Club Plus Superannuation has begun offering term deposits at high guaranteed rates to its pensioner members, who together have $66 million in super savings, at no extra cost.

The $1.6 billion industry fund uses Macquarie Bank to provide its 420 pensioners with term deposits at interest rates guaranteed to exceed the average set by the five largest domestic banks: Commonwealth Bank, National Australia Bank, Westpac, ANZ and St George Bank.

Pensioners choosing one or more term deposits, which mature at three-, six-, nine- or 12-month intervals, must invest at least $10,000 in the products. They can invest up to 80 per cent of their savings in deposits without incurring additional fees and have enough money left to fund pension payments.

Club Plus members, drawn from the clubs industry, expressed appetite for the stable income provided by term deposits in the fund’s annual member satisfaction survey in August 2011, says Andrew Inwood, founder and principal of CoreData, the financial services researcher that conducted the survey.

“Club Plus is at the bottom range of medium-sized super funds. That they did this so quickly speaks to their intent to help members,” says Inwood, whose company also provides marketing services to Club Plus.

The fund’s member administrator, Australian Administration Services, enables pensioners to transfer super savings into term deposits online.

Club Plus aims to offer term deposits to other members from 1 July.

Other superannuation funds that provide term deposits are AustralianSuper, through its Member Direct investment option, and Colonial First State, through its FirstRate Saver product.

Simon Mumme became a fnancial journalist through a stroke of luck. Upon graduating with a Master of Journalism from The University of Queensland in 2006, he set out to fnd a news organisation that would employ him as an overseas correspondent or business reporter. Or both, ideally. Conexus Financial hired the bright-eyed cadet, and in the ensuing years he wrote for all of its titles until being appointed editor of Investment Magazine in June 2010. Under his guidance, the magazine continues to dominate the Australian institutional investment media through its authoritative, insightful and engaging feature stories and analysis. Outside of work, Simon trains keenly in Muay Thai kickboxing, revels in the surf breaks fringing the Sydney coastline and reads as much high-quality journalism and non-fiction writing as he can. Committed to his role as a niche business reporter, Simon is aware that an overseas posting as a correspondent still eludes him. He hopes Conexus can help him with that career goal too.
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