SMSFs missing out on higher interest
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.
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
