Offset Fee

[Wirra436]

Just wondering if anyone on this forum are aware of CBA's new offset fee?

I was recently charged a $95 fee for setting up an offset account linked to my Investment property Loan.

I thought this would be covered under the wealth package however I called the CBA and they told me its a new fee they have now been charging clients when setting up offset accounts, regardless of the wealth package.

??

 

[Paul@PFI]

BTW - Its non-deductible. The cost doesnt reltate to earning assesable income.

 

[Peter_Tersteeg]

The last time I checked, they are charging the $95 fee to existing customers, but not for new packages. My info could be out of date however.

 

[Jamie M]

Yeah it's for existing customers - shouldn't be charged to new. Brady will chime in with a more in-depth response.

Cheers

Jamie

 

[Neptune]

I got a second offset account with CBA setup only a couple of weeks ago linked to one of my loans and they said I was entitled to up to 5 offset accounts as part of the Wealth Package. I haven't seen the $95 fee deducted nor was it mentioned and I am an existing customer.

 

[Brady]

$95 charge is for existing customers.

For months I hadn't seen this actually charged to any of my existing clients.

Am now seeing it get charged, you could possibly speak to your local branch or who ever set it up to see if they could refund the charge, but I wouldn't bank on it.

There is no set number of offsets, you can have unlimited number of offsets.

It's $95 to establish an 'offset arrangement' which you have the ability to switch different loans & offsets in and out.

Whilst I don't personally agree with the fee, it's only $95... over 30years loan thats $3.16p.a

If you have >$2,000 in the combination of offset accounts over a year with home loan rates @ 5% it pays for itself in the 1st year.

 

[D_One]

From what I've been told by CBA loan people, New borrowings of more than $150k qualifies for the free offset for existing customers, otherwise, a $95 fee.

Another option is for you to stay on the MISA which is included in the wealth package. Personally, I stayed on the MISA with a secondary streamline account. Trying to make a stance, perhaps if more people do, they will make the offset free like every other bank.

 

[Brady]

From what I've been told by CBA loan people, New borrowings of more than $150k qualifies for the free offset for existing customers, otherwise, a $95 fee.

Another option is for you to stay on the MISA which is included in the wealth package. Personally, I stayed on the MISA with a secondary streamline account. Trying to make a stance, perhaps if more people do, they will make the offset free like every other bank.

You're right on the new borrowings waiver.

Don't think you stand will do too much, you saving interest by having an offset costs the bank. As I said I don't agree with the $95 fee, but it's well worth it overtime. Especially having multiple offset which not many other banks offer, especially the majors.

 

[s0805]

Not to hijack this thread but any understanding about the ANZ breakfree package in similar situation...do they also offer more than 1 offset account for free

 

[Peter_Tersteeg]

Not to hijack this thread but any understanding about the ANZ breakfree package in similar situation...do they also offer more than 1 offset account for free

You get one offset as part of the Breakfree package. They can set up a second account for $10 per month.