Self-managed super funds are available for people who opt to manage their superannuation themselves as opposed to a superannuation company. The members of a self managed super fund are also the trustees of the fund.
Self-managed super funds are a $332.3 billion industry that is growing in size and is sometimes referred to as do-it-yourself super or DIY super.
Some people choose to take their super into their own hands by establishing their own self-managed super fund because they have access to a broader range of investment options to set themselves up for retirement. It takes the middle man out of the equation so you don't have to pay member fees or lose profits by paying commissions to financial advisors.
There are a number of investment strategies available for managing you own super fund including depositing your super funds into a term deposit account.
Below are some reasons why you may choose a term deposit over other types of investments for self-managed super funds.
- Term deposits are one of the lowest risk investments you can find as they are a fixed investment where your money is locked away at a set interest rate for an agreed amount of time.
- Term deposits are considered a less volatile fixed-term investments and can be a better option for many long-term investors.
- Term deposits are easier to manage, as you just deposit the money and let it be. For instance, with some online savings accounts you have to deposit a minimum amount each month to continue receiving the high interest rate.
If you are planning on managing your super fund yourself, make sure you do your homework and read the product disclosure statement before signing up to a term deposit account.
Shop around and compare term deposit rates online to earn more and set yourself up for retirement. For a list of 90 to 120 day term deposit take a look at the table below.
Be aware however that if you are considering setting up your own self-managed super fund then there are a list of guidelines and rules set by the Australian Government that you must adhere to. For more information on where to start with setting up your own DIY super fund, visit the ATO website.