SMSF Operating Bank Account
Your SMSF must have a main operating bank account in order to receive roll-overs, contributions and pay expenses.
Some SMSF bank accounts offer online access only. This can cause problems if Trustees want to deposit cheques over the counter. Best is to use bank transfers or BPay as cheques are not used any more.
When funds are rolled over from a retail fund to an SMSF, make sure your SMSF is registered for SuperStream. The software we use is SuperStream compliant and we can assist Trustees in setting up their SMSF to allow contributions and roll overs directly to the SMSF bank account.
SMSF Investment account or Term deposit
Trustees who are risk averse may prefer the majority of their assets to be in a bank fixed term deposit.
Retail funds generally pay a low interest rate for cash holdings. With an SMSF you can choose any bank for SMSF fixed term deposits. Bank fixed term deposits offer the following advantages:
- government guaranteed capital up to $250k per account
- interest rates generally better than those offered by retail superannuation funds
- safe option for capital preservation, especially if the Members are nearing retirement age.
Another great advantage of SMSFs is that Trustees can shop around to find the most suitable product and bank account with the highest interest rate. Just remember all bank accounts and term deposit accounts must be in the name of the SMSF.
Operating bank accounts vs Term deposit accounts
Typically, your SMSF would have a term deposit account as well as a main, operating bank account. Different banks and credit unions offer different promotions with varying interest rates. So you can shop around for the best deal.
If your main account is with Macquarie CMA, for example, and you want to invest in HSBC for 6 months at a fixed interest rate, the bulk of your funds are transferred from Macquarie to HSBC and invested for 6 months. When the investment matures, the money reverts back to the operating bank account. You can then shop around once more for another good interest rate (with ANZ let’s say), and again invest for a fixed period. Remember that all bank accounts must be in the name of the SMSF and not in your personal name. For details about who can certify a Deed when you open up a bank account, follow this link. We do not charge a fee to certify Deeds or other supporting documents and happy to assist Trustees in this regard.
For more info about bank accounts, please watch the video below.
Cryptocurrency
Please note if you’re intending on investing in Cryptocurrency that your Bank Account must be ‘Complying’ to accept Cryptocurrency transactions. For more guidance on Crypto please click here.