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Relationship Balance Exemption

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Definition

Relationship Balance is the sum of a customer's balance in contributing accounts held with the Commonwealth Bank (for selected personal accounts only.)

Customers who maintain a combined Relationship Balance of $50,000 or more in 'Contributing' Bank products will receive an exemption on 'Eligible' Accounts, exempting them from:

  • Monthly Account Fees; and/or
  • Additional Withdrawal Fees.

 

Note: Exemptions DO NOT apply to:

  • Non CBA ATM fees
  • Exception Fees - eg Overdrawing approval fee
  • Maestro and Cirrus access charges
  • Fees for common banking Services

 

Accounts Eligible for Relationship Balance exemption

An 'Eligible' account is one than can have the Monthly Account Fee and/or Withdrawal Fees waived due to Relationship Balance.

 

Eligible Accounts

Exempt from MAF and Withdrawal fees

  • Smart Access
  • Complete Access
  • Streamline Account

 

Which accounts contribute to Relationship Balance?

A 'contributing' account is one where the balance if the account contributes to the customer's relationship balance.

  • selected personal accounts only;
  • business accounts do not contribute

 

When is the Relationship Balance calculated?

The Relationship Balance is calculated on the second last business day of the month. (eg. Thursday 27 September 2009)

If the Relationship Balance is $50,000 or more, the fee exemption will apply for the following month. (eg. Customer will not be liable for applicable fees in October 2009)

Monthly Account Fees are charged on the first business day of the following month. (ie. fees for October would be charges on the first business day in November)

Example:

If the customer has $50,000 in  'contributing' accounts on the 27 September 2009, the fees for the month of October will be waived. To verify that the customer received an exemption, check that fees have not been charged on the first business day of November.

 

How is Relationship Balance calculated for Single and Joint accounts?

Both 'Eligible' and 'Contributing' accounts are treated differently depending on whether the 'eligible' account is in single or joint names.

Note: A customer may have a different Relationship Balance for each of their 'eligible' accounts

Eligible accounts in a single name:

  • If  'Contributing' accounts are in a single name, the entire balance is included in the Relationship Balance of 'Eligible' accounts in the same single name.
  • The balances in 'Contributing' accounts in joint names are split evenly between the account holders with their share contributing to the relationship balance of 'Eligible' accounts in a single name.

 

Refer to: Example of a Single account names.

 

Eligible accounts in joint names:

  • Joint accounts must be maintained in the exact same names in order to be 'Contributing'
  • The entire balance in 'contributing' account in joint names is included in the relationship balance of 'Eligible' account in the exact same joint names.
  • An account in a single name CANNOT 'contribute' to the Relationship Balance of an 'eligible' account in joint names.

Notes:

  • If the Bank were to allow holdings in individual's account to contribute to relationship balance in joint accounts, the customer's confidentiality may be breached.
  • It is the Bank's duty to protect the confidentiality of customer's information. This includes keeping a customer's individual holdings confidential from anyone the customer has joint holdings with.

Refer to: Examples - Joint account names

 

Examples - Single account names

Example 1

Jack has two accounts held in his name only.

On the second last business day of August 2009, the balances were:

  • Smart Access - $60,000
  • Cash Investment Account - 410,000

The relationship balance that would be applicable to Jack's Smart Access is

+ $60,000 (100% of the balance of Jack's Smart Access)

+ $10,000 (100% of the balance of Jack's Cash Investment Account)

= $70,000

The relationship balance that would be applicable to Jack's Cash Investment Account is

 

+ $60,000 (100% of the balance of Jack's Smart Access)

+ $10,000 (100% of the balance of Jack's Cash Investment Account)

= $70,000

Therefore, both Jack's Smart Access and Cash Investment accounts qualify for a Relationship Balance in September 2009 and will be exempt from fees normally charged on the first business day in October (MAF $ Withdrawal Fees for Streamline and MAF for Cash Investment Account).

 

Example 2

Julie and Ben both have a Streamline Account in single names. Ben also has an AwardSaver account. they have an Investment Home Loan in joint names.

On the second last business day of January, the balances are:

Julie's accounts

  • Streamline: $1,500

 

Ben's accounts

  • Streamline: $600
  • AwardSaver: $8,000

 

Julie and Ben's accounts

  • Investment Home Loan -$200,000

 

The relationship balance that would be applicable to Julie's Streamline is

+$100,000 (50% of the balance of the joint Investment Home Loan0

+$1,500 (100% of the balance of Julie's Streamline)

=$101,500

 

The relationship balance that would be applicable to Ben's Streamline is

+$100,000 (50% of the balance of the joint Investment Home Loan)

+$600 (100% of the balance of Ben's Streamline)

=$8,000 (100% of the balance of Ben's AwardSaver)

 

The relationship balance that would be applicable to Ben's AwardSaver is

+$100,000 (50% of the balance of the joint Investment Home Loan)

+$600 (100% of the balance of Ben's Streamline)

+$8,000 (100% of the balance of Ben's AwardSaver)

=$108,600

 

Therefore, Julie's Streamline, Ben's Streamline & Ben's AwardSaver qualify for a Relationship Balance in February and will be exempt from fees normally charged on the first business day in March (MAF & Withdrawal Fees for Streamline and MAF for Cash Investment Account & AwardSaver).

 

Examples - Joint account names

Example 1

Steve and John have three accounts held jointly in their names (each account is in exactly the same names). John also has a Passbook Savings Account in his own name only.

On the second last business day of April, the balances are:

Steve and John's joint accounts

  • Term Deposit: $51,000
  • Complete access: $5
  • Personal Loan: $110

 

John's account

  • Passbook Savings Account: $890

The relationship balance that would be applicable to Steve and John's Complete Access is

+$51,000 (100% of the balance of the joint Term Deposit)

+$5 (100% of the balance of the joint Complete Access)

+$110 (100% of the balance of the joint Personal Loan)

= $51,115

 

John's Passbook Savings Account does not contribute as single accounts cannot contribute to the Relationship Balance of a joint account.

 

The relationship balance that would be applicable to John's Passbook Savings Account is

+ $25,500 (50% of the balance of the joint Term Deposit)

+ $2.50 (50% of the balance of the joint Complete Access)

+ $55 (50% of the balance of the joint Personal Loan)

+ $890 (100% of the balance of John's Passbook Savings Account)

= $26,447.50

 

Therefore, Steve and John's joint Complete Access qualifies for a Relationship Balance exemption in May and will be exempt from fees normally charged on the first business day in June (MAF & Withdrawal Fees for Complete Access).

John's Passbook Savings Account does not qualify for a Relationship Balance exemption as its Relationship Balance this month is below the required $50,000 threshold.

 

Example 2

Tim and Marisa have a Streamline account held jointly in their names. Marisa also has a Term Deposit in her own name only.

On the second last business of July the balances are:

 

Tim and Marisa's joint accounts

  • Streamline: $2,600

Marisa's account

  • Term Deposit
  • Cash Investment Account: $2,000

 

The relationship balance that would be applicable to Tim and Marisa's Streamline is

+$2,600 (100% of the balance of the joint Streamline)

= $2,600

 

Marisa's Term Deposit and Cash Investment Account do not contribute as single accounts cannot contribute to Relationship Balance of a joint account.

 

The relationship balance that would be applicable to Marisa's Cash Investment Account is

+ $1,300 (50% of the balance of the joint Streamline)

+ $150,000 (100% of the balance of Marisa's Term Deposit)

+ $2,000 (100% of the balance of Marisa's Cash Investment Account)

= $153,000

 

Therefore, Tim and Marisa's Streamline account does not qualify for a Relationship Balance exemption as its Relationship Balance this month is below the required $50,000 threshold.

Marisa's Cash Investment Account qualifies for a Relationship Balance exemption in August and will be exempt from fees normally charged on the first business day in September (MAF for Cash Investment Account).