Commonwealth Bank foreign currency account: Review & comparison
Last updated : 1st August 2024
CommBank offers a foreign currency account for businesses to make secure global payments. But can it protect your profit margins? Let’s take a look.
Key takeaways
- You can send funds in 30 currencies and hold funds in 18+ currencies with CommBank
- The account can only be opened in-person at CommBank branches, not through its website
- There’s the potential to earn interest on selected currencies but debit interest rates apply when the account’s overdrawn
- Sending payments can incur a transaction fee of up to $30, while you might be charged up to $11 for receiving payments
For businesses that often make and receive international payments, CommBank offers foreign currency accounts with 18 supported currencies [1]. While there’s no monthly fee, you’ll need an existing CommBank account to apply for a foreign currency account.
This detailed review outlines the key features and fees of the CommBank account. We also compare CommBank with our alternative, the World Account, available to businesses in Australia, the UK, Singapore and other countries.
Table of Contents
What is the CommBank foreign currency account?
The CommBank business foreign currency account allows customers to make and receive payments worldwide and hold balances in other currencies.
CommBank, or Commonwealth Bank, is a multinational bank in Australia that provides customers and businesses with various financial services, including banking and insurance. Apart from Australia, it also has branches in New Zealand, Europe, Asia and the US.
Key features of CommBank’s multi-currency account
You can send, receive, and hold funds in 18+ currencies, including USD, GBP, CAD, HKD, JPY, and NZD [1]. Payments can be made directly from your international balances without converting them into Australian dollars.
The multi-currency account can be accessed online with CommBank’s mobile app or website.
There’s also the potential to earn interest on selected currencies, including NZD and ZAR. However, the interest rate depends on the amount of funds in your account.
CommBank charges debit interest rates if the account is overdrawn [2]. The exact credit and debit interest rates vary according to the currencies.
Pros and cons of a CommBank foreign currency account
| Pros | Cons |
|---|---|
|
|
CommBank fees and rates: The breakdown
| CommBank foreign currency account fees* [4] | |
|---|---|
| Monthly fee | Free |
| Setting up a multi-currency account | Free, but you need to have a CommBank AUD transaction account already |
| Receiving funds | Up to $11 per transaction |
| Holding funds in multiple currencies | CommBank charges a credit deposit fee on some currencies |
| Sending payments to other CommBank accounts | No transaction fees A currency conversion fee applies in the case of a cross-currency transfer |
| Sending payments to other accounts |
|
| Changing payment instructions or cancelling the transaction | $25 |
| Withdrawing foreign currency notes | 1% of the total transaction amount |
| Additional overseas bank fees for same-currency transfers | CommBank charges additional fees on some same-currency transfers to cover charges from correspondent banks
|
*Fees as checked in May 2024
There are a few things to note about CommBank’s fees:
Indirect monthly maintenance fees
You must have a CommBank AUD transaction account to open a multi-currency account. Although there are no monthly fees for setting up a multi-currency account, the AUD account may come with its own monthly fees. [1]
Extra intermediary fees for sending payments
CommBank states that it pays fees to correspondent banks where foreign exchange is involved (when the sending currency is different from the currency being received). The payee’s bank may also charge processing fees. All of these fees must be paid by the CommBank account holder making the transaction [4].
Who can open a CommBank business foreign currency account?
To open a business foreign currency account with CommBank, you need to meet the following criteria [3]:
- You must be 18 years old or above
- You must have an approved CommBank AUD transaction account
- Domestic businesses need to provide their ABN or ACN
- Foreign companies in Australia must be registered with ASIC
The eligibility criteria for foreign companies not registered with ASIC are subject to CommBank review on a case-by-case basis.
How to apply for a CommBank foreign currency account
You can only open a business foreign currency account by visiting a CommBank branch – there’s no option to do it online [3].
Since you need an existing CommBank account to open a foreign currency account, the bank already has most of the required information and documents when you apply. You’ll only need to fill out a form and provide some extra supporting documents.
CommBank alternative: WorldFirst
WorldFirst allows global businesses to make easy, fast and secure international payments in over 90 currencies across 130+ countries and regions, with more currencies being added regularly.
You can set up multi-currency accounts for free in 15+ currencies, including GBP, USD, CAD, EUR, AUD, NZD, and CNH, and pay zero monthly fees.
With a World Account, you can:
Get paid like a local: Set up local currency accounts with bank account details, no overseas address needed
Make supplier payments worldwide: Pay suppliers, staff and invoices in 40+ currencies with competitive exchange rates.
Protect your profit margins: Lock in exchange rates for up to 24 months to manage currency risks and protect your cash flow against sudden currency fluctuations
Make instant payments: Payments in the same currency are free and instant between World Accounts
Seamlessly integrate with marketplaces: Collect payments from 100+ marketplaces and payment gateways, including Amazon, eBay, AliExpress, and Stripe
If you’re still unsure about WorldFirst vs CommBank, check out our comparison of fees.
| CommBank foreign currency account fees [4] | WorldFirst fees | |
|---|---|---|
| Monthly fee | Free | Free |
| Opening a multi-currency account | Free, but you need to have a CommBank AUD transaction account | Free |
| Receiving funds | Up to AUD 11 per transaction | Free |
| Holding funds in multiple currencies | CommBank charges a credit deposit fee on some currencies | Free |
| Sending payments to other CommBank/WorldFirst accounts | Free Currency conversion fees still apply in case of cross-currency transfer |
Free and instantCurrency conversion fees still apply in case of cross-currency transfers |
| Sending payments to non Commbank/WorldFirst accounts |
|
[Fixed transaction fee] + up to 0.6% currency conversion fee(0.8% for 1688 payments) |
Sources:
- https://www.commbank.com.au/business/international/international-payments/foreign-currency-accounts.html#currencies
- https://www.commbank.com.au/content/dam/commbank/business/pds/CBA3633.pdf
- https://www.commbank.com.au/content/dam/tmd/Foreign-Currency-Account–Business-Foreign-Currency-Account/foreigncurrencyaccountbusinessforeigncurrencyaccount-tmd.pdf
- https://www.commbank.com.au/content/dam/commbank/personal/apply-online/download-printed-forms/ADB1784.pdf
- Open 15+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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