Cash & Bonds Term deposit for SMSF funds - any recommendations?

The SMSF transaction account pays no interest, so I'm looking at parking some 'excess funds' in a term deposit for a while (don't worry - it's in line with the investment strategy of the fund to allow for this).

Does anyone know of any good term deposits (available to SMSFs) for anywhere between a 1 and 12 month term?

 

The last ones I saw on Wednesday were less than 2%

 

They're woeful, aren't they? But it's better than the 0.1% on the transaction account.

There's a St George one offering 2.6% for 12 months - I'm just trying to see if there's anything better available (although I highly doubt it).

 

Go fot it @KayTea - another 0.1% on $100k is $100, barely worth it imho

 

I am not sure how smsf term deposit works but nabtrade has high interest account option if you have trading with them and interest is 2.35% or 2.15% ( can't remember ).

Ps: Not sure if it can apply to ur smsf funds.

 

I'm thinking it is likely to be better to start paying a bit extra off the SMSF IP mortgage…….

 

No offset account?

 

I need to call the bank tomorrow - they've just sent a letter talking about being charged a 'full offset service fee', but no evidence of any offset.

 

What bank is it? Not many of the SMSF loans have offsets

 

Thanks @Terry_w - that's what I thought. That's why I'm looking at parking the cash elsewhere.

 

Thanks @Newfast for the heads up.
I am a nabtrade customer and didn't know about this one. Its an internet-only type account currently 2.15%. Can be set up with just a couple of clicks, and yes it is offered to smsf customers as well as individuals.

 

I use

Yellow Brick Road - Active Cash | Smarter Money Investments | Yellow Brick Road

Happy enough getting 3-4%, better than term deposit rates but with small amount of capital variation. Not at call, but only a few days to get cash back.

 

I have my SMSF surplus cash in a Rabodirect high interest acct... that YBR account looks interestingtho

 

I had an SMSF term deposit with UBank (underwritten by NAB) about 18mths ago. At the time they were offering a good rate compared to most others. Not sure what their current rates are, but worth checking out.

 

I called St George this morning - turns out I have an offset account, and didn't even know it! Their communication, and transaction listing, internet banking platform etc is not well set out or very informative, so it was very easy to miss this (I don't do my person banking with them - only SMSF stuff).

So,with an IP mortgage interest rate around 3% higher than what a term deposit can offer, I think I'll just leave the money sitting in the offset.

 

Bad news - you could have been saving heaps in interest.
But better late than never.

 

Thankfully, loan was only established in May, so not too much lost.

But I told the customer service person I spoke to that they really need to do a better job of communicating important information like this more clearly - nowhere in my online profile, or account setup, is there any indication that there is an offset relationship between two accounts. And when the loan account was set up, there were hundreds of pages of paperwork to sort through and sign (SMSF loan applications suck).

Hope someone else can learn from my (lack of) observation.

 

You should have blamed them - saying you had told them to link the account at settlement. They would have reimbursed the fund the lost interest.

 

It has been linked all along - I just didn't know about it. So, the account it is linked to (transaction account) has been sitting with very little money in it for months (poor interest rate), while most of the money was sitting in a Super Saver account (better interest rate than the transaction account, but still a joke).

I've now moved pretty much all of it into the transaction account - the offset benefit will be much higher than the interest earned elsewhere, that's for sure.