After many years of promises Commonwealth Bank has finally come through with their transactional offset account.
CBA this week announced their Everyday Offset account, a feature that will allow consumers to use their entire balance to offset their personal SVR home loan or investment loan.
According to Kathy Cummings, executive general manager, third party and mobile banking at Commonwealth Bank, the CBA products differs from their competitors in a number of ways.
“What makes our offset feature different from the other major financial institutions is that our customers can have multiple, individual and joint Everyday Offsets linked to their home loan, which enables the funds in these accounts to offset the interest on these eligible home loans,” she told The Adviser.
According to Justin Doobov, managing director at Intelligent Finance, the offset account has been long awaited.
“They have been promising a transactional [offset] account for years and years,” he told The Adviser.
“They’ve always had an offset account, but now it has the transactional benefit and this means we can add CBA into the mix of panels that offer that offset. We have customers asking for it, so now we can offer that."
The introduction of a technology platform held up the release of the product, said Ms Cummings.
“We waited for the capability provided through the replacement of our technology platform via the Core Banking project, which was delivered in 2012,” she said.
“This new platform allows us to deliver market-leading products such as Everyday Offset with features such as real-time banking and easy access to funds through Kaching and NetBank, as well as the link to multiple accounts that other banks do not have.”