Self-managed superannuation fund (SMSF) members with cash in savings accounts are missing out on as much as 1.4 per cent in the unconditional savings interest rates offered by banks, according to Mozo.com.au.
The comparison site said on a $200,000 cash balance it was a difference of $2834 in interest a year, and would make a big difference to an SMSF member’s retirement.
The difference between the highest and the lowest interest rates for SMSF term deposits was up to 1.15 per cent on a five-year term. Mozo found on a $200,000 investment that was a difference of $11,500 in interest over five years.
Mozo’s data insights director, Andrew Duncanson, said: “Whether you’ve got $5,000 or $250,000 in cash to invest, don’t think that there is some kind of trade-off between a lower interest rate and big bank safety”.
“We urge you to shop around and get the best rate you can,” he said.