SMSFs missing out on higher interest

14 March 2017
| By Jassmyn |
image
image
expand image

Self-managed superannuation fund (SMSF) members with cash in savings accounts are missing out on as much as 1.4 per cent in the unconditional savings interest rates offered by banks, according to Mozo.com.au.

The comparison site said on a $200,000 cash balance it was a difference of $2834 in interest a year, and would make a big difference to an SMSF member’s retirement.

The difference between the highest and the lowest interest rates for SMSF term deposits was up to 1.15 per cent on a five-year term. Mozo found on a $200,000 investment that was a difference of $11,500 in interest over five years.

Mozo’s data insights director, Andrew Duncanson, said: “Whether you’ve got $5,000 or $250,000 in cash to invest, don’t think that there is some kind of trade-off between a lower interest rate and big bank safety”.

“We urge you to shop around and get the best rate you can,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 1 hour ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 2 hours ago