Community Bank® Frequently Asked Questions
Does a Community Bank® branch offer full banking services?
Community Bank® branches offer all services that a major bank including;
- Personal savings and investments
- Business solutions
- Commercial finance, leasing, financial planning
- Superannuation
- Internet and phone banking
- Video conferencing
Does it offer Business Banking?
Yes, Community Bank® branches provide full Business Banking services including Commercial Lending, Leasing and additional services ranging from Financial Planning to Wills. We have established an account called the Primary Producer Account which is available to farm owners and operators. This offers an interest-bearing cheque account and overdraft facility at competitive rates. Another one of our accounts is the Farm Management Deposit account. This Account is a tax-saving investment account which is available to primary producers.
What form of investment is the Community Bank® branch?
A local entity forms a company limited by shares to represent the local community. This company raises investment funds locally and purchases from Bendigo and Adelaide Bank the right to run a banking branch.
Why should I bring my banking to the Community Bank® branch?
Because by supporting your Community Bank® branch, you are directly supporting your community.
Banks make profits from the differences in interest rates between deposits and loans, called a "margin". Whenever you save or borrow, the bank earns a margin, which of course usually goes straight to head office.
The difference with a Community Bank® branch is that your community directly shares this margin income.
Any profit the Community Bank® branch makes after deducting operating expenses can then be ploughed straight back into supporting local community needs.
Who controls the local side of the operation?
The local operating company. Bendigo and Adelaide Bank performs all the "back room" banking functions - but the local company will employ and pay the branch staff. In other words, these employees are not Bendigo and Adelaide Bank staff members but will receive extensive training and support from the bank.
How long will our branch take to generate profit?
This is up to your community. If there is significant support from the community, especially in the first six months, then the rewards will come sooner.
Your community will prepare a business plan based on locals promising to bank with the Community Bank® branch. The quicker they shift their banking to your branch, and the more people who provide long-term support to the branch, the quicker it can move into profit and make money available to be channelled back into the local community.
How safe is my money and my privacy?
As with all deposits, depositors are protected by Bendigo and Adelaide Bank, that's covered by the Government Guarantee. The bank makes all credit decisions and protects individual client privacy. Community Bank® branch staff will be bound by the bank's confidentiality requirements. |
