Take charge of your retirement savings and enjoy hassle-free superannuation management with an Essential Super account from Commonwealth Bank.
One of Australia’s Big Four banks, Commonwealth Bank is a leading provider of a broad range of financial services. Its suite of products includes everything from savings and transaction accounts to business banking, funds management, insurance and superannuation.
Based in Australia, but with a strong international presence, Commonwealth Bank offers an extensive selection of superannuation and retirement income options. The bank is one of Australia’s largest managers in retail superannuation, allocated pensions and annuities in terms of funds under management.
If you’re looking for a secure and simple way to save for your retirement, the bank’s Essential Super product combines competitive fees with easy access to your superannuation savings.
A closer look at Commonwealth Bank
The Commonwealth Bank Group is one of the best-known names in the Australian financial services industry. Along with Westpac, NAB and ANZ, it is known as one of Australia’s Big Four banks. Its net profit after tax for the half year ending 31 December 2016 was $4,895 million. It has more than 1,100 branches nationwide and over 4.6 million active online customers.
What’s Internet banking like for Commonwealth Bank?
Commonwealth Bank’s Internet banking platform, NetBank, allows you to perform a full range of tasks to ensure easy day-to-day management of your finances. The award-winning platform provides 24/7 access to your Essential Super account so that you can check your balance and adjust your investments.
What super funds does Commonwealth Bank offer?
Commonwealth Bank offers one super fund to Australians saving for their retirement.
Essential Super, Commonwealth Bank’s MySuper product, offers a safe, secure and easy-to-understand retirement investment solution that comes with four investment options. One option is for people who don’t want to make investment decisions and the other three investment options are for those who want to take charge of their retirement savings.
You can manage your Essential Super account in the same way you would any ordinary bank account, with easy account access at all times through Commonwealth Bank’s NetBank portal. Other features include competitive fees, total and permanent disablement (TPD) cover as standard and the ability to easily take your super with you from one job to the next.
What investment options are available with Commonwealth Bank super funds?
There are four investment options offered through a Commonwealth Bank Essential Super account:
- Lifestage option. The Lifestage option is automatically chosen if you do not wish to make any decisions about how your super is managed. It ensures that your superannuation balance is automatically invested in a way that suits your life stage.
- Balanced option. The Essential Super Balanced option aims to achieve a return of CPI + 1.5% per annum over rolling five-year periods. Half of your portfolio is invested in a diversified range of assets designed to generate long-term capital growth, while the other 50% is targeted at defensive assets that offer stable returns. The minimum suggested timeframe for investors choosing this option is at least four years.
- Australian Share option. The Australian Share option aims to track the performance of the S&P/ASX 200 Accumulation Index and generate returns comparable to the Australian sharemarket over rolling one-year periods. The minimum suggested timeframe for investors choosing this option is at least seven years.
- Cash Deposit option. With the aim of achieving a positive monthly return, this strategy invests your balance in a Commonwealth Bank of Australia bank deposit product. This is a defensive, low-risk strategy with no minimum suggested timeframe.
What fees apply to Commonwealth Bank super funds?
The table below outlines the fee that applies to the Commonwealth Bank Essential Super:
|Type of fee||Amount||When paid|
|Investment fee||Lifestage option: 0.40% p.a.Balanced option: 0.40% p.a.Australian Share option: 0.40% p.a.Cash Deposit option: 0.00% p.a.||Usually deducted on a monthly basis|
|Administration fee||Lifestage option: 0.40% p.a.Balanced option: 0.40% p.a.Australian Share option: 0.40% p.a.Cash Deposit option: 0.00% p.a.PLUS $60 p.a. ($5 per month) for all options||Deducted on a monthly basis|
|Buy/sell spread (per transaction)||Lifestage option: 0.15%Balanced option: 0.15%Australian Share option: 0.10%Cash Deposit option: nil||Payable whenever you add to, withdraw from or switch to or from an investment option|
What pension accounts does Commonwealth Bank offer?
Commonwealth Bank also offers allocated pensions to provide an ongoing income in retirement. Also known as account-based pensions, these allow retirees to roll their superannuation savings into a pension and take advantage of substantial tax benefits.
They offer the convenience of a regular income, and you get to choose the amount of income you receive each year. These income payments are funded from your super lump sum and the investment income it provides, while your pension account is managed by a fund manager. You can choose from a wide range of investments and make lump sum withdrawals at any time.
To find out more about Commonwealth Bank allocated pensions and to apply for one, you can request an appointment at your nearest branch.
How to apply for a Commonwealth Bank super fund
You must meet the following criteria in order to qualify for a Commonwealth Bank Essential Super account:
- Be at least 16 years old
- Currently live in Australia
- Be an Australian citizen, permanent resident or a relevant visa holder
If you meet these criteria, you can apply for an account by filling out and submitting an application form in one of the following ways:
- Online through the NetBank platform
- In person by visiting your nearest Commonwealth Bank branch
If you’re a new customer, you’ll also need to provide ID, such as a driver’s licence or a passport. You may also want to provide your Tax File Number (TFN).
Frequently asked questions about Commonwealth Bank Super
Does Commonwealth Bank offer any other investment options for retirement?
Yes, Commonwealth Bank offers Investment Growth Bonds, which are insurance bonds providing a range of investment options and guaranteed annuities, which provide a secure income throughout your retirement.
Who is the trustee of Commonwealth Essential Super?
Colonial First State Investments Limited is the trustee of Commonwealth Essential Super.
Is there a cooling-off period?
Yes, a 14-day cooling-off period applies. This means that if you change your mind after opening an account, any contributions you’ve made can be transferred to another super fund of your choice.
What insurance cover is included with Essential Super?
Essential Super account holders who are under the age of 60 receive automatic death as well as total and permanent disablement (TPD) cover. Cover is only provided if you fund your account within the first 120 days of opening, while you can increase, decrease or cancel cover at any time.
How can I view my Essential Super statements?
Commonwealth Bank sends Essential Super statements directly to your NetBank message box.
Is there an exit fee?
No, there is no exit fee attached to your Essential Super account.