Commonwealth Bank is set to revolutionise cash flow management for businesses with the innovative Capital Growth Account, a short-notice deposit account. The pioneering account allows customers to accrue higher interest rates while retaining the ability to withdraw funds with a mere 48 hours or seven days’ notice.
Advantages of the Capital Growth Account
The new account offers an impressive 0.75%/1.5% higher interest rate compared to a typical at-call savings account, with no penalties or loss of interest should funds be withdrawn after the requisite notice. In a marked contrast to similar accounts in the market, which require at least a 31-day notice period, the Capital Growth Account ensures businesses retain access to their finances with unparalleled flexibility.
For businesses maintaining cash reserves for lump-sum payments, particularly tax payments at the financial year’s end, this account proves invaluable. Commonwealth Bank data indicates that post-Covid-19, a substantial number of small and medium-sized enterprises (SMEs) have kept steady cash reserves, with average deposit balances now 39% higher than in January 2020.
The Capital Growth Account‘s flexibility gives business owners the opportunity to earn extra interest akin to a term deposit account, without the usual restrictions on withdrawals.
Supporting Quotes
Mike Vacy-Lyle, Group Executive of Commonwealth Bank’s Business Bank, emphasised, “We know cash flow is key for our customers, especially in the current economic environment.” He further highlighted the benefits of the new account, noting, “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.”
Promising a seamless user experience, he added, “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.” CommBank customers can effortlessly apply online and manage their deposit notices through the CommBank App, NetBank, or CommBiz.
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Vacy-Lyle also acknowledged the continued uncertainties businesses face, stating, “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.” This groundbreaking feature of the Capital Growth Account ensures businesses can access their funds immediately during times of hardship, further affirming Commonwealth Bank’s commitment to its customers.
