Maritime adopts term deposit model for new option

Maritime Super has announced the launch of a new fixed-term investment option from next month in a move aimed at combining superannuation savings with retail returns.

The Fixed Term Investment facility, which is available from December 1st 2010, works like a fixed term deposit strategy, whereby members' super is invested for a fixed term of up to 12 months and earns interest at a pre-determined rate if it is held for the full term, subject to the access restrictions under superannuation law.

Maritime noted that the investment option has a short-term focus and, on its own, is generally not suitable as a long-term strategy for building retirement savings.

"It should be used on advice from a financial planner as part of an overall investment plan that is tailored to your circumstances," said the fund.

Meanwhile, speaking to the Financial Standard, Maritime chief executive Peter Robertson said the new option was being launched to meet increasing member demand, suggesting more super holders may be looking to compare term deposits and diversify their investments.

"We have a panel of providers, and every quarter we will go to that panel and say what rate can you offer us for the next 12 months – we will then select the best rate for our members," he said.

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