AustralianSuper has announced the launch of Member Direct — a new investment option that gives members access to term deposits.
The new option replaces the existing ASX200 Shares option and reflects the rapid growth and popularity of term deposits outside of superannuation, which the super fund expects will continue to rise, said AustralianSuper chief executive Ian Silk.
As part of Member Direct, AustralianSuper stated members will also have access to ASX300 companies and exchange traded funds, all with six and twelve month term options and a minimum deposit of $2,000 and a maximum of $5 million. The option includes an associated cash account and research and reporting capabilities.
National Australia Bank and ME Bank have been selected as term deposit providers on the condition that they continue to offer competitive rates — not just short-term, introductory specials, AustralianSuper stated.
Silk said that AustralianSuper was different from other platforms or retail super funds because they were not tied to a product provider and had significant bargaining power. He also said the fund may consider adding additional providers following a review of the initial take-up of Member Direct.
