TermPlus Savings Account 7%

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  flagger on 19/06/2024 - 07:33

  +7

  Looks like a investment company disguising it as a savings account to me. They talk about target rates, not savings rates.

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  Dumax on 19/06/2024 - 09:38

  +2

  Is this a Bank Term Deposit?
  No, an investment in a Term Account in TermPlus is not a bank deposit or a term deposit with a bank.

  So no protection under FCS (they're not an ADI).

  Can I add to or withdraw from my balance during a Term?
  As this is a ‘term based’ account, funds cannot be withdrawn until the Term is over.

  Completely wrong to characterise this as a savings account.

  The above quoted Target Rates are those current as at today and are merely objectives, which may change during the course of the Term.

  So you get none of the certainty of a term deposit but all of the inflexibility of a term deposit…

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  netjock on 19/06/2024 - 09:57

  +4

  I've seen these before.

  Fund managers make all the money when times are good. Like the stock market goes up 20% they take 13% and then when things go bad you lose your money and they tell you to look at the terms and conditions.

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  AndyRates on 19/06/2024 - 12:52

  https://termplus.com.au/

  So backed by a 20 year old fund manager but not backed by government? Still risky compared to bonds?

  I wonder if they are backed by Mercer

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  miwahni on 19/06/2024 - 22:30

  +1

  You really need to understand what you're looking at here, and consider how it fits with your investment appetite. Since the GFC major banks have pulled back from a lot of the more risky business / company finance that they used to fund. This gap has been plugged in part by private credit providers and other NBFIs. So there is a risk of default by the debtors, and no government backing to secure your investment - but usually the returns are higher than you'd get in a traditional account (or at least they SHOULD be, to cover the risk).
  Note that the rate they're offering for one year is the RBA cash rate + 3%. Do you believe that the RBA will drop the cash rate over the next twelve months? Then adjust your expectations accordingly.