How to invest in active funds
1 August, 2008Tougher going for boutiques
1 August, 2008New Product
ANZ Flexible Term Deposit Fund
What is it?
A term deposit without the term. It’s a high interest cash fund, but with no lock-in period or maturity.
So it’s a high interest bank account?
Effectively, yes. But you access it not through ANZ bank but through ING Australia’s One Answer platform.
How high?
7.3% if accessed through OneAnswer, or 7.6% through OneAnswer Select. There will be platform fees to pay too though.
Is that good?
On a world scale, it’s enormous. But in Australia – where, in contrast to most of the world, interest rates are rising rather than falling – it’s not the leader. Many online bank accounts offer similar or higher rates: for example AMP’s eASYSAVER account offers 8.25%, BankWest’s TeleNet Saver 8.5%, and ING Direct’s Savings Maximiser 8%, even on low balances. The appeal of this new product is that it fits within a platform, giving flexibility to shift that cash quickly and easily in and out of any of the 75 funds available on OneAnswer. So it’s high interest, less paperwork, and simple administration.
How much do I need to put in?
For the Personal Super arm of the platform, it’s $2000; for the Investment Portfolio arm, $5000. Once you’re in those platforms, you can access the deposit fund with a minimum $250 investment.
