High Interest Savings Account
What is a High Interest Savings Account?
A RaboDirect High Interest Savings Account is the perfect way to get your dreams back on track. You'll get a great variable rate, plus there are no fees, no minimum balance requirements and no sneaky terms and conditions. You can transfer money any time between your Linked account with your other bank and your High Interest Savings Account (HISA). From your HISA you can instantly transfer funds into any of your other RaboDirect accounts.
What is a Purpose Saver Account?
A Purpose Saver Account is a separate variable rate savings account you can create from your High Interest Savings Account for any specific savings goal you would like to focus on. There is no minimum balance or monthly increase required. This account has one variable interest rate, regardless of the account balance or frequency of contribution.
How do the tiered interest rates on my HISA work?
There are three tiers and the interest rate offered depends on your account balance. These tiers apply to all personal, joint, DIY Super, Trust, accounts on behalf of another person and Online SMSF accounts;
Tier 1: for account balances up to $250,000.
Tier 2: on the portion of your balance between $250,001 and $1million.
Tier 3: on the portion of your account balance which is above $1million.
Click here to check Interest rate link.
Click here for details about business accounts.
How are the rates applied to HISA balances over $250,000?
The interest paid to your account balance is broken down into the three tiers depending on your account balance.
Tier 1: for account balances up to $250,000.
Tier 2: on the portion of your balance between $250,001 and $1million.
Tier 3: on the portion of your account balance which is above $1million.
For example, if you have an account balance of $1,300,000 the first $250,000 will attract the Tier 1 interest rate, your balance between 250,001 and $1million will receive the interest applicable to Tier 2. Your remaining balance above $1million will receive the Tier 3 rate.
When is the interest rate calculated and paid into my account?
Interest is calculated daily throughout the month and is paid into your High Interest Savings Account at the end of each month. You can see the amount of interest you have earned for the previous month on the next months account statement or transaction history.
Can the interest rate change?
Yes, interest rates offered on our High Interest Savings Account, Purpose Saver and PremiumSaver are variable and may change. Our Term Deposits have fixed rates.
Purpose Saver Account
What is a Purpose Saver Account?
A Purpose Saver Account is a separate variable rate savings account you can create from your High Interest Savings Account for any specific savings goal you would like to focus on. There is no minimum balance or monthly increase required. This account has one variable interest rate, regardless of the account balance or frequency of contribution. You can have one Purpose Saver account.
PremiumSaver Account
What is a PremiumSaver Account?
If you're a regular saver, our PremiumSaver Account is perfect for you. Just increase your net balance by at least $200 (or $2,000 if you have a business account) by the end of every month and you'll earn the higher PremiumSaver rate.
How do I open a PremiumSaver Account?
If you're already a RaboDirect customer log into your account and from the toolbar choose PremiumSaver. From the home page, click on Open your PremiumSaver now. If you are a new customers just click the 'Apply now' button on the PremiumSaver page of our website.
Is there a minimum or maximum balance on PremiumSaver Accounts?
There is no minimum balance for your PremiumSaver Account, however you need to increase your net balance by $200 ($2000 for business accounts) each month in order to earn the higher PremiumSaver rate. Different rates apply to business accounts and to the portion of balances over $1million. For information on business accounts, click here.
What if I don't contribute to my PremiumSaver Account?
If you make no contributions to your PremiumSaver Account during the month, you will receive the lower PremiumSaver variable interest rate. For current interest rates, click here.
Will I still receive the higher interest rate if I make a withdrawal out of my PremiumSaver Account?
Yes, you can make unlimited transactions during the month in and out of your PremiumSaver Account. As long as you increase your net balance by $200 ($2,000 for business accounts) at the end of the month you will receive the higher variable interest rate.
How many PremiumSaver accounts can I have?
You can have one PremiumSaver account.
Can the interest rate change?
Yes, interest rates offered on our High Interest Savings Account, Purpose Saver and PremiumSaver are variable and may change. Our Term Deposits have fixed rates.
Term Deposits
How do I open a Term Deposit?
If you are an existing customer and would like to open up a Term Deposit, log in to your RaboDirect account, click 'My quick links' and select 'Open a new Term Deposit'. If you're a new customer, click on the 'Apply now' button on the Term Deposit page on our website.
You will also get a High Interest Savings Account to be your 'primary account'. The HISA will be used to control all your RaboDirect accounts or investments. Your HISA is connected to your Linked account, via which you put money in and take money out of your RaboDirect account(s).
Is there a minimum amount required to open a Term Deposit?
Yes, there is a minimum opening deposit of $1,000 for all our Term Deposits.
How many Term Deposits can I open?
You can open as many Term Deposits as you like with a maximum value of $2 million per Term Deposit.
What investment periods are available?
You can select Term Deposits from any one of the following terms:
1, 3, 6 or 9 months, 1, 2, 3, 4 or 5 years.
Does the interest rate stay the same regardless of the interest payment option I choose on a Term Deposit?
The interest rate will vary depending on the interest payment frequency chosen on your Term Deposit. View current rates and payment options on the Term Deposit page on our website.
What interest payment options are available on Term Deposits?
On terms of one year and over, you can choose to have your interest paid back to the RaboDirect account which you used to originally fund your Term Deposit account monthly, quarterly, semi-annually and annually. View interest payment options on the Term Deposit page on our website.
When is interest paid on a Term Deposit?
For investment periods of less than 1 year, interest is paid on the maturity of the Term Deposit. For investment periods of 1 to 5 years, interest can be paid monthly, quarterly, semi-annually and annually depending on interest payment frequency selected.
Is there a penalty for breaking my Term Deposit?
Yes, fees are applicable. Please refer to the Terms and Conditions. for details.
How do I cancel a Term Deposit?
To cancel your Term Deposit, please call us on 1800 445 445, from 8am to 7pm (Sydney time) Monday to Friday and we will arrange this for you. Early termination fees are applicable, these are detailed in the Terms and Conditions.
How do I cancel an automatic reinvestment?
Automatic reinvestments can be cancelled online. Visit the 'Term Deposits' section, click on 'Term Deposit Summary' and select 'Cancel auto-reinvest' from the Action button.
Where can I see the interest payments I have received on my Term Deposit?
To see a full list of interest payments on your Term Deposit, click on the Term Deposit you would like to view from the 'Account balances' section on the home page of your online account. Interest earned over a chosen period of time can be viewed using the 'Portfolio growth' feature on the home page.
Can I choose to have interest added to the principal automatically?
Yes. For investment terms of 1 year or less you may select to capitalise your interest payments in conjunction with our automatic re-investment option.
What does 'automatic re-investment' mean?
If you select automatic re-investment, upon maturity your money will be re-invested for another term of the same length. The prevailing interest rate at the time of re-investment will apply to the new term. For Term Deposits of 1 year or less you can also choose to capitalise your interest in conjunction with your automatic re-investment option. In this case the interest earned on your maturing deposit will be added automatically to the principal balance of the new Term Deposit.
Can I view my matured Term Deposits?
Yes. To see your matured Term Deposits, visit the 'Term Deposits' section in your online account.
Managed Funds
What are Managed Funds?
Managed Funds are a great way to invest in a range of assets such as shares, property and bonds using one simple product. You will have the ability to pool your funds with a lot of other investors and let the experts manage it for you. Investing in a Managed Fund can deliver a number of advantages compared to direct, individual investment, including:
• Buying power
• Economies of scale
• Diversification
• Professional management
• Access
How do I buy Managed Funds?
Managed Funds can be bought via your RaboDirect account. Once you are logged in to your account, click on "My Managed Funds" and choose "Find and buy funds". When you have chosen the funds you would like to purchase, click the 'buy' button which will guide you through the process.
Is there a minimum investment amount for Managed Funds?
The minimum amount per Managed Fund order is $250.
When will my Managed Funds order be processed?
Your Managed Funds orders must be placed before 11am (Sydney Time) in order to be completed for that day's listed unit price. Orders are completed and processed as soon as the fund manager provides the fund price, for fund investing inside Australia this will usually be the next business day, for other funds can be up to three business days later. In each case RaboDirect processes your order as soon as we receive confirmation from the fund manager.
What does it mean if a fund is 'on hold'?
The RaboDirect Investment Committee may place a fund manager and/or fund 'on hold' when it no longer meets our selection criteria. The Investment Committee will usually only take this action as a temporary measure and where the outstanding issues are likely to be resolved within a reasonable timeframe.
What are the fees and conditions for Managed Funds?
For details of all Managed Funds fees and conditions, see our IDPS Guide and Terms and Conditions.
What is an investor profile?
No two investors are the same. Some swear by risk, others want capital security above everything; many have a view somewhere in between. You must decide which profile best suits you, your time horizon and your investment objectives. To determine your investor profile, decide how much risk you are prepared to take with your Managed Fund investment. You need to identify your investment objectives, assess your comfort with the various levels of risk and reward, and clarify your long-term investment goals to establish your investor profile.
Where can I view my Managed Funds portfolio?
To view your Managed Funds portfolio, log in to your account and visit the 'My Managed Funds' section.
Do I need to be a RaboDirect customer to purchase Managed Funds?
Yes, to become a customer, click on the 'Apply Now' button on the Managed Funds page to complete the online account application form. You will need to open up a High Interest Savings Account.
What are the fees and conditions?
Details of all fees and conditions can be found in our IDPS Guide and in our Terms and Conditions.
Do I need any specific investment knowledge?
Each Managed Fund comes with a Product Disclosure Statement (PDS) and additional information on the Fund Profile page of our website . We advise you read these documents carefully before placing an order, giving full consideration to your risk profile and investment objectives. When you provide us with a 'buy order', you must confirm you have received the Product Disclosure Statement. This can be found in the Fund Selector adjacent to the 'buy' button for each fund, or on the 'Buy units' in a fund screen.
How do I know if my order has been completed?
You can check if your purchase has been completed in your Managed Fund Portfolio, those orders yet to be confirmed are shown as 'Pending'.
Can I amend an order?
Yes. You can amend an order but you must first cancel the existing order before placing the new order.
How do I cancel an order?
Your Managed Fund portfolio will show the status of all outstanding orders. Only pending orders can be cancelled. Choose 'Pending orders' from the 'My Managed Funds' section of your online account, and select 'Cancel order' from the Actions menu of the order you would like to cancel.
When are orders processed?
Orders for Managed Funds are only completed during working hours on regular business days.
How frequently do Managed Funds pay distributions?
Different funds may pay distributions at different times of the year and this will typically depend upon what type of fund it is. Funds will schedule to pay distributions either monthly, quarterly, semi-annually or annually. To find out how often a fund schedules to pay distributions, it is best to refer to the fund's Product Disclosure Statement (PDS). Any distributions will be paid directly to your RaboDirect account, so refer to the PDS to get an indication of when you can expect this to happen. A distribution will not necessarily always be made on a scheduled distribution date, as the performance of a fund will impact on its ability to pay money back to investors.
What is the role of the RaboDirect Investment Committee?
The Investment Committee is responsible for managing and maintaining the relationship with providers of the Managed Funds that RaboDirect offer and ensuring that the funds we offer continue to meet our selection criteria. The Investment Committee is required to uphold our selection philosophy, safeguard the selection criteria, guidelines and procedures of the selection criteria. The role of the Investment Committee is not to verify the quality of the fund providers and/or Managed Funds.
What should I know about tax on my Managed Fund investments?
The following FAQs are a general summary of some of the Australian taxation implications associated with individual residents owning Managed Funds. The information is based on current Australian tax laws in force as at 1 May 2012. These laws may change at any time. You should consult your own tax adviser in relation to your investments. After the end of each financial year, RaboDirect will provide you with your consolidated annual tax statement showing the tax components of the distributions you received during the year as well as a capital gains tax report. As an individual investor, you can use the information in these two reports in your personal tax returns.
Will Withholding Tax apply to the distributions?
Where you have not provided RaboDirect with a valid TFN, ABN or exemption code, the distributions on your units may be subject to withholding tax. RaboDirect may be required to deduct withholding tax at the maximum marginal tax rate plus the Medicare levy (currently 46.5%) from payments of those distributions it makes to you. The amount withheld will be displayed in your annual statement credited against your assessment, and may be refunded by the Australian Tax Office ('ATO').
Do I have to pay Capital Gains Tax?
The Capital Gains Tax (CGT) rules are complex and you should consult your accountant or tax advisor to assist you with your CGT position. RaboDirect will provide you with a CGT statement for the end of the financial year that may assist you with determining your CGT position. The CGT statement will be produced on the basis that you are an Australian individual resident. Refer to the annual tax information section below.
What are my tax compliance obligations?
You will be required to file an income tax return and declare distributions you have received, and taxable gains made on the sale of your units (if applicable) in the financial year in which those events occurred.
Online SMSF
How much does ongoing administration for my SMSF cost and is it included in my $695 establishment fee?
If you choose for Cavendish to take care of your ongoing SMSF administration you will pay a fee directly to them for this service. The minimum fee payable to Cavendish is $2,000 for the first year and the monthly fee is $240. You can set Cavendish up on your RaboDirect 'Payee List' for this payment to be made automatically every month. Administration fees are not included in your $695 establishment fee.
How do I pay my $695 establishment fee?
You can pay your establishment fee electronically via internet banking to: Account name: Rabobank Australia Ltd. BSB: 142-201 Account number: 10000001-04 You must include your reference number in the transfer details for the transaction so we can identify your payment. You will receive your reference number once you submit your online application form. If you don't have your reference number call us on 1800 445 445, from 8am to 7pm (Sydney time) Monday to Friday.
Who can set up a RaboDirect Online SMSF?
To set up an Online SMSF with RaboDirect you must:
a. Be over the age of 18
b. Have not been convicted of an offence involving dishonesty
c. Have not been subject to civil penalties under the Superannuation Industry (Supervision) Act
d. Have not been insolvent, under administration or an un-discharged bankrupt
e. Have not been disqualified by a regulator (ATO or APRA).
Strict rules apply to Self Managed Super Funds, please consider the following before setting up a RaboDirect Online SMSF:
i. Are you eligible to perform the duties of a trustee? ii. Are you aware of your responsibilities as a trustee?
iii. Do you have sufficient funds in your super to make the extra costs of an SMSF worthwhile?
iv. Have you consulted a financial planner, accountant or lawyer about setting up an SMSF?
How long does it take to set up my SMSF?
We'll do everything we can to get your SMSF set up as quickly as possible and we'll keep you up to date every step of the way. The ATO generally takes between 4-6 weeks to complete registration of your SMSF. If you have elected for RaboDirect to organise the incorporation of a new company for a corporate trustee, this will take an additional 3-4 days. Setting up the SMSF (and company where requested) will start once you have returned your correctly completed Set Up Pack to RaboDirect, so the sooner you return your completed documents to us, the sooner we can send the documents to the ATO .
Can my financial planner/accountant set up my SMSF for me?
Yes. They can submit your application on your behalf and take care of the paperwork for you. You and your SMSF members will still need to sign the relevant set up documents.
I want to set up my SMSF with a corporate trustee? Do you set up a company for me?
Yes. As part of your SMSF set up we can also set up a company for your corporate trustee. You just need to tick 'yes' in the Company Details section of your online application form. It will cost $840 (in addition to the SMSF establishment fee) to set up a new company and the fee is payable to Cavendish by cheque, an invoice will be provided in your Company Set Up Pack.
Why do I need a bank account for my SMSF?
You need a bank account in your SMSF's name to manage your SMSF transactions including:
• Rollover of any superannuation money into your SMSF
• Super contributions (paid into your bank account)
• Investment income (paid into your bank account)
• Expenses and liabilities of the fund (paid out of your bank account )
I already have a bank account. Can I use that for my SMSF?
Unfortunately not, the bank account must be in the name of your new SMSF. Your SMSF bank account must be kept separate to each member's individual bank accounts to protect the assets of the SMSF. When you use RaboDirect Online SMSF we'll automatically set up a RaboDirect High Interest Savings Account for your SMSF.
How can I find out what interest rate my SMSF account will earn?
View current interest rate on our Online SMSF page on our website.
Who is Cavendish?
Cavendish is our expert SMSF partner. They're award winning SMSF specialists with nearly 20 years experience in superannuation. You can choose for Cavendish to look after your ongoing SMSF administration. They'll take care of your paperwork and make sure you comply with your obligations as a trustee. We have chosen to partner with Cavendish because we believe their administration service is the best in the market. Just tick the ongoing administration box when you complete your online application and Cavendish will be in touch to walk you through how the ongoing administration service works.
I would like to look after the ongoing administration of my SMSF myself. Is that possible?
Yes. The great thing about RaboDirect Online SMSF is that you're in control. You choose the providers you want to use. We have chosen to partner with Cavendish because we believe their administration service is the best in the market, but this service is optional.
How do I rollover my existing Super into my RaboDirect Online SMSF?
RaboDirect can arrange everything for you. All you need to do is tick the rollover box on your online application. We'll organise the paperwork and get your Super rolled into your RaboDirect High Interest Savings Account once it's established.
Do I have to keep all of my Super with RaboDirect Online SMSF?
No. The great thing about RaboDirect Online SMSF is that it gives you control and flexibility. You can use your RaboDirect Online SMSF to make investments outside RaboDirect.
What will I see when I log in to my RaboDirect Online SMSF account?
When you log in you will see your Online SMSF High Interest Savings Account. You can also choose to open a PremiumSaver account, or invest in a range of Term Deposits and Managed Funds. We set everything up for you so you only have to complete one form, from here you will be able to easily manage all your investments and reporting requirements.
How do I invest in Managed Funds and Term Deposits with my RaboDirect Online SMSF?
It's easy to invest online with a RaboDirect Online SMSF. Log in to your account with your Digipass at RaboDirect.com.au. Then select either Managed Funds or Term Deposits and click on the investment of your choice and follow the prompts to start investing.
Where can I find more information about the Managed Funds available?
You'll find all the information you need at RaboDirect.com.au. Our online fund selector is packed with useful research to help you search, sort, select, compare and buy your preferred Managed Funds.
Where can I find more information about the Term Deposits available?
Use our comparison table on the Term Deposits page on our website, to find the best rate and term to suit your investment needs and see how we compare with other banks.
Can I invest in shares with RaboDirect Online SMSF?
You will still need to place your trades through your preferred broker, but you can pay for share purchases and receive any dividend payments into your RaboDirect Online SMSF High Interest Savings Account.
How do I invest in investments with other providers?
It's easy to settle investments with RaboDirect Online SMSF using the 'pay anyone' facility. Log in with your Digipass at RaboDirect.com.au, and follow the prompts to set up a new Payee and make the payment.
