The UBank Term Deposit Self-Managed Super Fund (SMSF) Account provides a short term plan for growing your retirement money. Available in a number of different terms with a fixed interest rate, you’ll have the advantage in knowing exactly how much of a return you will see. This is a secure way to boost your future savings, and make plans for how to spend it.
What are the features of the UBank Term Deposit Self-Managed Super Fund?
Term deposits provide a safe way to invest your SMSF and still see account growth. Before investing your retirement money, ensure that you are giving it the best possible benefits by comparing the features of a number of banks similar accounts.
- Monthly account keeping fees. With this term deposit you are not charged any monthly fees.
- Transaction fees. There is no charge for making your transfers into and out of the account so long as you are making these transactions when the account matures.
- Term options. You are allowed to choose terms of one, three, six, or nine months, or you can opt for a one year term.
- Minimum investment. You must be able to make a minimum investment of $1,000.
- Interest rates. The interest rates with this account are fixed at a competitive rate. Growing in value when you choose longer terms, with the exception of the six month term which pays the highest return on the investment.
- Bonus rate. You can earn bonus interest on your next term deposit when you rollover all or more of your initial investment after it matures. When you do rollover your term deposit the base interest rate may change to the prevailing rate at that time.
- Interest payments. Interest is calculated daily and will be paid into the account at maturity.
- Chosen bank account. You must provide UBank with the information of another Australian bank account that is in the same name as the SMSF or the trustee of the fund in which the UBank term deposit is being opened. This account or another UBank account held in the same name will be used to credit interest payments and principal and to transfer your deposits from.
- Prepayment. If you want to withdraw any funds from the term deposit before the maturity date, you must provide UBank with at least 31 days notice. UBank will make adjustments to the interest earned at their discretion to reflect the amount of time you had your money invested.
- Maturity. You have up until two days before the maturity date to provide UBank with instructions on what your plans for the term deposit balance are. If no instructions are given, the money will be automatically rolled into a new term deposit for the same length of time but at the prevailing interest rate plus your loyalty bonus. You still have seven days from the date of maturity to make any adjustments before being locked into the new term.
- High competitive interest rate
- No transaction fees
- Up to a maximum deposit of $2,000,000
- $1,000 minimum deposit
How do I apply for the UBank Term Deposit Self-Managed Super Fund?
If the UBank Term Deposit is the right product to build your SMSF you can start an online application. Before being allowed to begin, you will have to confirm you are eligible by meeting these requirements:
- Minimum age. All applicants and joint applicants must be over the age of 18 and part of a complying SMSF where the trustees are no more than two individuals or a corporate trustee with no more than two directors.
- Residency requirements. You must be an Australian resident for tax purposes currently living at an Australian residential address.
- Depository requirements. You will have a limited time to make a minimum deposit of $1,000 before the possibility of a change in the declared interest rates.
UBank also recommends that you have the following documentation ready for quick reference as you are filling in the application form:
- Tax file number. With an interest earning account you will want to provide your tax file number (TFN) or exemption code to ensure that any withholding tax on your interest earnings is calculated at the correct rate.
- Identification. Information from your passport, driver’s licence or Medicare card will be used to verify your identity.
- Contact information. You will need to provide a valid email address and mobile phone number in order for UBank to contact you.
- SMSF details. You will need the Australian Business Number (ABN) and fund name if it is a trust. The trustees and or members and the ABN or Australian Company Number (ACN) if you are a corporate trustee.
- Verify identity. One of the following is needed to verify the information on the application; certified pages of the trust deed that display the name of the trust, who the trustees are and the members or a certified copy of an Australian Taxation Office notice that verifies the name of the fund and its trustees.
- Bank account details. You will need to provide the account number and name for a separate banking account held in Australia. This account must be in the same name as the one you are providing for the term deposit.
The term deposit is activated once your initial deposit has been cleared by UBank, and you have up until two days before it matures to provide instruction on whether you would like it reinvested.
How does UBank verify my SMSF?
You will need to provide evidence of the details of your self-managed super fund to qualify for this type of high interest account. UBank may require a certified copy of your SMSF trust deed, showing the name of the trust and naming the trustees and members of the fund.
When you nominate your linked Australian bank account, you will also need to provide a statement from that bank, showing that the account is either in the name of your SMSF or in the name of the trustees of the fund.
So if you want to boost your retirement savings, but not tie your money up for years at a time, the UBank Self-Managed Super Fund term deposit account could offer you the ideal way to get your super money working for you.
Do you have some sort of allocated super account?
The UBank SMSF account seems to be just a SMSF cash account and not a mixed class super account. You may want to look at ANZ which has an SMSF allocation product.