Super-charge your term deposits

If you’re thinking about term deposits, it could pay you to think about investing in one inside your super fund.

Term deposits are popular because they generally offer competitive fixed interest rates. In effect they are a reward for giving up access to your money for a set period of time.

But did you know some super funds also offer term deposit options that work in the just same way as bank term deposits? And that investing this way may help you save tax and grow your balance faster?


Why term deposits inside super?

When you hold term deposits inside super, the interest you earn is taxed at a maximum of 15%. If held outside super, interest would be taxed at your marginal tax rate – which could be up to 46.5% (including the Medicare levy).

The potential tax savings get even better after you’ve turned your super into a pension account. From that point on, any interest you earn on your cash is tax free.


When will you need the money?

A major consideration when choosing to invest inside or outside super is when you’re going to need access to your money.

Outside super, you can cash out a term deposit when it matures and have the money in your hands straightaway. That’s not the case with term deposits inside super, where – as with all your super investments – you usually have to be retired before you can get access to your money.


Why Suncorp WealthSmart® for term deposits?

Term deposits within super are now available to Suncorp WealthSmart customers.

Suncorp WealthSmart Term Deposits offer protection from market volatility and help give you peace of mind and security in retirement.


The benefits include:

  • Choice of terms (6 months or 1, 3, or 5 years)*
  • Fixed interest rates
  • No administration or investment fees
  • Interest is paid annually and at maturity
  • Invest up to 70% of your account balance


Suncorp WealthSmart’s investment menu also includes a wide range of conservative and cash-based investment options suitable for investors who want to preserve the value of their capital.

To find out more, just give us a call – or talk to your financial adviser.


*Term deposits are not automatically invested at the end of the term.

Important information

This information is current as at 1 March 2013 and may be subject to change. It has been prepared without taking into account a person’s objectives, financial situation or needs. For that reason, before acting on this information, a person should consider its appropriateness having regard to their own objectives, financial situation and needs. Where the information relates to the acquisition, or possible acquisition, of a particular product, a person should read and consider the relevant Product Disclosure Statement (PDS) in deciding whether to acquire, or continue to hold, the products.

The products referred to are issued by Suncorp Portfolio Services Limited ABN 61 063 427 958 AFSL 237905 RSE licence number L0002059. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of products or services provided by other entities of the Suncorp Group.

Tags: Investing Super