per arrangement (per loan)
- Existing CBA customers on wealth package wont have to pay to pay the $10p/m fee but will have to pay the once off set up fee per arrangement (per loan)
There was alot of debate around this yesterday at the development day and at the function I was at last night...
THE GOOD
- Official launch date will be 27/9
- New CBA customers on wealth package (borrowing >$150k) will not have a fee to establish or ongoing.
- You will be able have have multiple transactional offset accounts linked to the one loan, I believe this is excellent and possibly a market leader.
THE NOT SO GOOD
- Existing CBA customers not on wealth package will have to pay a $10p/m fee
along with a $95 once off set up fee per arrangement (per loan)
- Existing CBA customers on wealth package wont have to pay to pay the $10p/m fee but will have to pay the once off set up fee per arrangement (per loan)
This part I like a lot. Hopefully other banks will take lead from this and introduce it as well as it's something I've been wanting for a loooong time.
Absolutely agree.
This is something very smart that the bank has done.
It's taken them along time to bring this product out, I'm glad that they have thought a little outside the square.
Very unfortunate for the fees, but existing customers are used the the MISA it works for them and $95 fee over the life of the loan is extremely minimal (that minimal that I personally dont know why the bank bothered). And for those that wanted the transaction and didn't bank CBA due to no transcational offset will now be able to without any fees (WP/MAV>$150k).
I believe that CBA will get alot of market share, currently having good policy, great pricing and now the loan features to match... along with the upfront valuations for $49 (which is refunded if loan taken out within 45days)
Quite a few smaller lenders have such
I recall STG and Sun, and some of the BSoc and
Good feature to have for a mainstream 4
makes sense to do something "different" from a marketing perspective
ta
rolf
I think you would find that most existing CBA customers have managed fine with the MISA, I myself have a MISA and really doesn't bother me that much that its not transactional. I couldn't think of anything worse then having a large amount of $$$ available in my everyday account.
For those that really wanted a transactional offset they didnt come to CBA, those that did have made do with the MISA. If there are existing customers that really want the transactional feature $95 for the life of the loan isn't a huge sum ($3.16 per year on a 30year loan).
I believe that CBA could of had done better with its existing customers by offering it the same as existing. I'm sure a lot of thought has gone into it.
In the end overtime everyone will have the new transactional offset and the MISA will be forgotten.
Also from what I've been told loans funded from 1/8 will be eligible for the transactional offset without any charge
Thanks for the update Brady.
Is the MAV the same as the wealth package? Is the MAV yearly fee going to increase?
Should be new customers paying the $95 not penalising existing customers.
Or split it in half and charge everyone $42.50! Or take one on the chin for the cost of doing business and offer free set up if done by 31st Dec.
How does one apply? Can I walk into branch on this date and set up on the spot?
Does it just change current transaction account to fully transactional and account numbers stay the same OR will it be a new account and then you need to give new account numbers to employer, PM's etc? OR does the MISA account become the fully transactional account? How does this work please.
Is the MAV the same as the wealth package? Is the MAV yearly fee going to increase?
Should be new customers paying the $95 not penalising existing customers.
Or split it in half and charge everyone $42.50! Or take one on the chin for the cost of doing business and offer free set up if done by 31st Dec.
How does one apply? Can I walk into branch on this date and set up on the spot?
Does it just change current transaction account to fully transactional and account numbers stay the same OR will it be a new account and then you need to give new account numbers to employer, PM's etc? OR does the MISA account become the fully transactional account? How does this work please.
Because customers don't always think logically.
They'll turn their nose up at paying that fee thinking it's outrageous and keep their savings in whatever form they have. They then don't offset their mortgage, therefore it's less interest offset and more interest paid to the bank.
They don't realise that ~2% interest different would probably equate to a lot more than $95.
That's how I see it anyway.
What was the point of this post?
Because CBA has been saying this for a long time without the results. I will believe it when I see it as a customer.
No, it won't close the loan but you won't benefit because the bank won't pay interest on any funds in the offset which exceed the loan amount. I've had excess funds in the MISA and my loan was never closed. If you have 50k/50k then you don't pay any interest.
Brady, do you know if they will keep the MISA or is this intended to replace it?
Earlier this year I had full loan balance + 0.20 cents in my MISA account for around 3 months and it didn't get closed. Loan balance was > $200K
Cheers,
Oracle.
I don't believe there has been an exact date given before. Previously had stated month (which is likely why they are waiving fee for those after 1/8)
But haven't been given specific of fee's and features.
Time will tell, but if you prefer next time I'm happy to keep the info to myself and you can wait til its released?
MISA will be kept.
There is no plan to remove the MISA, overtime it will become a thing of the past through new customers having a transactional offset.
