How Term Deposits Work

Clients of ESUPERFUND are permitted to invest in Term Deposits. To simplify the Term Deposit Application Process ESUPERFUND has established direct arrangements with a number of Institutions allowing clients to easily apply for a Term Deposit Investment online.

Term Deposit Institutions

ESUPERFUND has arrangements in place with the following Institutions to provide Term Deposit Investments for your SMSF:

  • ING Direct
  • AMP
  • Macquarie Bank

By using our preferred Term Deposit Providers ESUPERFUND is able to electronically access the transactions made by your SMSF in order to attend to the SMSF Annual Compliance Requirements. No bank records are required from you each year as we already have the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your Term Deposit Account and cannot actually login to access the required data.

Application Process

Once your SMSF has been established by ESUPERFUND and monies have been transferred to the SMSF, you can apply to establish a Term Deposit for your SMSF. To apply for a Term Deposit for your SMSF, please login to the ESUPERFUND Client Portal here. The Form will request the Institution you wish to make the Term Deposit with, the amount of the Term Deposit and Term.

Term Deposit Documentation

On receiving your online Term Deposit Application, ESUPERFUND will forward you the applicable prepopulated Term Deposit Application for signing.  The documentation will need to be reviewed, signed and returned to our office. 

Term Deposit Interest Rates

The Term Deposit Interest Rates can be found on our website here.  The Interest Rates are subject to change and will be notified by updating our website.  The Interest Rate that applies to a Term Deposit Application made by your SMSF will be the Interest Rate on the date that all necessary Term Deposit documentation is returned to our office and processed by the relevant Institution.

Processing Term Deposit Applications

Once your Term Deposit Application has been processed you will receive direct notification by the Institution selected confirming the Term Deposit has been established.

Accessing Information by ESUPERFUND

Data for all Term Deposits established directly through ESUPERFUND is electronically accessible by ESUPERFUND alleviating you of the responsibility of maintaining these records at financial year end.   Importantly ESUPERFUND has absolutely no ability to enter or transact on your Term Deposit Investment.  Only you as the SMSF Trustee can transact on the Term Deposit Investment.  This gives you peace of mind that your super monies are totally secure.

Product Disclosure Statement

The Product Disclosure Statement for the selected Institution offered under the ESUPERFUND Term Deposit Service should be carefully reviewed prior to applying for a Term Deposit.  The relevant Product Disclosure Statements can be found here.

Government Guaranteed

All Term Deposits offered through the ESUPERFUND Term Deposit Service qualify for the Government Guarantee.  That is Term Deposits with balances of up to and including A$250,000 in total are guaranteed by the Federal Government without charge. The guarantee applies to the total balance held in one or more deposit accounts by each legal entity, up to a maximum amount of A$250,000. For further information please refer to the Financial Claims Scheme https://www.fcs.gov.au/.

Minimum Term Deposit Amount

The Minimum Term Deposit Amount using the ESUPERFUND Term Deposit Service is $25,000.  If you require a Term Deposit for an amount under $25,000 please contact our office directly.

Avoid Audit Issues

Based on the results of our annual audit compliance process, ESUPERFUND has identified a number of instances where Term Deposits have been incorrectly established in the incorrect account name resulting in ATO compliance issues. As a result ESUPERFUND has introduced our Term Deposit Service ensuring that ALL Term Deposit Investments are correctly established.  This has ensured ATO compliance issues and associated penalties are eliminated and that Term Deposit Investments are compliant with Super Regulations.

Avoid the Complicated Term Deposit Application Process

Importantly ESUPERFUND will attend the Term Deposit Application and Lodgment process with minimum effort by you.  There is no need to fill in complicated Application Forms, visit Bank Branches or provide documentation to evidence the existence of your SMSF.  This is all handled by ESUPERFUND.  The only requirement from you is to provide certified copies of your identification.  It could not be easier.

Funding your Term Deposit Investment

An authority will be included in the documentation sent to you on applying for a Term Deposit to debit your SMSF Bank Account (or payable by cheque in some instances) to fund the Term Deposit Investment.  There is no requirement to transfer monies yourself to fund the selected Term Deposit.  This will occur automatically and will be actioned directly by the Bank.

No Advice

The ESUPERFUND Term Deposit Service is provided on No Advice Basis.  Clients will need to determine which Term Deposit Product is appropriate for their financial situation based on their particular needs.

Can your SMSF invest in other Bank Term Deposits?

Yes. It is not compulsory to use our Preferred Term Deposit Providers and you are permitted to invest in Term Deposits for your SMSF directly with any other Bank desired. However if you establish Term Deposits for your SMSF with Non Preferred Providers, data will not be accessible by ESUPERFUND and you will need to source and provide this data to ESUPERFUND annually. In addition ESUPERFUND provides a Client Login Portal to clients with real time data of all your SMSF Investments. Where you elect to use Non Preferred Banks to invest in Term Deposits, that we do not receive daily data on, we will not be able to report details of these accounts in real time.

Set up your SMSF with ESUPERFUND Today!