Kelly Emmerton writes an article for Mozo that talks about the growing popularity of the online lenders in the SMSF market and the top SMSF savings accounts. Mozo Expert’s Business Online Savings Account, Arab bank Australia’s Online Savings Account and RaboDirect’s DIY Super High Savings Account are the clear winners in this year’s Mozo Expert’s Choice SMSF Awards. While CUA grabbed the best ongoing bonus rate award, RaboDirect took the best value introductory rate award.
The eligibility criteria for the Expert’s Choice awards includes, but is not limited to, zero monthly service fee, unlimited e-transactions, zero notice periods for withdrawals and choice of linking to accounts of other banks.
Small online providers are also jumping on the term deposit bus like never before and Mozo Experts have done commendably well in the business Term Deposit category, says Emmerton. While the interest rates for Term deposits for BankWest and Bank Australia are 2.90% (6 months) and 2.85% (4 months), the interest rate for Mozo are 2.80% for 7 months and 2.50% for 6 months.
You can read the original article here.
Gen Y seeking its day in the sun
Even the Gen Y is warming up to the need for/potential of investments and this is clearly manifest in their growing numbers. While they have still not made a dash for term deposits, it is safe to assume that their numbers will grow substantially in coming years. The online providers will have to cater to this key component of the demographic if they want to meet with full-fledged success. It is quite a stat that only about 20% of CommBank investors were below the age of 35 in the year 1995 whereas the number is 28% presently.
Compliance just as crucial, if not more
The deposits and investment strategies, however, are not the only area where you should focus on. SMSF urgently requires you to sort out all your compliance worries. Where you have reduced penalties for employees for compliance breaches (as directed by the latest Superannuation laws), they are stiffer penalties in many areas. You would certainly not want to tread there. If you have any SMSF compliance question in mind, feel free to get in touch with me today.