Product details
The Pensioner Security Account is designed to give you financial peace of mind as you enter your retirement years. Your money earns a modest interest rate that increases as your balance grows, while you are still able to access your funds for free. This is a versatile account worth looking into if you want better manageability over your pension funds.
- Product Name
- Commonwealth Bank Pensioner Security Account
- Maximum Variable Rate
- 2.25% p.a.
- Standard Variable Rate
- 2.25% p.a.
- Monthly Fee
- $0
- Minimum Opening Deposit
- $2,000
- Internet Banking
- Yes
- Internet Transaction Fee
- $0.30
- Phone Banking
- Yes
- Phone Transaction Fee
- $0.30
- Joint application?
- Yes
- Minimum Age Requirement
- 55
- Maximum Age Requirement
- No Maximum Age
- Covered by Government Guarantee?
- Yes (Up to $250,000 per person, per institution)
What are the features of the Commonwealth Bank Pensioner Security Account?
When looking at a transaction account to manage your pension money it is important that you find what that suits the way you are most comfortable banking. This can be found by comparing the features of different accounts to see where you will get the most value for your money:
- Monthly account keeping fee. With the Pensioner Security Account there are no monthly or annual
- Transaction fees. You are allowed up to 15 free electronic withdrawals a month before your account is charged per transaction. That limit includes ATM and EFTPOS withdrawals.
- Account accessibility. You are able to access your account at any one of the over 4,000 CommBank and Bankwest ATMs around Australia. You can also register for CommBanks award winning NetBank to set up direct deposits and debits or you can bank over the phone.
- Debit card. You can choose to link your account to a CommBank Keycard or debit Mastercard. With either one you can make deposits and withdrawals using an ATM or at a CommBank branch.
- Debit Mastercard. By linking your account to a debit Mastercard you can pay with your own money online, over the phone and at point of sale terminals where Mastercard is accepted.
- Overseas transactions. Through the Mastercard, Maestro and Cirrus ATM networks you can use your debit Mastercard at ATMs worldwide. There is a withdrawal fee of $5 plus 3% of the transaction amount. If you make purchases overseas you will be charged 3% of the purchase value.
- Interest rates. The interest rates for this account are tiered, where you earn a nominal rate on the portion of your balance that is less than $2,000. For the portion that is between $2,000 and $49,199.99 that rate is tripled, and then that new rate is doubled for any part of your balance that exceeds $49,199.99.
- Interest payments. Interest is calculated on your daily closing balance and paid into the account quarterly on the first calendar day of March, June, September and December.
- Availability. This account is intended for retired individuals of at least 55 years of age or those receiving one of the following pensions; aged pension, disability support pension, carer’s pension, wife’s pension, widow’s pension, veteran’s pension or the mature age allowance. The Pensioner Security Account is for personal use only and cannot be opened for use as a company or trading account. Trust accounts are permitted, but can only be opened at a Commonwealth Bank branch.
Pros
- No monthly account fee
- Up to 15 free electronic withdrawals per month
- Competitive interest rate
Cons
- Minimum opening amount required
How do I apply for the Commonwealth Bank Pensioner Security Account?
Commonwealth Bank makes it easy to open a Pensioner Security Account by providing the application online. Before applying online, check to make sure that you meet the following eligibility requirements:
- Minimum age. This account is for Australians age 55 or older who are no longer employed. Exceptions are made for individuals receiving the pensions listed above.
- Residency requirements. All applicants must be Australian residents with an Australian address.
- Depository requirements. A minimum opening deposit of $2,000 is required before the account can be opened.
Commonwealth Bank also recommends that you have the following documentation ready when beginning to fill out your application:
- Tax file number. You are permitted to withhold your tax file number (TFN) or exemption code but if you don’t provide it the bank will be required by law to deduct tax from your interest earnings above a certain threshold.
- Identification. Allowable forms of photo identification include your driver’s licence, passport or Medicare card.
- Pension information. If you are receiving a qualifying pension you will need to provide your pension type and number.
- Bank account information. Existing Commonwealth Bank customers will need to provide any deposit account and debit or credit card numbers.
Barring that all of the necessary information has been provided, you will receive the forms needed to be signed in order to open the account within seven business days.
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0.01
Why is my interest rate 2% on my savings account yet the gov says it is 3.25% percent why the big deference on my pensioners savings account I am loosing 1.25% percent why?
Hi Peter,
Thanks for your question.
If you are referring to the deeming rate, yes, the government has set it at 3.25% under a set threshold as defined by the Department of Social Services. However, financial institutions (including Commonwealth Bank) still decide the interest rates they offer on their various accounts.
You may want to check this page to learn more about deeming rate and to compare deeming savings accounts.
Cheers,
Anndy
My mother received a letter which she is a little confused about.
It is something to do with changes in interest rates/pensioner security account May 1st. Sorry for broad nature of question but as I don’t live near her haven’t as yet read letter to see if she needs to do anything with her account before that date I have her power of attorney to organise things on her behalf
Hi Karen,
Thank you for your inquiry.
Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.
With regards to this legal matter, it would be nice and safe if you can coordinate directly with the bank. As they may have the clarification for the concerns that you currently have.
Cheers,
Harold
I have money in a saving account from 2005. I filled forms to recover it. I’ve spoken to 2 government departments today and they don’t have it. Could you advise me as to where you sent it? I was told it would take 2 weeks to get it back, but no one has it. Thanking you.
Hi Suzanne,
Thanks for getting in touch. You have come through to finder.com.au, we are an Australian financial comparison website and general information service. We do not represent any company we feature on our pages.
I’m afraid we may not have the answer to that question. You might like to get in touch with the Commonwealth Bank directly. However, you might find information on how to locate unclaimed money on this page helpful.
I hope this has helped.
Kind regards,
Liezl
what is the interest rate for a balance below $2000 ?
Hi Daryl,
Thank you for your inquiry.
For balances less than $2,000, the interest is earned at 0.25% p.a.
Cheers,
May
How do I arrange to have my Pensioner Security Account balance appear in my existing CBA netbank accounts page?
Hi Ann,
Thank you for your question.
You may need to open the Commonwealth Bank Pensioner Security Account first so that your pension balance will go straight to your account and then you can view them on your NetBank account. Make sure to read the requirements before you apply (as stated on the “How to Apply” section above and if you need assistance with your application, please contact CBA directly.
Cheers,
May
On balances over 50K you get free transactions?
Does this include over the counter assistance?
Sometime us oldies need assistance when ATMs are offline or down and or have lone ques.
Age Pensioner account holder
Hi Lindsay,
Thanks for your question.
No, transaction fees still apply even if your balance is over 50K. Though the bank allows up to 15 free “electronic withdrawals” a month before your account is charged per transaction.
As for accessing your funds through over-the-counter, if you chose the “assisted option” at the time of account opening, all assisted withdrawals in a branch or via telephone banking (including cheques issued on your account and cashed over-the-counter at a Commonwealth Bank branch) will have a charge of $2.50.
Cheers,
May
What is the interest on the all $10000 is it same as $48000
Hi Dragutin,
Thanks for your question.
For Commonwealth Bank Pensioner Security Account, the interest rates are tiered. For balances that is between $2,000 and $49,200, the interest rate is 1.25% p.a. This means that the same interest rate will be used if you have a balance of $10,000 or $48,000 in your account.
Please note that the interest is calculated on your daily closing balance and paid into the account quarterly on the first calendar day of March, June, September and December.
Cheers,
Anndy
Why doesn’t commonwealth bank accept a UK old age pensions for the commonwealth bank pensioner security account.
Hi Betty,
Thanks for your question.
The Commonwealth Bank Pensioner Security account is designed for the Australian Age Pension. International age pensions are considered international money transfers.
For more information please speak to the Commonwealth Bank directly.
I hope this helps,
Harry