SMSF term deposit rates

ESUPERFUND

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ESUPERFUND

Thinking about setting up a self managed super fund? ESUPERFUND can help you create an SMSF and take control of your retirement. There is no minimum amount required and ESUPERFUND handles the annual compliance obligations for you.

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• Special offer: Save $1,399 with free SMSF setup plus no annual fee for the first year (T&Cs apply).

What is an SMSF term deposit?

An SMSF term deposit is a savings account with a very special job: it's designed to help build your savings specifically for retirement. They work the same way as normal term deposit accounts, however they're designed specifically for self-managed super funds, not everyday individual customers.

An SMSF term deposit allows you to invest a sum of money for a fixed period of time. During that time, the money earns a fixed interest rate.

There's no such thing as a free lunch, however. In exchange for the fixed rate of return, you agree to lock your money away with the lender that entire time. You'll be unable to get your hands on that cash, until the term comes to an end. It's not impossible to get your money back, but term deposits are set up so that you'll pay hefty fees to do so.

Interest on an SMSF term deposit can be paid monthly, quarterly or at the end of the term.

Compare SMSF term deposit rates

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Name	3 Mths p.a.	4 Mths p.a.	5 Mths p.a.	6 Mths p.a.	7 Mths p.a.	11 Mths p.a.	12 Mths p.a.	24 Mths p.a.
Judo Bank SMSF Term Deposit	3 Mths p.a. 5.00%	4 Mths p.a. -	5 Mths p.a. -	6 Mths p.a. 5.15%	7 Mths p.a. -	11 Mths p.a. -	12 Mths p.a. 5.00%	24 Mths p.a. 4.75%	Go to siteMore Info Compare
Beyond Bank SMSF Term Deposit $100,000 min. deposit$5,000,000 max. deposit	3 Mths p.a. -	4 Mths p.a. -	5 Mths p.a. -	6 Mths p.a. -	7 Mths p.a. -	11 Mths p.a. 4.95%	12 Mths p.a. -	24 Mths p.a. -	Compare
ING SMSF Term Deposit $10,000 min. deposit	3 Mths p.a. 0.50%	4 Mths p.a. 0.50%	5 Mths p.a. -	6 Mths p.a. 1.50%	7 Mths p.a. 0.80%	11 Mths p.a. -	12 Mths p.a. 2.00%	24 Mths p.a. 2.40%	More Info Compare
Australian Unity SMSF Term Deposit $5,000 min. deposit	3 Mths p.a. 4.60%	4 Mths p.a. 1.10%	5 Mths p.a. 1.10%	6 Mths p.a. 4.65%	7 Mths p.a. 1.45%	11 Mths p.a. 1.70%	12 Mths p.a. 4.50%	24 Mths p.a. 3.90%	Compare
Rabobank Term Deposit (SMSF) $1,000 min. deposit$2,000,000 max. deposit	3 Mths p.a. 4.85%	4 Mths p.a. -	5 Mths p.a. -	6 Mths p.a. 4.90%	7 Mths p.a. -	11 Mths p.a. -	12 Mths p.a. 4.55%	24 Mths p.a. 4.00%	Go to siteMore Info Compare
Macquarie Bank Term Deposit $5,000 min. deposit$999,999 max. deposit	3 Mths p.a. 4.95%	4 Mths p.a. 4.90%	5 Mths p.a. -	6 Mths p.a. 4.90%	7 Mths p.a. -	11 Mths p.a. -	12 Mths p.a. 4.85%	24 Mths p.a. 3.90%	More Info Compare
NAB Term Deposit $5,000 min. deposit	3 Mths p.a. 3.15%	4 Mths p.a. 3.25%	5 Mths p.a. 3.35%	6 Mths p.a. 3.50%	7 Mths p.a. 3.50%	11 Mths p.a. 3.80%	12 Mths p.a. 4.40%	24 Mths p.a. 3.80%	More Info Compare
Commonwealth Bank Term Deposit $5,000 min. deposit$49,999 max. deposit	3 Mths p.a. 3.10%	4 Mths p.a. 3.15%	5 Mths p.a. 3.25%	6 Mths p.a. 3.35%	7 Mths p.a. 3.45%	11 Mths p.a. 3.85%	12 Mths p.a. 4.35%	24 Mths p.a. 3.70%	More Info Compare
Community First Bank Term Deposit $5,000 min. deposit$99,999 max. deposit	3 Mths p.a. 4.45%	4 Mths p.a. 4.45%	5 Mths p.a. 4.45%	6 Mths p.a. 4.60%	7 Mths p.a. 4.60%	11 Mths p.a. 4.60%	12 Mths p.a. 4.60%	24 Mths p.a. 4.40%	More Info Compare
Bank of Queensland Term Deposit $5,000 min. deposit$249,999 max. deposit	3 Mths p.a. 2.25%	4 Mths p.a. 4.60%	5 Mths p.a. 1.25%	6 Mths p.a. 4.70%	7 Mths p.a. 1.50%	11 Mths p.a. 1.75%	12 Mths p.a. 4.60%	24 Mths p.a. 3.30%	More Info Compare

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SMSF term deposit rates explained

SMSF term deposits, like all term deposits, offer a fixed interest rate. This means the the interest rate will be locked in for the life of the term. This is different to savings accounts, which offer a variable interest rate and can change at any time with little notice.

A fixed interest rate can be both a good and bad thing. If interest rates are falling while you've already locked in a fixed rate it's good, as your rate won't fall. However if interest rates are rising, you'll be stuck with your lower fixed rate until the term deposit matures.

eToro SMSF

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eToro SMSF

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How to apply for an SMSF term deposit

If you wish to apply for an SMSF term deposit, you'll need to be a member of a complying SMSF. This means you'll need to be part of an SMSF with individuals as the fund trustees, or where a company is the trustee and each fund member is a director of that company.

Some banks will also place limits on the number of trustees a fund can have. For example, a bank may stipulate that to be eligible to open a Ubank SMSF term deposit you will need to be a member of an SMSF with a maximum of 2 individual trustees or a corporate trustee with no more than 2 directors.

Steps to apply for an SMSF term deposit

The exact application process for an SMSF term deposit varies depending on the financial institution. However, you will generally need to complete the following steps:

1. Download an application form. Forms are available from the financial institution's website.
2. Check that your fund is eligible. Read the fine print on the application form to ensure that your SMSF is eligible to open an account.
3. Select the type of SMSF. You will need to specify whether your SMSF has individual trustees or a corporate trustee.
4. Provide SMSF details. The next step is to enter your fund name and ABN if it has individual trustees, or the ABN and/or ACN of the corporate trustee. The names of individual trustees will also be required.
5. Provide opening deposit details. Provide information about the amount you will deposit in the account and where the funds will come from; for example, a linked account or a bank cheque.
6. Provide details of authorised account users. You will need to supply the names, positions, addresses and contact details of each authorised account user. All individual trustees must be authorised to use the account, while in the case of a company trustee, a minimum of two directors OR a director and a company secretary must be authorised users.
7. Sign the application. If your fund has individual trustees, each trustee will need to sign the application. If there is a corporate trustee, at least two directors will typically need to sign.
8. Submit your application. Submit your application form online along with any required supporting documentation.

Can I put my super into a term deposit?

Yes, if you have an SMSF, as this structure has the freedom to allocate their superannuation into term deposits. You can't direct your ordinary super fund balance (such as the funds you hold with Australian Super) into a standalone term deposit.

However, you can have some input into where you would like those super funds deposited, such as choosing a balanced or growth investment. Some funds will even let you choose the weighting of different asset types or direct investments – for instance, you could choose 70% balanced (lower risk) and 30% growth (higher risk).

Documents you'll need when opening an SMSF term deposit

The documents you need to supply when opening an SMSF term deposit will vary depending on whether your SMSF has an individual or corporate trustee structure. For SMSFs with individual trustees you will need to provide a certified copy of the relevant sections of the SMSF trust deed that clearly state:

• The name of your super fund
• The individuals listed in the application as the fund members and trustees

If the trustee of your SMSF is a company, your bank will need certified copies of the sections of the SMSF trust deed that identify the corporate entity as the trustee and the individuals listed as members.

Finally, remember that you will need to supply the details of each person authorised to use the account, including:

• Their full name
• Their address and contact details
• Their date of birth
• A certified copy of photo ID

Do I need to have an SMSF to open a term deposit?

No, you don't need to be a member of a self-managed super fund to open a term deposit. If you want to open a term deposit account you can do so by opening a standard term deposit account instead of a dedicated SMSF term deposit.

Term deposits are a popular investment choice for individuals as well as SMSFs because they offer a fixed, reliable return on your money.

Benefits of an SMSF term deposit

Some of the key benefits include:

• Provides a fixed interest rate and fixed rate of return on a portion of your SMSF funds
• Term deposits are a safe way to invest your SMSF cash as your deposit up to $250,000 is covered by the government's bank guarantee scheme
• Because the rate is fixed, term deposits are protected by any major market falls or cash rate movements
• You can choose how often you want to receive interest payments
• SMSF term deposits are quick and easy to open

Why should I invest in an SMSF term deposit?

Your SMSF isn't required to invest any money at all in an SMSF term deposit, it's not mandatory to do so. However, you might decide that it's a good fit within your wider SMSF investment strategy to do so. There are many pros and cons of an SMSF, but one of the biggest advantages is the ability to control how your money is invested.

Depending on your fund's investment strategy, you'll likely have a portion of your investment allocated towards defensive or lower risk assets. This is a well-known way to reduce your investment risk and protect a portion of your balance in the event that share markets and property markets crash or experience volatility. However, the amount that you decide to invest in defensive assets will entirely depend on your fund's investment strategy.

As of December 2021, cash and term deposits account for 16.86% of all asset allocations for SMSFs according to Australian Government data. This is even slightly higher than property, which accounts for 16.02% of SMSF investments.

An SMSF term deposit is a good defensive option in your portfolio as it allows you to enjoy a safe and steady return on your investment, while the fixed interest rate protects your investment from rate movements.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 626 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living