CBA Wealth Package

My wealth package is due for renewal soon at $395 pa.
Benefits - discount on home & contents insurance, discounted interest rates, free credit card, no monthly fees for offset.
Benefits I use - discounted interest rates @ 4.07% (recently went up from 3.82%) IO 1 year left owner occupied, offset account loan fully offset.

Is it worth keep paying the wealth package fee?
Should I stop and pay $120 pa for offset?
Or switch bank - exit fee is $350 + gov charges (QLD) not sure how much though.
Thoughts? @ 4.07% IO owner occ. it really isn't that great of a rate.

 

4.07% IO means you're currently getting 1.40% discount.

If you opt out of wealth package your rate goes up to 5.47% unless you have your loan fully offset, you're going to pay a heap more in interest.

4.07% for IO is a better rate than I have personally. You wouldn't be able to get this rate today if you were looking to borrow through CBA (based on IO)

 

If your loan is fully offset, does it matter what the rate is? Are you planning to redraw the cash at some point?

If you want to stay with CBA, extend that IO term out now while you can (it's just a form) or you'll likely need to go through an application or start paying P&I in 12 months.

 

I'd keep the package. Even if the loan is fully offset, for a discount of 1.40% its worth keeping as you probably wouldn't get this discount again the future. It's probably worth paying the $395 for the future opportunity to have access to cheap money.

 

Yes, 1.40% discount, how much does CBA offer at the moment?
Yes, my loan is fully offset.

Is it true I will be reassessed? Will this affect the rate I'm on?

 

wow, I feel ripped off. On the same package for number of years, looking to lower current rates and CBA will only offer 4.7%

 

The credit card alone made it worth it for us. Not because the credit card is anything special...but because of the travel insurance that comes with it. The travel insurance on the CBA cards covers both you and your partner. You dont have to purchase the tickets with the card either. It's a solid deal.

"Saves" us round $300 a year...more than makes up for the wealth package costs.

 

Probably closer to 1.2% but would depend on lvr and aggregate borrowings?

 

@evalord Right now, you won't be reassessed. If you wait too long, you will be and then you'll get the discounts on offer on the day.

 

Important to remember that bank staff have targets and incentives to earn by meeting the targets.

I tell ALL my clients to NEVER take advice from a bank staff member as they are transactionally focused (all about them) as opposed to strategically focused (all about you) and we dont want our carefully laid out strategy destroyed by a bank staff member cause they do not give one rip about your short, medium and longer term goals.

@Brady is excluded of course

 

There's no loyalty :-(

Is this for a PPOR or an IP? If the former - I'd be taking your business elsewhere if possible/feasible.

Cheers

Jamie

 

Its an IP and I'm happy to move to get better deal. Suncorp is offering 4.32% but as some posts mentioned here, I'm worried they'll be more tricky in getting equity released in future and tougher on serviceability

ps sorry hijacking thread a bit

 

Suncorp also super slow - you'll be grey by the time you get approval

 

Which credit card did you choose? Apart from the travel insurance, is the points system any good? I've had a $1500 limit credit card with them earlier this year because of the $250 cashback offer. But I cancelled it this week, only ever occasionally bought groceries with it.

 

i use the Diamond i get on average a $100 gift voucher every second month by using the point system. which is pretty good but they're changing all the points for all the cards in july :/

 

We just went with a gold card. 4k limit. The points are er pointless (eventually we'll get something but will take a while)....but even with the gold card the travel insurance is good.

Diamond and platinum are better....but then you need a huge limit.....

 

I've got the wealth package and cba credit cards. Didn't know there was travel insurance with it. Do you have to register overseas trips before you go?

 

Don't have to. But the insurance is much better if you do. You just click a few buttons in NetBank to do it. It's very slick.

 

Can't wait to take advantage of this feature when I finally get the chance to travel again

 

Just a FYI - if it's the $395 yearly fee that is the main issue - this fee is waived if you qualify for CBA Private Bank or CBA Private Office

However if you actually qualify for Private Office I don't think you should be worrying about the $395 yearly fee