BT Wrap takes $400 Million in term deposits and bumps one-year term deposit rate to 8.4%

Monday 16 June 2008

BT Financial Group has today increased its one-year term deposit rate to 8.4 per cent as investor ‘flight to cash’ sees $400 million ploughed into term deposits since BT added the cash option to their BT Wrap and SuperWrap platforms just nine weeks ago (14 April 2008).

Head of BT Wrap Solutions, Chris Freeman, said term deposits on wrap have struck a chord with investors who are seeking the low-risk, income-generating characteristics of cash.

“For those in retirement or eligible for a transition to retirement strategy, securing 8.4 per cent tax-free income for 12 months is a pretty compelling proposition in the current environment,” Mr Freeman said.

“While recent market volatility has seen investors divert their investments from traditional asset classes of property and Australian and international equities, around one in every three dollars coming into term deposits on the platform is new money,” Mr Freeman said.
Around 80 per cent of funds administered by BT’s platform is super money - either invested through BT SuperWrap or by SMSF investors using BT Wrap as their fund’s administration platform.

Mr Freeman remarked that the considerable tax advantages of saving in super are likely to be a factor in the strong support for term deposits as investors realise the benefits of moving their money from ‘traditional’ high-interest savings accounts into the tax advantaged super system.

Term deposits are provided by Westpac Banking Corporation. Minimum investment is $75,000.

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Further information: Allison Davis BT Media Relations 03 8253 2735 / 0419 746 655

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Information you should know:
BT Portfolio Services Ltd ABN 73 095 055 208 (BTPS) operates Wrap and administers SuperWrap RSE R1001327 (the Wrap Products). Trust Company Superannuation Services Limited ABN 49 006 421 638 RSE L0000635 is the trustee and issuer of SuperWrap. You should obtain and consider the offer document relating to Wrap or SuperWrap before deciding whether to acquire, continue to hold or dispose of the product. The information contained in this document is given in good faith and has been derived from sources believed to be accurate at its issue date. However, it is general information only and should not be considered a comprehensive statement on any matter nor relied upon as such. No company in the Westpac Group nor any of their related entities, employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way including by reason of negligence for errors or omissions. This disclaimer is subject to any contrary requirement of the law. © BT Portfolio Services Ltd.