Businesses will be able to maximise their cash flow thanks to a new Commonwealth Bank innovative short notice deposit account that allows customers to earn higher interest at the same time as being able withdraw funds with just 48 hours1 or seven days’ notice.
The new Capital Growth Account will offer an interest rate of 0.75%/1.5% higher than an equivalent at-call savings account and customers will incur no loss of interest or fees if they withdraw funds from their accounts having given the appropriate notice over their chosen short-term notice periods. Comparable accounts in market have a notice period of at least 31 days.
Many businesses hold cash for lump sum payments for specific periods of time, especially to cover tax payments at the end of financial year. CBA data also shows that a significant number of small and medium sized enterprises (SMEs) have largely maintained cash reserves after the Covid-19 pandemic with customers currently holding 39% more in average deposit balances than in January 2020.
Flexible notice accounts such as the new Capital Growth Account give business owners the ability to earn extra interest like a term deposit account on these funds without the same restrictions on withdrawals.
“We know cash flow is key for our customers, especially in the current economic environment,” said Mike Vacy-Lyle, Group Executive of CBA’s Business Bank.
“This means customers don’t need to trade-off higher interest accounts with the requirement to provide a longer notice period or lock away funds in fixed term and wait for them to mature ahead of accessing them.
“As Australia’s leading business bank, our aim is always to make it simple and easy for our customers to open and manage their accounts online with us and provide a world-class digital experience.
“The Capital Growth Account does just that and existing CommBank customers can apply online and manage their notice deposit through the CommBank App, NetBank or CommBiz.
“We also recognise that businesses are still operating in an uncertain environment and some are doing it tough. Customers facing financial hardship or those in vulnerable circumstances will be able to withdraw funds immediately without serving the notice period.”
Things you should know
The information contained in this media release is published solely for informational purposes and provides general market-related information, and is not intended to be an investment research report. It does not take into account your objectives, financial situation or needs. You should consider seeking independent financial advice before making any decision based on information contained in this media release. The information in this media release and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its publication but no representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made in this media release. Eligibility criteria, terms and conditions and fees apply. Please see Capital Growth Account,Capital Growth Account T&Cs, Capital Growth Account Target Market Determination and the Financial Services Guide.
1For notices submitted before 10pm Sydney time, after which time the notice may be processed the following day.
About Business Bank
Commonwealth Bank is Australia’s leading business bank, supporting Australians to start, run and grow their business for over a century. With more than one million small, medium and commercial businesses across the country, Commonwealth Bank brings together the leading technology, products and lending solutions to meet the needs of today’s businesses.
For more information on Commonwealth Bank Business Banking, visit: commbank.com.au/business
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