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Three ways you can take financial control during instability

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Financial Instability

We’re entering a time of uncertainty in Australia and across the world. The situation is changing day by day and it’s likely that life is going to look pretty different for a little while. Working from home, socialising via Facetime and exercising in your loungeroom rather than a gym are going to become the new normal.

One area that has become more uncertain for many people is our finances. The swift lockdown measures have had an immediate impact on our ability to earn money and pay our bills, and there is uncertainty on how long the effects will last for.

While the short-term effects may be painful, there are also longer-term effects that people may not feel for several years.

Most Australians will have at least a portion of their super fund invested in the financial markets and recent volatility is likely to have made a significant difference to their super balances. The ASX/200 index (the top 200 companies that are traded on the Australian stock market) has had some of its biggest daily losses ever in recent weeks, but also some of its biggest daily gains.

At Qudos Bank, we want to help our customers take back control and add some financial certainty into your life during these difficult times. Here are three ways we can help:

1. Shield yourself from market fluctuations with a term deposit

In times of volatility, term deposits can provide certainty with guaranteed returns and the peace of mind from knowing that your money is protected under the Financial Claims Scheme (FCS) for up to $250,000 per customer. The FCS, also known as Australian Government Deposit Guarantee, is a Government scheme which means that even in the unlikely event an Australian financial institution fails, your money will be safe.

Our term deposits are available over 3, 6, 9, 12, 24 and 36 months and offer competitive interest rates and the flexibility of choosing whether you would like to have interest paid monthly, like a salary, or receive the full interest at the end of the term.*

Learn more about term deposits and see how much guaranteed returns you could earn using our Term Deposit calculator.

2. Save for your future with a Retirement Savings Account

Retirement savings accounts (RSAs) are superannuation savings accounts which are able to take advantage of the same protections and tax benefits as a superannuation fund. Our RSAs are designed especially for those looking for security and flexibility with their superannuation, rollovers and allocated pensions.

RSAs offer peace of mind from knowing your retirement savings are well looked after and security as they are protected by the capital guarantee, which means no negative returns.

An additional benefit of our RSAs are the $0 annual fees and $0 account keeping fees^, so all of your money is being used to grow towards your future.

The money in an RSA is intended to be used in retirement so, similar to a super fund, there are restrictions on when the money can be taken out. However, you have the flexibility of choosing either a lump sum or an account-based pension income stream.

Find out more about how the Qudos Retirement Savings Account can help you build a more secure life after work here.

3. Give your SMSF a boost with a DIY Super Saver

A Self-Managed Super Fund (SMSF) can be a great way to take control of your super, but also means that individuals can feel more pressure to grow and protect their assets than they would if they were part of a larger scheme.

Our DIY Super Saver account offers secure returns with the flexibility of a cash account, so you can boost your super when you need to and use the money when you need to.

Learn more about how the DIY Super Saver can give your SMSF a boost here.

We're here to support you

These are just some of the ways that Qudos Bank can help you through this period of uncertainty. If you would like more information on any of the above, or if you would like to discuss your individual situation with one of our financial planners, then please don’t hesitate to call us on 1300 787 787.

 

  Disclaimer:

Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305. The information in this article is of a general nature and has been prepared without considering your objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances.

* Interest can be payable monthly (standard terms only), at maturity (terms <12 months, including special terms) or annually and at maturity (terms >12 months). Standard terms are available for 3, 6, 9, 12, 24 and 36 months. Special terms available for 5, 7 and 11 months.

^ Please note that a withdrawal fee applies if more than 4 withdrawals are made per year and a fee may apply for preparing an actuarial certificate for an allocated pension.

Before opening an account with us, you should read our Financial Services Guidesand our Terms and Conditions for Savings Accounts and Payment Services. For term deposits, you should consider our Term Deposit Interest Rate Brochureand Supplementary Terms and Conditions for Term Deposits. For RSAs, you should consider our RSA Product Disclosure Statement.

Rates current as at 2 April 2020.

Article published April 2020