Aviva has acted to give superannuation and pension customers access to the Federal Government's guarantee on a wide range of term deposits.
Aviva has acted to give superannuation and pension customers access to the Federal Government's guarantee on a wide range of term deposits.
To date, the government's deposit guarantee has left superannuation and pension investors with cash and term deposits out in the cold. The guarantee is limited to bank deposits of up to A$1 million at no cost, for customers who invest directly with a bank or through an investment wrap, such as Aviva's Personal Investment Plan. This creates problems for super funds as they typically invest much more than A$1 million on behalf of members.
Tim Cobb, general manager of marketing and public relations, said: "We have over A$380 million invested in term deposits for our super and pension customers and it seems unfair that they can't access the guarantee if they choose.
"We have raised the fact that superannuation and pension investors were left out with IFSA who have discussed it with Treasury. We think it's an oversight but rather than wait for a solution at an industry level we have found a way forward for our customers."
Aviva will give customers the choice of whether to take up the guarantee. The rate the government is charging starts at 0.7% per annum and varies depending upon the credit rating of the issuer.
"Investing in term deposits within super or pension is extremely tax efficient. This means that customers can still come out with a higher net return than they would from investing directly with a bank outside super. Customers wanting to put super investments in term deposits should see a financial adviser as very few super funds allow it," said Mr Cobb.
Aviva gives customers access to a wide range of term deposits for periods of 30 days to 12 months. The term deposit guarantee is available through Aviva's platform from St George, Adelaide Bank and Wide Bay Australia.
Mr Cobb also added: "We believe in offering customers a wide range of choice and we are not limited to offering products from just one bank."
Details of the range of term deposits and interest rates offered on Aviva's wrap and super fund are available on www.aviva.com.au.
-ends-
Tim Cobb is available for interview.
For more information:
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247
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