Non-bank lender launches 90-day notice account
La Trobe Financial Group has launched a new investment product to help SMSF investors manage their portfolio liquidity and pension needs, with recent rate cuts continuing to place pressure on yields.
La Trobe Financial Group has added a 90-day notice account to its investment product suite which offers short-term duration investments at an initial investment rate of 3.1 per cent per annum paid monthly.
The new account provides a source of monthly income as well as access to funds with 90 days of notice.
La Trobe Financial chief investment officer Chris Andrews said SMSF investors are finding the hunt for yield to be increasingly difficult, and recent rate cuts by the Reserve Bank have only added to their misery.
“Our 90-day product is an addition to La Trobe Financial’s already strong suite of capital-stable, income-generating investment offerings,” Mr Andrews said.
“We have heard for some time that SMSF investors are looking for alternatives in the 90-day space to manage their portfolio liquidity, pension and investment allocation needs, and the 90-day notice account is our response to that demand.”
Mr Andrews said that for the past several years, La Trobe Financial has been aware of the challenges that investors face in generating a reasonable income in a hyper low-rate environment.
“The pain is particularly acute for investors who remember paying record high interest rates on their home loans, only to have savings rates plunge as they enter into retirement,” he said.
“As we have stated repeatedly over the last five years, we believe that this current low interest rate environment will persist for years to come and it is critical that investors take steps to identify alternative income sources.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
