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How Term Deposits Work


 
 
Term Deposits

An SMSF is permitted to invest in Term Deposits. Clients of ESUPERFUND are permitted to use any Term Deposit Provider for their SMSF. To simplify the Term Deposit Process ESUPERFUND has established direct arrangements with the following Institutions allowing clients to easily apply for Term Deposits through our website.

  • ING Direct
  • AMP

By using the above Term Deposit Providers ESUPERFUND is able to electronically access the transactions made by your SMSF in order to attend to the SMSF Annual Compliance Requirements. No bank records are required from you each year as we already have the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your Term Deposit Account and cannot actually login to access the required data.

 
 
Term Deposit Providers Not Compulsory 

It is not compulsory to use the above Term Deposit Providers (ING and AMP Bank) and you are permitted to invest in any Term Deposits for your SMSF directly as desired. However if you establish Term Deposits for your SMSF directly with other Providers, data will not be accessible by ESUPERFUND and you will need to source and provide this data to ESUPERFUND annually. In addition ESUPERFUND provides a Client Login Portal to clients with daily data of all your SMSF Investments. Where you elect to invest in Term Deposits other than with ING and AMP Bank, we will be unable to receive daily data on these accounts, and in turn will not be able to report details of these accounts daily.

 
 
Application Process

Once your SMSF has been established by ESUPERFUND and monies have been transferred to the SMSF, you can apply to establish a Term Deposit for your SMSF. To apply for a Term Deposit for your SMSF, please login to the ESUPERFUND Client Portal here. The Form will request the Institution you wish to make the Term Deposit with, the amount of the Term Deposit and Term.

 
 
Term Deposit Documentation

On receiving your online Term Deposit Application, ESUPERFUND will forward you the applicable prepopulated Term Deposit Application for signing. The documentation will need to be reviewed, signed and returned to our office. 

 
 
Term Deposit Interest Rates

The Term Deposit Interest Rates can be found on our website here. The Interest Rates are subject to change and will be notified by updating our website. However please note the Interest Rate that applies to a Term Deposit Application made by your SMSF will be the Interest Rate on the date that your Term Deposit Account is established by the financial institution.

 
 
Processing Term Deposit Applications

Once your Term Deposit Application has been processed you will receive direct notification by the Institution selected confirming the Term Deposit has been established.

 
 
Accessing Information by ESUPERFUND

Data for all Term Deposits established directly through ESUPERFUND is electronically accessible by ESUPERFUND. Importantly ESUPERFUND has absolutely no ability to enter or transact on your Term Deposit Investment. Only you as the SMSF Trustee can transact on the Term Deposit Investment.

 
 
Product Disclosure Statement

The Product Disclosure Statement for the selected Institution offered under the ESUPERFUND Term Deposit Service should be carefully reviewed prior to applying for a Term Deposit. The relevant Product Disclosure Statements can be found here.

 
 
Government Guaranteed

All Term Deposits offered through the ESUPERFUND Term Deposit Service qualify for the Government Guarantee.  That is Term Deposits with balances of up to and including A$250,000 in total are guaranteed by the Federal Government without charge. The guarantee applies to the total balance held in one or more deposit accounts by each legal entity, up to a maximum amount of A$250,000. For further information please refer to the Financial Claims Scheme https://www.fcs.gov.au/.

 
 
Compliance

ESUPERFUND has introduced our Term Deposit Service ensuring that ALL Term Deposit Investments are correctly established. This has ensured that Term Deposit Investments are compliant with Super Regulations.

 
 
Straightforward Application Process

If you choose to open an ING Direct Savings Account, then ESUPERFUND will attend the Term Deposit Application and Lodgement process. There is no need to fill in Application Forms, visit Bank Branches or provide documentation to evidence the existence of your SMSF. This is all handled by ESUPERFUND. The requirement from you is to provide certified copies of your identification.

 
 
Funding your Term Deposit Investment

An authority will be included in the documentation sent to you on applying for a Term Deposit to debit your SMSF Bank Account (or payable by cheque in some instances) to fund the Term Deposit Investment. There is no requirement to transfer monies yourself to fund the selected Term Deposit. This will occur automatically and will be actioned directly by the Bank.

 
 
No Advice

The ESUPERFUND Term Deposit Service is provided on No Advice Basis. Clients will need to determine which Term Deposit Product is appropriate for their financial situation based on their particular needs.

No financial product advice or recommendation

No Advice Express or Implied: It is important to understand that ESUPERFUND has not taken into account any particular investor's objectives, financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products either expressly or implied. ESUPERFUND expressly states that it does not recommend, represent as suitable, or endorse any financial product or service available through ESUPERFUND. This applies in relation to the ING and AMP Term Deposits. ESUPERFUND does not advise or recommend that these products are suitable to a particular investor’s financial requirements or needs in relation to their SMSF. Any information provided in relation to the ING and AMP Term Deposits is factual information only about the operation of the account and how data is made available to ESUPERFUND. Accordingly you should read the disclosures relating to the ING and AMP Term Deposits before making any decision about whether the ING and AMP Term Deposits are suitable for your SMSF needs. We also recommend that you should seek professional advice from a financial adviser before making any decision to use the ING and AMP Term Deposits for your SMSF.


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