Our Term Deposit option provides a fixed rate of return for terms of 3, 6, 9 or 12 months, with a competitive interest rate issued by National Australia Bank Ltd. View the current term deposit interest rates.
Each term deposit you hold must be a minimum of $5,000 and to commence a term deposit you must have a balance of at least $15,000 invested in your account (excluding any amounts already in the Term Deposit option). In addition, you must retain the greater of $10,000 or 10% of your account balance invested in options other than Term Deposit. This is because deductions from your account such as administration fees, insurance premiums and pension payments (as applicable) will be taken from investment options other than the Term Deposit.
At the end of the term, all money within the term deposit, less any tax payable on the interest earned1, will be automatically transferred into VicSuper's Cash option. You may then transfer the proceeds to the investment option/s of your choice by changing your investment options or applying for another term deposit through VicSuper MembersOnline or by completing the Term deposit application form.
Once selected, your funds remain invested in the term deposit for the period you chose (3, 6, 9 or 12 months). Under special circumstances and at Trustee discretion, we may allow a term deposit to be terminated early. An interest adjustment, in the form of a reduction in accrued interest, may apply for an early termination.
If you hold a term deposit within your VicSuper FutureSaver account and you wish to start a VicSuper Retirement Income Solution, you must wait until the term has finished or terminate the term deposit early (subject to Trustee approval and early termination costs).
See below and the ‘How we invest your money’ Member Guide (for FutureSaver) or the Flexible Income PDS (for Flexible Income) for more information.
|FutureSaver and Flexible Income|
|Summary||A non-unitised option that provides a fixed
rate of return for a specified term by investing
in term deposits..
|Investment objective2||To outperform the returns of the Bloomberg
AusBond Bank Bill Index, over rolling 12-month
periods, before taking into account fees, costs
Strategic asset allocation
|Minimum suggested investment timeframe||Investors can choose a 3, 6, 9, or 12-month investment timeframe.|
|Minimum investment amount||$5,000|
|Maximum investment amount||$5 million|
|Minimum account balance||$15,000 (excluding any amounts already invested in term deposits)|
|Standard Risk Measure3||1 - Very Low
|Estimated number of negative annual returns over any 20-year period3||Less than 0.5
|Who might invest in this option?||This option may suit investors who wish to
lock in a fixed rate of return for the selected
term of the investment to better plan for short
to medium-term cash flow needs. You should
be aware that, depending on prevailing
interest rates, the return you receive may not
keep pace with inflation, which may mean
there is little or no short-term real growth.
1. Applicable to FutureSaver and Flexible Income with the Transition to Retirement feature only.
2. The investment objective does not constitute a forecast or guarantee of future performance or the future rates of return of the investment option.
3. For more information on the methodology used to determine risk measures and the estimated number of annual negative returns, refer to Standard Risk Measures in the How we invest your money Member Guide (for FutureSaver) or the Flexible Income PDS (for Flexible Income).
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