Saving Account Options For Self Managed Super Funds

With speculation about the global economy high again, many people are starting to look at ways to get more control over their superannuation.

In fact the Australian Taxation Office puts self managed super funds (SMSFs) at the forefront, with this option the largest and fastest growing segment of the industry.

SMSFs give people total control over how their retirement money is invested, instead of relying on the decisions of a larger superannuation company, making these accounts ideal for DIY investors as well as people who want to keep track of their retirement money.

With an SMSF people can choose to manage the account themselves, or use financial and super professionals for advice and maintenance of the fund.

The ATO has an extensive step-by-step guide to setting up self managed super funds, but the key steps are outlined below:

1. Create your trust and trust deed
2. Appoint your trustees
3. Open a bank account for your fund
4. Register with the ATO
5. Prepare an investment strategy

Just like more mainstream superannuation, there are a number of different SMSF options, particularly when it comes to bank accounts.

Often listed under the saving account options on a bank’s website, SMSF accounts give people a chance to find the best place to keep their superannuation, whether they want to actively invest it or just earn more basic account interest.

Some SMSF-eligible account options will also come under the term deposits category, but just a quick online search brings up many of the banks with SMSF services.

The SMSF options available through ANZ, for example, give people a choice of several different accounts and support services for establishing the fund, ongoing administration, investment progress and ATO reporting at tax time.

On the other hand, Westpac offers a structured SMSF with three accounts to help you access and invest the funds accordingly, while RaboDirect offers ongoing administration from experts at Cavendish.

Whether you choose one of these options, or an SMSF with another bank like the Commonwealth or St George, it is important to look at the kind of support and management options as well as any ongoing interest rates and fees so that you can get an account that really works for you.

While SMSF can be expensive if you do not have a lot of money to invest, they provide an alternative to the sometimes-obscure nature of traditional superannuation options. By considering SMSF alongside other super accounts you will be able to find the best way for you to invest in your future.