Business-Banking-Aug-2012.Pdf

Report No. 14 September 2012

IN THIS REPORT: We research & rate the suite of business banking products: • 113 term loans • 42 credit cards • 63 overdrafts • 85 deposit accounts

MIXED MESSAGES GOING OUT TO BUSINESS

he economy is robust and well placed to deal with Europe’s crisis, according to Reserve Bank governor Glenn Stevens. Unemployment is in the low 5s and inflation is hovering on the borderline, leading to another round of T economic commentary on the likelihood of a further rate cut. However, the last two rate cuts in May and June seem to have done little to bolster confidence, a fact borne out by various surveys which show business sentiment still in negative territory. Sure, the Aussie dollar is holding up well but just how advantageous this is depends which side of the ledger you’re on. It’s great if you’re buying but not-so-great if you’re selling.

Despite the mixed messages that are out there, on the ground there’s no doubt that business is not exactly booming, particularly in the retail and manufacturing sectors. Most people have pulled their horns in and are treading cautiously. Naturally this involves examining the business in minute detail, watching incomings and outgoings and trying to identify more efficient ways of increasing trade.

Business owners continue to tread warily on a trading path largely littered with land mines which seem to pop up with monotonous regularity. First it was GFC Mark 1, then the natural disasters across much of the country, a flat retail sector at home, high Aussie dollar abroad and now we are told we could be heading towards GFC Mark 2. It’s no wonder business confidence is at its lowest level since the original global financial crisis.

The Sensis Business Index showed confidence fell from 44% to 28% during the June quarter – one of the largest quarterly falls seen in business confidence in the 18-year-history of the report. This was only surpassed at the peak of the GFC and during the introduction of the GST.

There’s no doubt Australian business owners are struggling, with many putting on a brave face and hoping to ride it through. Just as many though are seriously considering their options.

SMALL BUSINESS BANKING AWARD MEASURES VALUE TO SMEs

very 12 months CANSTAR undertakes a comprehensive research exercise to identify overall banking value given to small business owners. We define the institution that we believe offers outstanding value through a highly E featured business banking product suite, as well as providing exceptional service to small businesses. In order to rate the latter, points were given in areas such as relationship manager availability, extensive branch

YOUR GUIDE TO PRODUCT EXCELLENCE coverage, online banking capability and advice, and other general services designed to help small business in their day- to-day running. Naturally, at the heart of this national award is a strong product offering. This includes business lending products, credit cards, overdrafts and deposit accounts

The number of products is sizeable – 113 terms loans, 63 overdrafts, 42 credit cards and 85 deposit accounts – making comparing complicated and something small business has neither the idle staff nor the inclination to do.

The award aims to give recognition to the institution that backs up quality products with great service to small businesses. Factors that were assessed in determining the Small Business Banking Award winner were:

Products

• Lending - Lending is the lifeblood of many small businesses and we assess both term loans and overdrafts to find the best products.

• Credit Cards - Increasingly used by small business to pay for inputs and, in some cases, used as a substitute for a formal overdraft for short term cashflow purposes.

• Deposit accounts - Transaction accounts used daily by small business to accept payments, pay suppliers and keep track of cashflow. While savings accounts provide business with a place to park spare working capital.

Institutional Factors

• Relationship Managers - Businesses and business owners have particular needs. That’s why it’s very important that financial institutions provide specialists who understand the challenges of small business. We looked at the number of small business managers provided, the number of customers each manager has in their portfolio and the number of branches they have to cover.

• Branch coverage - While branches may be seen as less relevant given the explosion of online services, they still play an important role for small business, particularly those that deal with cash. Branches are also important when there’s a problem so you can speak to a person who knows your business needs.

• Online Functionality - Online functionality has become increasingly important in the management of a small business today. The ability to go online to check balances and transactions, pay suppliers and staff and of course, accept payments from customers is fully integrated into today’s business practices. Any shortfall in functionality here is just another issue that the small business owner can do without.

• Other business services and advice - Specialist services such as equipment finance, risk management products and access to business insurance specialists are part of the extended range of services we include in our comparison. We also look at the provision of small business seminars, education and tools to ensure the institution is going that little bit above and beyond to support small business in Australia.

See the methodology document for full list of what we assessed and the weightings used.

COMMONWEALTH TRIUMPHS AGAIN

omparing business banking products is complicated and something small business has neither the idle staff nor the inclination to do. That’s why CCANSTAR undertakes an annual comparison of products and services of use to small business.

The Commonwealth Bank proved last year was no fluke by topping the point scores again this time around. The Commonwealth’s core strength lies in all business product areas compared - term loans, overdrafts, credit cards and deposit accounts. The bank’s continued focus on business banking expansion seems to be paying dividends through a better business customer experience.

YOUR GUIDE TO PRODUCT EXCELLENCE 2 CommBiz Cashflow tracker, for instance, essentially gives users of the CommBiz online banking platform access to sophisticated cashflow graphing and reporting through the BetterBusiness Insights’ cashflow tracker. The cashflow data automatically updates every month because the tools are integrated to give a streamlined result which can be very helpful in tracking the ins and outs of the business. Both CommBiz and NetBank platforms provide world class security, real time banking, everyday settlement, international payments and 24/7 service desk assistance from the Business Banking team. This is definitely not a generic call centre with no business expertise!

The Commonwealth Bank is also investing heavily in technology which will change the way business payments are made. Following on from the success of mobile phone payment app, Kaching, CommBank is now rolling out its Pi payment platform for business which uses smartphone touch interface to purchase, refund, split the bill and a whole lot more at the point of sale. Pi’s functionality also includes transforming your iPod or iPhone into a fast, secure card payment method on the go – perfect for so many business transactions, and this is only the start.

CANSTAR congratulates the Commonwealth Bank for providing the best overall value banking services to small business across Australia.

COPYRIGHT © CANSTAR Pty Limited ABN 21 053 646 165, 2008. The recipient must not reproduce or transmit to third parties the whole or any part of this work, whether attributed to CANSTAR or not, unless with prior written permission from CANSTAR, which if provided, may be provided on conditions.

DISCLAIMER To the extent that any CANSTAR data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR Pty Limited ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR’s FSG for more information at www.canstar.com.au

BUSINESS CONFIDENCE TAKES A DIVE

YOUR GUIDE TO PRODUCT EXCELLENCE 3 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Cash Manager

Product Account Minimum Interest Branch ATM Account Interest rate Company Keeping Upfront Access Facility Balance to $100,000 Fees, ($) Deposit Waive Base Calculated Paid Fee  Outstanding Value Citibank Ultimate Business Saver NilNo minDaily Monthly   N/A 4.10% Greater Building Society Business Optimiser Account Nil12.75%Daily Quarterly   N/A Hume Building Society Business Cash Management Nil5000Daily Quarterly   N/A 3.00% IMB Business CMA 6.00m14.00%Daily Monthly   5000 Newcastle Permanent Business Cash Management Nil13.25%Daily Monthly   N/A Westpac Business Flexi NilNo minDaily Monthly   N/A 2.55%  B & E Personal Banking Business Advantage S30 Nil11.20%Daily Monthly   N/A Bank of Cyprus Australia Business Cheque Account 5.00m2000Daily Quarterly   2000 0.75% Bank of Cyprus Australia Business Cash Management 10.00m5000Daily Monthly   2000 2.50% Bankwest High Interest Transaction Ac 20mNo minDaily Monthly   N/A 3.50% BOQ Business Management Acc 15.00m13.80%Daily Monthly   20000 Commonwealth Bank Premium Business Account 15.00mNo minDaily Monthly   10000 0.70% Community CPS Australi SMALLBiz Account Nil100Daily Monthly   N/A 1.50% Companion CU SMALLBiz Account NilNo minDaily Monthly   N/A 1.50% Greater Building Society Business Access Account Nil11.75%Daily Semi-Annually   N/A Hume Building Society Business Account Nil11.75%Daily Quarterly   N/A IMB Business Transact Ac S25 6.00mNo minDaily Monthly   5000 0.50% People's Choice Credit U Business and Community Ac NilNo minDaily Monthly   N/A 2.50% United Community SMALLBiz Account Nil100Daily Monthly   N/A 1.50%  Bank of Melbourne Business Cheque Account Pl 15.00m10.50%Daily Monthly   N/A BankSA Business Cheque Account Pl 15.00m10.70%Daily Monthly   N/A BankSA Freedom Business Account 5.00m11.55%N/A N/A   N/A Bankwest Business Zero Transaction A NilNo minN/A N/A   N/A 0.00% bcu business access 20.00mNo minDaily Semi-Annually   N/A 1.70% Bendigo Bank Business Solutions 10.00m10.95%Daily Monthly   N/A BOQ Everyday Business Acc 10.00mNo minN/A N/A   5000 0.00% CairnsPenny Savings&L Business Cheque Acct S8 NilNo minDaily Monthly   N/A 0.25% Commonwealth Bank Standard Cheque Account 5.00mNo minMonthly Semi-Annually   N/A 0.05% Commonwealth Bank Business Transaction A/c 10.00mNo minN/A N/A   N/A 0.00% Heritage Bank Business Cheque Facility Nil100Daily Quarterly   N/A 0.02% Horizon Credit Union Business Savings Acc S11 NilNo minDaily Monthly   N/A 0.01% Newcastle Permanent Business Cheque Account 10.00m10.00%Daily Quarterly   10000 Northern Beaches CU Business Account S40 NilNo minDaily Quarterly   N/A 0.25% People's Choice Credit U Business Access NilNo minN/A N/A   N/A 0.00% RTA Staff CU Business Account S50 NilNo minDaily Annually   N/A 0.15% SCU Premier Business NilNo minMonthly Annually   N/A 0.45% SERVICE ONE Credit Un Business Account 10.00mNo minDaily Annually   N/A 0.05% St.George Bank Bus Cheque Account Plus 15.00m10.25%Daily Monthly   N/A St.George Bank Freedom Business Account 5.00m10.00%N/A N/A   10000 Suncorp Bank Business Everyday Account NilNo minN/A N/A   N/A 0.00% The Mutual Business Cheque Account Nil200Daily Semi-Annually   N/A 0.10% TIO Banking Essentials Business NilNo minDaily Quarterly   N/A 1.25% Westpac Business One - High Plan 15.00mNo minDaily Monthly   N/A 0.20% Westpac Business One- Low Plan 6.50mNo minN/A N/A   N/A 0.00%  Arab Bank Australia Premium Business Chq A/C 12.00m10.50%Daily Monthly   N/A your guide to product excellence July 2012. All rates current at July 25th 2012 BUSINESS CASH MANAGER SUMMARY: PAGE 1 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Cash Manager

Product Account Minimum Interest Branch ATM Account Interest rate Company Keeping Upfront Access Facility Balance to $100,000 Fees, ($) Deposit Waive Base Calculated Paid Fee  Bank of Melbourne Freedom Business Account 5.00m10.00%N/A N/A   N/A Bendigo Bank Business Account 10.00m10.01%Daily Monthly   N/A Coastline Credit Union Business Access S7 7.50m10.05%Monthly Monthly   N/A Holiday Coast CU Business Access AC S8 8.00mNo minN/A N/A   N/A 0.00% MyState Business Account 4.00mNo minN/A N/A   N/A 0.00% nab Business Cheque Account 10.00mNo minN/A N/A   N/A 0.00% Suncorp Bank Business Premium Account 20.00mNo minDaily Monthly   N/A 0.50% The Capricornian Essentials-Business NilNo minN/A N/A   N/A 0.00% The Capricornian Business Banking Account 5.00mNo minN/A N/A   N/A 0.00% The Rock Building Soc Business Cheque Account 8.00m100Daily Quarterly   5000 0.20%  ANZ Business Extra Account 22.00mNo minN/A N/A   N/A 0.00% nab Business Management A/c 20.00mNo minDaily Monthly   N/A 0.30% Summerland CU Business Plus Account 10.00mNo minN/A N/A   N/A 0.00%

your guide to product excellence July 2012. All rates current at July 25th 2012 BUSINESS CASH MANAGER SUMMARY: PAGE 2 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included Text218: Business High Transactor

Phone Product Account Min ATM Facility Direct Credit Sweep Maximum Interest rate Company Keeping Fees, opening banking Facility ATM $5,000 ($) balance Withdrawal

 Outstanding Value Bankwest Business Zero Transaction A Nil No min    1000.00/d 0.00% Commonwealth Bank Business Transaction A/c 10.00m No min    2000.00/d 0.00% Hume Building Society Business Cash Management Nil 5000    2000.00/d 2.25% Suncorp Bank Business Everyday Account Nil No min    1000.00/d 0.00% Westpac Business One - High Plan 15.00m No min    2000.00/d 0.01%  Arab Bank Australia Premium Business Chq A/C 12.00m 10.10%    1000.00/d Bank of Cyprus Australia Business Cash Management 10.00m 5000    1000.00/d 0.50% Bank of Cyprus Australia Business Cheque Account 5.00m 2000    1000.00/d 0.10% Bank of Melbourne Business Cheque Account P 15.00m 10.01%    1000.00/d BankSA Business Cheque Account P 15.00m 10.01%    1000.00/d Bankwest High Interest Transaction Ac 20m No min    1000.00/d 3.50% BOQ Everyday Business Acc 10.00m No min    1000.00/d 0.00% Citibank Ultimate Business Saver Nil No min    1000.00/d 4.10% Commonwealth Bank Standard Cheque Account 5.00m No min    2000.00/d 0.05% Commonwealth Bank Premium Business Account 15.00m No min    2000.00/d 0.01% Hume Building Society Business Account Nil 10.50%    2000.00/d IMB Business CMA 6.00m 13.25%    1000.00/d St.George Bank Bus Cheque Account Plus 15.00m 10.01%    1000.00/d Suncorp Bank Business Premium Account 20.00m No min    1000.00/d 0.00% Westpac Business One- Low Plan 6.50m No min    2000.00/d 0.00%  ANZ Business Extra Account 22.00m No min    1000.00/d 0.00% B & E Personal Banking Business Advantage S30 Nil 10.50%    1520.00/d Bank of Melbourne Freedom Business Account 5.00m 10.00%    2000.00/d BankSA Freedom Business Account 5.00m 10.01%    1000.00/d bcu business access 20.00m No min    1000.00/d 0.25% Bendigo Bank Business Solutions 10.00m 10.01%    1000.00/d BOQ Business Management Acc 15.00m 10.00%    1000.00/d CairnsPenny Savings&L Business Cheque Acct S8 Nil No min    N/A 0.01% Coastline Credit Union Business Access S7 7.50m 10.05%    1000.00/d Community CPS Australi SMALLBiz Account Nil 100    1000.00/d 0.05% Companion CU SMALLBiz Account Nil No min    1000.00/d 0.05% Greater Building Society Business Optimiser Account Nil 11.00%    1500.00/d Greater Building Society Business Access Account Nil 10.50%    1500.00/d Heritage Bank Business Cheque Facility Nil 100    1000.00/d 0.02% Horizon Credit Union Business Savings Acc S11 Nil No min    1000.00/d 0.01% IMB Business Transact Ac S25 6.00m No min    1000.00/d 0.25%

your guide to product excellence

July 2012. All rates current at July 25th 2012 HIGH TRANSACTOR SUMMARY: PAGE 1 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included Text218: Business High Transactor

Phone Product Account Min ATM Facility Direct Credit Sweep Maximum Interest rate Company Keeping Fees, opening banking Facility ATM $5,000 ($) balance Withdrawal

 nab Business Management A/c 20.00m No min    1000.00/d 0.01% nab Business Cheque Account 10.00m No min    1000.00/d 0.00% Newcastle Permanent Business Cheque Account 10.00m 10.00%    1000.00/d Northern Beaches CU Business Account S40 Nil No min    1000.00/d 0.05% RTA Staff CU Business Account S50 Nil No min    1000.00/d 0.08% SCU Premier Business Nil No min    1000.00/d 0.20% SERVICE ONE Credit Un Business Account 10.00m No min    1000.00/d 0.05% St.George Bank Freedom Business Account 5.00m 10.00%    2000.00/d The Capricornian Essentials-Business Nil No min    1000.00/d 0.00% The Capricornian Business Banking Account 5.00m No min    1010.00/d 0.00% The Mutual Business Cheque Account Nil 200    1000.00/d 0.01% United Community SMALLBiz Account Nil 100    1000.00/d 0.05%  Bendigo Bank Business Account 10.00m 10.01%    1000.00/d Holiday Coast CU Business Access AC S8 8.00m No min    1000.00/d 0.00% MyState Business Account 4.00m No min    1000.00/d 0.00% Newcastle Permanent Business Cash Management Nil 12.75%    1000.00/d Summerland CU Business Plus Account 10.00m No min    1000.00/d 0.00% The Rock Building Soc Business Cheque Account 8.00m 100    N/A 0.00% TIO Banking Essentials Business Nil No min    1000.00/d 0.25%  People's Choice Credit U Business and Community Ac Nil No min    1000.00/d 0.50% People's Choice Credit U Business Access Nil No min    1000.00/d 0.00% Westpac Business Flexi Nil No min    2000.00/d 0.00%

your guide to product excellence

July 2012. All rates current at July 25th 2012 HIGH TRANSACTOR SUMMARY: PAGE 2 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Low Transactor

Phone Product Account Min ATM Facility Direct Credit Sweep Maximum Interest rate Company Keeping Fees, opening banking Facility ATM (%) $5,000 ($) balance Withdrawal

 Outstanding Value Bank of Cyprus Australia Business Cheque Account 5.00m 2000    1000.00/d 0.10% Bankwest Business Zero Transaction A Nil No min    1000.00/d 0.00% Hume Building Society Business Cash Management Nil 5000    2000.00/d 2.25% Hume Building Society Business Account Nil 10.50%    2000.00/d Suncorp Bank Business Everyday Account Nil No min    1000.00/d 0.00% Westpac Business One - High Plan 15.00m No min    2000.00/d 0.01%  Bank of Cyprus Australia Business Cash Management 10.00m 5000    1000.00/d 0.50% BOQ Everyday Business Acc 10.00m No min    1000.00/d 0.00% Commonwealth Bank Business Transaction A/c 10.00m No min    2000.00/d 0.00% Community CPS Australi SMALLBiz Account Nil 100    1000.00/d 0.05% Companion CU SMALLBiz Account Nil No min    1000.00/d 0.05% Greater Building Society Business Access Account Nil 10.50%    1500.00/d Greater Building Society Business Optimiser Account Nil 11.00%    1500.00/d Heritage Bank Business Cheque Facility Nil 100    1000.00/d 0.02% Newcastle Permanent Business Cash Management Nil 12.75%    1000.00/d TIO Banking Essentials Business Nil No min    1000.00/d 0.25% United Community SMALLBiz Account Nil 100    1000.00/d 0.05% Westpac Business One- Low Plan 6.50m No min    2000.00/d 0.00%  Arab Bank Australia Premium Business Chq A/C 12.00m 10.10%    1000.00/d B & E Personal Banking Business Advantage S30 Nil 10.50%    1520.00/d BankSA Freedom Business Account 5.00m 10.01%    1000.00/d Bankwest High Interest Transaction Ac 20m No min    1000.00/d 3.50% Bendigo Bank Business Solutions 10.00m 10.01%    1000.00/d CairnsPenny Savings&L Business Cheque Acct S8 Nil No min    N/A 0.01% Citibank Ultimate Business Saver Nil No min    1000.00/d 4.10% Coastline Credit Union Business Access S7 7.50m 10.05%    1000.00/d Commonwealth Bank Standard Cheque Account 5.00m No min    2000.00/d 0.05% Commonwealth Bank Premium Business Account 15.00m No min    2000.00/d 0.01% Horizon Credit Union Business Savings Acc S11 Nil No min    1000.00/d 0.01% IMB Business CMA 6.00m 13.25%    1000.00/d IMB Business Transact Ac S25 6.00m No min    1000.00/d 0.25% Newcastle Permanent Business Cheque Account 10.00m 10.00%    1000.00/d People's Choice Credit U Business and Community Ac Nil No min    1000.00/d 0.50% People's Choice Credit U Business Access Nil No min    1000.00/d 0.00% RTA Staff CU Business Account S50 Nil No min    1000.00/d 0.08% SCU Premier Business Nil No min    1000.00/d 0.20% St.George Bank Freedom Business Account 5.00m 10.00%    2000.00/d your guide to product excellence

July 2012. All rates current at July 25th 2012 BUSINESS LOW TRANSACTOR SUMMARY: PAGE 1 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Low Transactor

Phone Product Account Min ATM Facility Direct Credit Sweep Maximum Interest rate Company Keeping Fees, opening banking Facility ATM (%) $5,000 ($) balance Withdrawal

 The Capricornian Essentials-Business Nil No min    1000.00/d 0.00% The Capricornian Business Banking Account 5.00m No min    1010.00/d 0.00% The Mutual Business Cheque Account Nil 200    1000.00/d 0.01%  ANZ Business Extra Account 22.00m No min    1000.00/d 0.00% BankSA Business Cheque Account Pl 15.00m 10.01%    1000.00/d bcu business access 20.00m No min    1000.00/d 0.25% Bendigo Bank Business Account 10.00m 10.01%    1000.00/d BOQ Business Management Acc 15.00m 10.00%    1000.00/d nab Business Management A/c 20.00m No min    1000.00/d 0.01% nab Business Cheque Account 10.00m No min    1000.00/d 0.00% SERVICE ONE Credit Un Business Account 10.00m No min    1000.00/d 0.05% St.George Bank Bus Cheque Account Plus 15.00m 10.01%    1000.00/d Suncorp Bank Business Premium Account 20.00m No min    1000.00/d 0.00% The Rock Building Soc Business Cheque Account 8.00m 100    N/A 0.00%  Holiday Coast CU Business Access AC S8 8.00m No min    1000.00/d 0.00% MyState Business Account 4.00m No min    1000.00/d 0.00% Westpac Business Flexi Nil No min    2000.00/d 0.00%

your guide to product excellence

July 2012. All rates current at July 25th 2012 BUSINESS LOW TRANSACTOR SUMMARY: PAGE 2 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Online Saver

Account Account Minimum Interest Branch ATM Interest rate Product Balance Company Keeping Upfront Access Facility $100,000 Required to Fees, ($) Deposit Calculated Paid Waive Base Fee, ($)  Outstanding Value Arab Bank Australia Online Savings Business NilNo minDaily Monthly   N/A 4.30% Bank of Cyprus Australia Midas Business Account NilNo minDaily Monthly   N/A 4.65% BOQ Business WebSavings Acc NilNo minDaily Monthly   N/A 5.00% ING DIRECT Business Optimiser NilNo minDaily Monthly   N/A 5.25% RaboDirect HISA Call Business NilNo minDaily Monthly   N/A 5.25%  AMP Bank Business eASYSAVER NilNo minDaily Monthly   N/A 4.35% Bank of Melbourne Business Access Saver Nil14.00%Daily Monthly   N/A BankSA Business Access Saver Nil14.00%Daily Monthly   N/A Commonwealth Bank Business Online Saver NilNo minDaily Monthly   N/A 3.50% Community First CU FirstBiz Online Savings NilNo minDaily Monthly   N/A 3.95% IMB Business CMA 6.00m14.00%Daily Monthly   5000 ME Bank Business Investment Acct NilNo minDaily Monthly   N/A 4.25% St.George Bank Business Access Saver Nil13.85%Daily Monthly   N/A Suncorp Bank Business Saver Account NilNo minDaily Monthly   N/A 3.75% The Mutual Business Internet Saver Nil5000Daily Monthly   N/A 4.00% Westpac Business Cash Reserve NilNo minDaily Monthly   N/A 3.50%  ANZ Business Online Saver NilNo minDaily Monthly   N/A 5.00% ANZ Business Premium Saver NilNo minDaily Monthly   N/A 2.75% Bank of Cyprus Australia Business Cash Management 10.00m5000Daily Monthly   2000 2.50% Bankwest Business Telenet SaverAc NilNo minDaily Monthly   N/A 3.50% Bankwest High Interest Transaction Ac 20mNo minDaily Monthly   N/A 3.50% Citibank Ultimate Business Saver NilNo minDaily Monthly   N/A 4.10% Community CPS Australi SMALLBiz Account Nil100Daily Monthly   N/A 1.50% Companion CU SMALLBiz Account NilNo minDaily Monthly   N/A 1.50% Greater Building Society Business Optimiser Account Nil12.75%Daily Quarterly   N/A Greater Building Society Business Access Account Nil11.75%Daily Semi-Annually   N/A Hume Building Society Business Cash Management Nil5000Daily Quarterly   N/A 3.00% Hume Building Society Business iSave NilNo minDaily Monthly   N/A 3.50% Hume Building Society Business Account Nil11.75%Daily Quarterly   N/A nab Business Cash Maximiser Nil10000Daily Monthly   N/A 3.50% Newcastle Permanent Business Cash Management Nil13.25%Daily Monthly   N/A People's Choice Credit U Business and Community Ac NilNo minDaily Monthly   N/A 2.50% People's Choice Credit U Business Online Account NilNo minDaily Monthly   N/A 3.65% RaboDirect Business PremiumSaver NilNo minDaily Monthly   N/A 4.85% The Capricornian E $aver Business Account S 5.00m12.00%Daily Monthly   5000 The Capricornian Savings Accumulator-Busine NilNo minDaily Monthly   N/A 4.25% The Mutual Business Maximiser 10m200Daily Quarterly   N/A 3.25% your guide to product excellence

July 2012. All rates current at July 25th 2012 BUSINESS ONLINE SAVER SUMMARY: PAGE 1 of 2 Report Date: July 2012, (Rates as at 25 July 2012) Business Deposit Account Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at July 25th 2012, Bonus/Promotional rates are included

Text218: Business Online Saver

Account Account Minimum Interest Branch ATM Interest rate Product Balance Company Keeping Upfront Access Facility $100,000 Required to Fees, ($) Deposit Calculated Paid Waive Base Fee, ($)  United Community SMALLBiz Account Nil100Daily Monthly   N/A 1.50% Westpac Business Flexi NilNo minDaily Monthly   N/A 2.55% Westpac Business Cash Reserve Bon NilNo minDaily Monthly   N/A 3.85%  B & E Personal Banking Business Advantage S30 Nil11.20%Daily Monthly   N/A BankSA Business Cheque Account Pl 15.00m10.70%Daily Monthly   N/A bcu business access 20.00mNo minDaily Semi-Annually   N/A 1.70% Bendigo Bank Business Solutions 10.00m10.95%Daily Monthly   N/A BOQ Business Management Acc 15.00m13.80%Daily Monthly   20000 Commonwealth Bank Premium Business Account 15.00mNo minDaily Monthly   10000 0.70% TIO Banking Essentials Business NilNo minDaily Quarterly   N/A 1.25%  Bank of Melbourne Business Cheque Account Pl 15.00m10.50%Daily Monthly   N/A BankSA Freedom Business Account 5.00m11.55%N/A N/A   N/A St.George Bank Bus Cheque Account Plus 15.00m10.25%Daily Monthly   N/A

your guide to product excellence

July 2012. All rates current at July 25th 2012 BUSINESS ONLINE SAVER SUMMARY: PAGE 2 of 2 Report Date: July 2012, (Rates as at 24 July 2012) Business Credit Cards Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you. Business Revolver

Annual Fee ($) Credit Limit ($) Rewards Company Product Published Free Rate (%) Days Program Annualised Fee Spend to Waive Min Max Available  Outstanding Value ANZ Business One - Low Rate 13.260 150.00 20000 1000 No max  Bankwest Bus MasterCard Low Rate 13.2545 39.00 N/A 5000 50000  Heritage Bank Visa Business Unsecured 12.9540 35.00 N/A 1000 50000   Bank of Melbourne BusinessVantage Visa 13.8855 55.00 N/A 500 No max  Commonwealth Bank Business Credit Card Low Rate 14.550N/A 0.00 2000 50000  Newcastle Permanent Business+ Credit Card 13.4544 55.00 N/A 500 No max  Queensland Country Credit Business Visa Card 13.2055 90.00 N/A 500 No max  Westpac BusinessChoice Everyday Card 14.2545 75.00 15000 2000 100000   ANZ Business One - Rewards 15.440N/A 150.00 1000 No max  BankSA Visa Business 17.1555 55.00 N/A 500 No max  Bankwest Bus MasterCard LargeRwds 17.9955 69.00 N/A 5000 50000  Bendigo Bank Business Credit Card 16.6444 48.00 N/A 2000 No max  Commonwealth Bank Business Awards 20.7455 100.00 N/A 2000 50000  Commonwealth Bank Business Credit Card Interest Fr 17.5755 60.00 N/A 2000 50000  Hume Building Society Business Credit Cards - Unsecur 15.3555 40.00 24000 5000 No max  nab Qantas Business Card 18.5044 144.00 N/A 5000 No max  St George Bank BusinessVantage Visa 17.1555 55.00 N/A 500 No max  Suncorp Bank Business Credit Card 18.4555 45.00 N/A 5000 No max  Westpac BusinessChoice Rewards Card 18.9945 150.00 N/A 2000 50000   ANZ Business One-Int Free Days 18.1944 150.00 N/A 1000 No max  ANZ Business One-Cash Rewards 18.7040 150.00 N/A 1000 No max  Commonwealth Bank Business Awards Gold 20.7455 150.00 N/A 4000 50000  Commonwealth Bank Business Awards Platinum 20.7455 300.00 N/A 8000 50000   Citibank Business Gold Card 20.7455 149.00 N/A 5000 60000  nab Velocity Business Amex 18.5055 149.00 N/A 5000 No max   Not rated# nab Bus Access (Unsec) Visa 10.520N/A 60.00 5000 No max 

your guide to product excellence # Additional customer margin applies to the published rate REVOLVER SUMMARY: Page 1 of 1 Report Date: July 2012, (Rates as at 24 July 2012) Business Credit Cards Star Ratings We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you. Business Transactor

Annual Fee ($) Credit Limit ($) Rewards Company Product Published Free Rate (%) Days Program Annualised Fee Spend to Waive Min Max Available  Outstanding Value Commonwealth Bank Business Awards Platinum 20.7455 300.00 N/A 8000 50000  Suncorp Bank Business Credit Card 18.4555 45.00 N/A 5000 No max  Westpac BusinessChoice Rewards Card 18.9945 150.00 N/A 2000 50000   Commonwealth Bank Business Credit Card Low Rate 14.550N/A 0.00 2000 50000  Commonwealth Bank Business Awards 20.7455 100.00 N/A 2000 50000  Commonwealth Bank Business Awards Gold 20.7455 150.00 N/A 4000 50000  nab Qantas Business Card 18.5044 144.00 N/A 5000 No max  Newcastle Permanent Business+ Credit Card 13.4544 55.00 N/A 500 No max  Westpac BusinessChoice Everyday Card 14.2545 75.00 15000 2000 100000  Westpac Altitude Business Gold MasterC 19.9945 150.00 N/A 5000 50000  Westpac Altitude Business Gold Visa Car 19.9945 150.00 N/A 5000 50000   ANZ Business One - Rewards 15.440N/A 150.00 1000 No max  ANZ Business One - Low Rate 13.260 150.00 20000 1000 No max  ANZ Business One-Cash Rewards 18.7040 150.00 N/A 1000 No max  ANZ Business One-Int Free Days 18.1944 150.00 N/A 1000 No max  Bank of Melbourne BusinessVantage Visa 13.8855 55.00 N/A 500 No max  BankSA Visa Business 17.1555 55.00 N/A 500 No max  Bankwest Bus MasterCard LargeRwds 17.9955 69.00 N/A 5000 50000  Bankwest Bus MasterCard Low Rate 13.2545 39.00 N/A 5000 50000  Bendigo Bank Business Credit Card 16.6444 48.00 N/A 2000 No max  Citibank Business Gold Card 20.7455 149.00 N/A 5000 60000  Commonwealth Bank Business Credit Card Interest Fr 17.5755 60.00 N/A 2000 50000  Diners Club Int Business Card N/A*51 95.00 N/A No min No max  Hume Building Society Business Credit Cards - Unsecur 15.3555 40.00 24000 5000 No max  nab Business ChargeCard Visa 15.5035 108.00 N/A 5000 No max  nab Business Charge Card MCD 15.5035 108.00 N/A 5000 No max  Queensland Country Credit Business Visa Card 13.2055 90.00 N/A 500 No max  St George Bank BusinessVantage Visa 17.1555 55.00 N/A 500 No max  Westpac Altitude Business Credit Cards 19.9945 100.00 N/A 1000 30000   American Express Platinum Business Card N/A*51 1200.00 N/A 0 No max  American Express Business Gold Card N/A*51 169.00 N/A 0 No max  American Express Velocity Business Card N/A*51 249.00 N/A 0 No max  Heritage Bank Visa Business Unsecured 12.9540 35.00 N/A 1000 50000   American Express Business Card N/A*51 109.00 N/A 0 No max  American Express Qantas BusinessCard N/A*51 299.00 N/A 0 No max  nab Velocity Business Amex 18.5055 149.00 N/A 5000 No max   Not rated# nab Bus Access (Unsec) Visa 10.520N/A 60.00 5000 No max  your guide to product excellence * N/A represents product is a Charge Card TRANSACTOR SUMMARY: Page 1 of 1 # Additional customer margin applies to the published rate Business Banking Star Ratings Report Date: AUGUST 2012

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

Term Loan - Secured by Commercial Property

Loan Fees ($50k) Loan Amount Company Name Product Published Rate (%) Maximum Loan Application Annualised Minimum Maximum Term

* * * * * ""outstanding value

ANZ Business Loan Var 7.77 to 8.27 1,875.00 750 50000 No Max 15 yrs Bankwest Business FeeSaver Loan - All Sec 7.25 and higher 0.00 Nil 20000 No Max No max Commonwealth Bank BBL Var Non-Res Secured 9.59 1,250.00 456 25000 No Max 15 yrs nab Bus Opts IO Standard 7.31 and higher 600.00 360 20000 No Max 15 yrs Suncorp Bank Business Essentials- Commercial sec 7.43 to 7.93 800.00 Nil 10000 1000000 20 yrs Westpac Business One Ln -Com 5.93 to 8.43 1,500.00 1200 250000 No Max 15 yrs

* * * *

Bankwest Business Low Rate Loan- All Sec 7.05 and higher 1,250.00 240 20000 No Max No max BOQ Term Loan Oth Sec Var 9.35 and higher 1,875.00 240 10000 No Max 15 yrs Greater Building Society Term Loan Var - Commercial Sec 8.25 1,250.00 48 30000 No Max 15 yrs Heritage Bank Fully Drawn Non-Res Sec - Variable 7.94 2,500.00 120 20000 No Max 15 yrs nab Bus Opts Instal Var Std 7.31 and higher 600.00 360 20000 No Max No max Newcastle Permanent Commercial Bus Loan Var 7.64 and higher 625.00 Nil 0 No Max 20 yrs Westpac Business Equity Access 7.26 820.00 120 20000 1000000 No max Westpac Business LoanVar com sec 8.14 to 8.89 820.00 420 20000 No Max 15 yrs

* * *

BankSA Commercial Loan Variable 9.50 and higher 700.00 480 20000 No Max 15 yrs

your guide to product excellence

Report Date: August, 2012 (Based on information as on 30 June 2012) BUSINESS BANKING STAR RATINGS 2012 - PAGE 1 Business Banking Star Ratings Report Date: AUGUST 2012

Term Loan - Secured by Commercial Property

Loan Fees ($50k) Loan Amount Company Name Product Published Rate (%) Maximum Loan Application Annualised Minimum Maximum Term

* * *

Beirut Hellenic Bank Business Loan Variable 10.68 and higher 1,750.00 600 0 No Max 10 yrs Beirut Hellenic Bank Commercial Loan Variable 10.03 and higher 1,750.00 600 0 No Max 15 yrs CairnsPenny Savings&Loan Bus Ln Variable-Comm Sec 8.1 1,250.00 60 20000 1000000 10 yrs Hume Building Society Commercial Ln (comm sec) 6.60 to 8.40 600.00 Nil 0 No Max 15 yrs ING DIRECT Comm PropertyLn Variable 7.13 500.00 Nil 250000 2000000 15 yrs ING DIRECT Commercial Equity Loan 8.48 500.00 Nil 250000 2000000 5 yrs People's Choice Credit Union Business Loan Var - Comm Sec 8.48 1,875.00 625 50000 1000000 25 yrs St.George Bank Commercial Loan Variable 9.25 and higher 600.00 480 50000 No Max 15 yrs

your guide to product excellence

Report Date: August, 2012 (Based on information as on 30 June 2012) BUSINESS BANKING STAR RATINGS 2012 - PAGE 2 Business Banking Star Ratings Report Date: AUGUST 2012

Term Loan - Secured by Residential Property

Loan Fees ($50k) Loan Amount Company Name Product Published Rate (%) Maximum Loan Application Annualised Minimum Maximum Term

* * * * * ""outstanding value

ANZ Bus Mortgage Loan Var 8.81 1,875.00 360 25000 2000000 30 yrs ANZ Business Loan Var 7.77 to 8.27 1,875.00 750 50000 No Max 15 yrs Bankwest Business FeeSaver Loan - Res Sec 7.25 to 7.50 0.00 Nil 20000 No Max No max Commonwealth Bank BBL Var Res Secured 7.91 600.00 96 25000 No Max 30 yrs nab Bus Opts IO Standard 7.31 and higher 600.00 360 20000 No Max 15 yrs Suncorp Bank Business Essentials-Residential sec 6.93 800.00 Nil 10000 1000000 25 yrs

* * * *

BOQ Term Loan Res Sec Var 8.60 and higher 1,875.00 240 10000 No Max 25 yrs Greater Building Society Term Loan Var - Residential Sec 7.3 1,250.00 48 30000 No Max 25 yrs Hume Building Society Commercial Ln (res sec) 6.60 to 7.90 600.00 Nil 0 No Max 25 yrs nab Bus Opts Instal Var Std 7.31 and higher 600.00 360 20000 No Max No max Newcastle Permanent Residential Bus Loan Var 6.93 600.00 Nil 0 No Max 30 yrs Westpac Business Equity Access 7.26 820.00 120 20000 1000000 No max Westpac Business LoanVar res sec 8.14 820.00 120 20000 1000000 25 yrs Westpac Business One Ln -Res 5.93 to 8.43 1,500.00 1200 250000 No Max 25 yrs

* * *

AMP Bank Classic Variable Rate 7.07 600.00 120 40000 500000 30 yrs

your guide to product excellence

Report Date: August, 2012 (Based on information as on 30 June 2012) BUSINESS BANKING STAR RATINGS 2012 - PAGE 3 Business Banking Star Ratings Report Date: AUGUST 2012

Term Loan - Secured by Residential Property

Loan Fees ($50k) Loan Amount Company Name Product Published Rate (%) Maximum Loan Application Annualised Minimum Maximum Term

* * *

ANZ Business Saver 8.31 1,875.00 240 50000 2000000 30 yrs BankSA Business Loan Variable 8.47 and higher 700.00 168 30000 No Max 15 yrs Bankwest Business Low Rate Loan- Res Secured 7.05 1,250.00 240 20000 No Max No max Beirut Hellenic Bank Business Loan Variable 10.68 and higher 1,750.00 600 0 No Max 10 yrs Beirut Hellenic Bank Commercial Loan Variable 10.03 and higher 1,750.00 600 0 No Max 15 yrs CairnsPenny Savings&Loan Bus Ln Variable-Resi Sec 8.1 1,250.00 60 20000 1000000 15 yrs Heritage Bank Fully Drawn Res Sec - Variable 7.09 2,500.00 120 20000 No Max 25 yrs ING DIRECT Comm PropertyLn Variable 7.13 500.00 Nil 250000 2000000 15 yrs People's Choice Credit Union Business Loan Var - Res Sec 7.48 1,875.00 625 50000 1000000 25 yrs St.George Bank Business Loan Variable 8.22 and higher 600.00 168 0 No Max 25 yrs

your guide to product excellence

Report Date: August, 2012 (Based on information as on 30 June 2012) BUSINESS BANKING STAR RATINGS 2012 - PAGE 4 METHODOLOGY METHODOLOGY

What are the CANSTAR business banking star ratings?

CANSTAR business banking star ratings is a sophisticated rating methodology, unique to CANSTAR, which compares the dominant business banking products in Australia. The ratings are aimed at small businesses of varying sizes, with profiles and loan sizes to suit. The specific loan and deposit values are outlined below, and range up to $500,000.

The results are reflected in a consumer-friendly 5-star concept. The star ratings from the CANSTAR business banking star ratings go from a rising star through to a 5-star product signifying outstanding value.

Rising Stars are allocated to those products that would be rated 5-star or higher but have not been in the market for over six months. Rising Star products will be formally rated in the next rating period once more historical data is available for the applicable product area.

The three business banking products that are given star ratings include:

1. Business Loans 2. Business Deposits 3. Business Credit Cards

What is the CANSTAR small business banking award?

In conjunction with the business banking star ratings, CANSTAR Best Value Australia: Small Business Banking is awarded to the institution that provides the best combination of products across the business banking star ratings profiles, as well as excelling in a range of institutional factors. The award aims to give recognition to the institution that backs up quality products with great service to small businesses. Institutional factors that were considered include:

• Branch coverage • Relationship Manager Availability • Online Banking Functionality • Other business Services & Advice

The breakdown of weighting for each category is displayed in the following methodology tree.

Small Business Banking Award – Methodology Tree

Term Loans Residential (80%) and Commercial (20%) 60%

Loans 60% Overdraft Residential (80%) and Commercial (20%) 40%

Revolver 40% Credit Cards Products 20% Transactor

Institution’s business 60% banking products 75%

Online Saver Deposit profile 15%

Full Access Saver Deposit profile Deposit 15% Accounts 20% High Transactor Deposit profile 35% Institutional Factors Institution’s business Low Transactor Deposit profile banking capabilities Branch 35% 25% Coverage 35%

Relationship Manager Ratio 35%

Online Banking Functionality 20%

Other Business Services & Advice 10%

Page 2 of 9 Business loan star ratings

To arrive at the total score CANSTAR applies a weight (w) against the P and F. This weight will vary for each product category and will reflect the relative importance of either costs or features in determining the best business loan. This method can be summarised as:

TOTAL SCORE ( T ) = PRICING ( P ) + FEATURES SCORE ( F ) Refer to Table 2

Avg. Customer Refer to Table 1 Margin – Total Cost 50% Scenario 1 33% Pricing Based on AAPR

40-50% Scenario 2 Scenarios 33% 50%

Features Based on 11 Scenario 3 different feature 33% categories 50-60%

Residential and Commercial-secured Term Loans and Overdrafts were eligible to be considered in the business loan star ratings. CANSTAR understands that businesses use different forms of security. We also understand that some businesses require a one-time loan while others require access to a revolving line of credit. CANSTAR has separated the business loan star ratings into the four categories listed in TABLE 1 in recognition of these differences.

TABLE 1 also highlights the contribution of the pricing and features value components for each of the four categories

TABLE 1 - Business loan star ratings components

PRODUCT CATEGORY PRICING FEATURES

Residential Secured Term Loans 50% 50%

Commercial Secured Term Loans 50% 50%

Residential Secured Overdrafts 40% 60%

Commercial Secured Overdrafts 40% 60%

Pricing component

The purpose of the business loan star ratings is to determine which products are best suited for a broad cross-section of business loan users. Because of this general focus, CANSTAR calculated the total cost for each product using a combination of the base rate, customer margins supplied by institutions, upfront and ongoing fees on two different loan amounts and for also three different business scenarios (see TABLE 2). The product with the lowest average total cost is then awarded the highest pricing score for the product category to which it belongs.

Page 3 of 9

TABLE 2

RESIDENTIAL PROPERTY SECURITY COMMERCIAL PROPERTY SECURITY

TERM LOAN OVERDRAFT TERM LOAN OVERDRAFT

AMOUNT 1 $250,000 (50%) $50,000 (50%) $250,000 (50%) $50,000 (50%)

AMOUNT 2 $500,000 (50%) $125,000 (50%) $500,000 (50%) $125,000 (50%)

Features component

More than 100 individual features of each loan and overdraft is scored for positive traits and awarded a FEATURES score. Table 3 below highlights the contribution of the various groups of information to award the business loan FEATURES score.

TABLE 3 – Business Loan Feature Weights

Feature Category Term Loans Overdrafts Lending Terms 25% 20% Security Accepted 5% 5% Redraw Facility 15% 0% Relationship Bonus 10% 0% Lending Area 5% 5% Portability 5% 5% Loan Purposes Availability 10% 10% Repayment Capabilities 10% 0% Split Facility 5% 0% Switching Facility 5% 0% Overdraft Terms 0% 50% Online Security 5% 5%

Page 4 of 9 Business deposit account star ratings

To arrive at the total score CANSTAR applies a weight (w) against the P and F. This weight will vary for each customer profile and will reflect the relative importance of either costs or features in determining the best business deposit account. This method can be summarised as:

TOTAL SCORE ( T ) = PRICING ( P ) + FEATURES SCORE ( F )

Refer to Table 4 18 month total interest calculation (online saver profile only) Refer to Table 6 Rates 50% For average Historical rates & balances current rate calculation 10-75% 6 month historical Pricing average total rate 50% 60-75% Scenario Fees Customer transaction scenario 25-90% Refer to Table 5 For transaction numbers and weightings

Branch Refer to Table 7 Locations Across Australia 20% Features 30-65% Features 25-40% Product Specific Features Conditions Across 3 categories 20-50% 80%

Online Security 15-20% Refer to Table 4

Business Cash Management accounts, Business Transaction Accounts and Business Internet Accounts are eligible to be included in the Business deposit account star ratings. CANSTAR realizes that different businesses use deposit accounts differently and has established the following four behaviour profiles.

• ONLINE SAVER • BUSINESS CASH MANAGER • LOW TRANSACTOR • HIGH TRANSACTOR

All eligible products are then assessed under the requirements established for each profile (see TABLE 4).

Page 5 of 9 TABLE 4- Business deposit account star ratings components

Pricing Features Online Saver 75% 25% Low Transactor 60% 40% High Transactor 60% 40% Cash Manager 60% 40% PROFILE SCENARIO RATE FEATURES ACCESSIBILITY Online Saver* 20% 80% 80% 20% Low Transactor 90% 10% 80% 20% High Transactor 90% 10% 80% 20% Cash Manager 40% 60% 80% 20% *Online Saver requires and interest rate of at least 1% at $150k

Fees - Transaction Scenario

The scenario analysis is conducted using CANSTAR’s unique transaction calculator which prices the transaction behaviour of 500 randomly generated customers by combining their unique behaviours with transaction fees and each accounts policy on rebates and free transactions. The product with the lowest overall cost for the group of 500 customers receives the highest SCENARIO score.

TABLE 5 – Transaction Fee Scenarios

Low High Business Cash Online Saver Transactor Transactor Manager Average minimum balance $50,000 $5,000 $10,000 $100,000 Average no. of transactions/ 15 50 200 10 month Internet transaction 100% 30% 25% 25% Branch cash withdrawal N/A 10% 5% 5% Branch cash deposit N/A 15% 10% 5% Cheque withdrawal N/A N/A 10% 10% Cheque deposit N/A N/A 15% 30% Direct Credit N/A 25% 15% 15% Direct Debit N/A 20% 10% 10% ATM N/A N/A 5% N/A EFTPOS N/A N/A 5% N/A

Rate

Interest paid on business savings account is an important component of the business saver profiles. The average interest rate paid across three nominated account balances (see TABLE 6) is used to establish the account that pays the highest overall interest. The product found to pay the highest average balance based on the weightings in TABLE 7 receives the highest RATE score.

TABLE 6 – Average Balances

BALANCES Online Saver Business Cash Manager Low Transactor High Transactor

BALANCE 1 $10,000 $25,000 $1,000 $5,000 BALANCE 2 $50,000 $50,000 $5,000 $10,000 BALANCE 3 $100,000 $150,000 $10,000 $20,000

Page 6 of 9 TABLE 7 –Balances Weightings

BALANCES Business Cash Manager Other Profiles

BALANCE 1 20% 33% BALANCE 2 35% 33% BALANCE 3 45% 34%

Features

More than 100 individual features of each account is scored for positive traits and awarded a FEATURES scores. TABLE 8 highlights the contribution of the various groups of information to award the business deposit account FEATURES score.

TABLE 8 BUSINESS DEPOSIT ACCOUNTS FEATURES DISTRIBUTIONS FEATURES COMPONENTS Online Saver Cash Manager Transactor GENERAL FEATURES Examples: -Reporting options: passbook, statement, internet, email. -Access channels: ATM, EFTPOS, Phone, Internet, cheque. 30% 50% 65% -Facilities: offset, overdraft, sweep, periodic payment. -International: ATM, EFTPOS.

SPECIFIC CONDITIONS Examples: -Interest details: calculation & payment freq., balance used- open/closed/min/max, entire/portion, bonus interest. 50% 35% 20% -Minimum: opening/subsequent deposit, ongoing bal, w/d. -Maximum withdrawals per d/w: ATM, EFTPOS, combined. INTERNET SECURITY -Secondary Authentication: security, higher transfer limit available with secondary authentication. 20% 15% 15%

Business credit card star ratings

To arrive at the total score CANSTAR applies a weight (w) against the P and F. This weight will vary for each customer behaviour profile and will reflect the relative importance of either costs or features in determining the best business deposit account. This method can be summarised as:

TOTAL SCORE ( T ) = PRICING ( P ) + FEATURES SCORE ( F )

Refer to Table 9

Pricing Historical rates over past 6 months Table 8 & current costs 20/80% Features Components Revolver Transactor Specific Business Card Conditions 20% 20% Merchant Acceptability 15% 5% Premium Card Facilities 15% 15% Features Online Transactions 15% 15% Based on 9 different feature General Card Terms 5% 10% categories Fees & Charges 10% 5% 20/80% Late Payment/Interest Charged 5% 5%

Repayment Capabilities 5% 5%

Rewards 5% 25%

Page 7 of 9 Unsecured business credit and charge cards are eligible to be included in the business credit card star ratings. All eligible cards are assessed against two distinct business consumer behavior profiles (REVOLVER & TRANSACTOR). Revolvers carry an outstanding balance on their card while transactors pay off their outstanding balance each month. As charge cards do not encourage revolving, they were only eligible to be assessed against the transactor profile.

The star ratings consider PRICING & FEATURES to be the two components in the card user’s value equation. TABLE 9 highlights the contribution of each of these components to the value proposition for the business revolver and the business transactor.

TABLE 9 - Business credit card star ratings components

BEHAVIOUR PROFILE PRICING COMPONENT FEATURES COMPONENT

Business Revolver 80% 20%

Business Transactor 20% 80%

Pricing component

The pricing score for the revolver profile is based on a 6-month average historical interest rate and the current cost of revolving $5,000. 90% of the revolve is based on the purchase rate, with the remaining 10% based on the cash advance rate. Both sub-components are weighted equally.

The pricing score for the Transactor profile is based on the annual cost of keeping the card active. Cards that do not charge an ongoing fee automatically receive the maximum pricing score while other cards are awarded a score based on their annualised fees.

Features component

More than 100 individual features of each card are scored for positive traits and awarded a FEATURES scores. Table 8 highlights the contribution of the various groups of information to award the business credit/charge card FEATURES score.

NOTE: Please refer to Table 8 of the business credit card methodology tree. Some of the features contributing to the business credit card features score include: Free employee fraud protection, ability to set individual limits per card, Provision of GST statements etc.

How are the stars awarded?

Each business banking product reviewed for the CANSTAR business banking star ratings is awarded points for its comparative Pricing and for the array of positive Features attached to the account. Points are aggregated to achieve a Pricing score (P) and a Features score (F).

The total score received for each profile ranks the products. The stars are then awarded based on the distribution of the scores with the objective to award the top 5-10% of products with the CANSTAR 5-star rating.

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The results are reflected in a consumer-friendly CANSTAR star rating concept, with five stars denoting outstanding value.

How many products and financial institutions are analysed?

In order to calculate the ratings, CANSTAR analyses 113 term loans, 42 overdrafts, 63 credit cards and 90 deposit accounts from leading financial institutions in Australia.

How often are CANSTAR business banking star ratings re-rated?

All ratings are fully recalulated every six months based on the latest features offered by each institution. CANSTAR also monitors rate changes on an ongoing basis.

Does CANSTAR rate other product areas?

CANSTAR researches, compares and rates the suite of banking and insurance products listed below. These star ratings use similar methodologies to guarantee quality, consistency and transparency. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.

• Account based pensions • Managed investments • Agribusiness • Margin lending • Business banking • Online banking • Business life insurance • Online share trading • Car insurance • Package banking • Credit cards • Personal loans

• Deposit accounts • Reward programs • Direct life insurance • Superannuation • First home buyer • Term deposits • Health insurance • Travel insurance • Home & Contents • Travel money card • Home loans • Youth banking

• Life insurance

DISCLAIMER:

To the extent that any CANSTAR data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR’s FSG for more information at www.canstar.com.au.

All information contained herein shall not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, or stored for subsequent use for any purpose, in whole or in part, in any form or manner or by means whatsoever, by any person without CANSTAR’s prior consent. All information obtained by CANSTAR from external sources is believed to be accurate and reliable. Under no circumstances shall CANSTAR have any liability to any person or entity due to error (negligence or otherwise) or other circumstances or contingency within or outside the control of CANSTAR or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication, or delivery of any such information. Copyright 2012 CANSTAR Pty Limited ABN 21 053 646.

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