The CDIA is a transactional cash account connected to CommSec for managing investments. From late October, the bank introduced tiered interest rates. Most smaller investors, with balances under $5,000, now earn 0.1% interest, up from 0.05%. However, customers with larger balances have seen substantial reductions. Those with $500,000 to $1 million now receive 1.15%, down from 2.6%, and those holding over $1 million earn 1.75%, which is also a considerable drop.
The changes also affect customers who opened their CommSec accounts before October 2012. Their interest earnings may now be up to 0.4 percentage points lower per year, depending on their balance. For instance, a client with $100,000 now earns 0.25%, compared with a previous rate of 0.65%. Reports suggest some investors were unaware of the changes despite the bank stating it contacted 1.3 million eligible clients and ran updates through multiple public channels.
In response to the interest reductions, CommBank is highlighting a new product called the CommSec Notice Investor. This savings option offers returns up to 3.7% when funds are held for a minimum of seven days. The move reflects a broader trend, with many retail investors now favouring fixed-return options to complement their share investments.
CommSec remains the clear market leader, holding a 40% national share. It posted an annual profit of $155.7 million, up 33% from the previous year, fuelled by high trading volumes amid global market volatility. While the rate changes may affect some clients, the bank seems focused on attracting a more active, yield-oriented investor base.
