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 to withdraw funds with just 48 hours 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 the 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 the financial year. CBA data also shows that many 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.”