About the Fixed Term Investment option

What are the benefits of the Fixed Term Investment?

You'll benefit from:

• a predetermined return at a competitive interest rate if held until the end of the term
• favourable tax rates for super
• the flexibility to split your remaining super with Maritime Super’s five other market-linked investment options

It’s suitable for members who like the idea of knowing in advance the investment return for the next year – you know what your return will be, which gives you peace of mind.

To learn more about the Fixed Term Investment, contact Member Services on 1800 757 607.

How long is the term for the Fixed Term Investment?

12 months – this means that you cannot access or switch the amount you have invested in the Fixed Term Investment before the 12-month maturity date.

What is the minimum investment amount?

$20,000

When can I make an investment?

The investment dates are: 1 March, 1 June, 1 September, 1 December.
You must apply for the Fixed Term Investment no less than 5 business days before the investment date.

How do I go about putting some of my super account balance into the Fixed Term Investment?

Simply complete the Fixed Term Investment application (which can be obtained by clicking here or by contacting Member Services on 1800 757 607). Once you’ve completed the form, return it to us by fax or post. We need to receive your form by 5.00 pm (AEST) 5 business days before each term commences so that we can process your request.

Can I invest all of my superannuation balance in the Fixed Term Investment?

No – you can only invest up to 80% of your account balance (where member investment choice is available) in the Fixed Term Investment.

What is the interest rate for the Fixed Term Investment?

The interest rate is fixed approximately 2-3 weeks before the investment date and will be published on the website.
The interest rate is net of fees and taxes.
Interest on the Fixed Term Investment is credited at the end of the 12-month term. If any part of your Fixed Term Investment is redeemed prior to the end of its term, you are not entitled to any interest automatically, although some interest may be paid.

What is the risk profile for the Fixed Term Investment?

The Fixed Term Investment provides the short-term security of a predetermined interest rate (so long as you hold the investment for the full term), but you should not expect any capital growth.
Because the interest rate is fixed for the term of the investment, you cannot take advantage of any interest rate increases during the term of your investment.
There is little risk of a negative annual return or capital losses. This could only occur in the extremely unlikely event that the underlying investment manager (either an Approved Deposit Taking Institution (e.g. bank or credit union) or a life insurance company) failed to provide the interest rate or failed to return all the amount invested.

What is the investment timeframe for this option?

It’s an investment option with a short-term focus and, on its own, is generally not suitable as a long-term strategy for building retirement savings. It should be used following advice from a financial planner as part of an overall investment plan that is tailored to your circumstances. It’s also important to remember that this option has no past investment performance in the Fund.

Can I split my super between the Fixed Term Investment and other investment options?

Yes – you are free to split your account balance between the Fixed Term Investment and the other investment options. However, during the term of the Fixed Term Investment, you cannot switch any amount invested in the Fixed Term Investment (or convert an amount invested into a new Fixed Term Investment).

Can my regular contributions be invested in the Fixed Term Investment?

No – the Fixed Term Investment is available only for account balances, and not for regular contributions. If you have a contribution you wish to invest in the Fixed Term Investment, make sure you deposit it at least 10 business days before the investment date to ensure that it is allocated to your account by the investment date.

If I want to switch to the Fixed Term Investment when does my form need to be in?

Investing in the Fixed Term Investment is easy and quick. Please note that your application must be received by us 5 business days prior to the investment date. Once your application is processed, we will send you a letter to confirm the investment amount, the interest rate and the maturity date.

What are the fees associated with the Fixed Term Investment?

The total management costs for the Fixed Term Investment are between 0.35% pa - 0.52% pa of your balance in this option. The management fees are deducted before declaring the interest rate so that the quoted interest rate will be the amount credited to your account at the end of the 12 months, with no further deductions, if the investment is held until the end of the term.

I’ve changed my mind, and would like to switch from the Fixed Term Investment to another investment option – can I do this before the end of the 12-month term?

No, you cannot switch during the term of the deposit.

Can I make a withdrawal from my Fixed Term Investment before the end of the 12-month term?

Access before the end of the 12-month term is generally limited to situations required by superannuation law or in exceptional circumstances (such as death, total and permanent disablement, terminal illness or a Family Law payment split). In other circumstances you will need to apply to the Trustee, and early access to the investment may not be available. If the Trustee approves early access to your Fixed Term Investment, you are not entitled to any interest on your investment for any of the term. However, the Trustee may pay some interest (based on the circumstances at the time).

Will you let me know when my Fixed Term Investment is approaching maturity?

Yes - we will send you a letter approximately 30 days before your account matures.
You will then need to let us know what you’d like us to do with the amount invested in the Fixed Term Investment, as there is no automatic reinvestment.

What happens at the end of the 12-month term? Is my money automatically reinvested in the Fixed Term Investment?

There is no automatic reinvestment and you will need to inform Maritime Super of what you’d like to do with the amount invested in the Fixed Term Investment at maturity date.
We will contact you close to the maturity date to receive your instructions. In the event that you do not provide reinvestment instructions prior to the end of the term, we will invest the proceeds of your Fixed Term Investment according to your future contribution investment strategy (if you have one), or the Growth option in default