Active term deposit strategies required in low interest rate environment
24
May
2013
From Curve Securities
Curve Securities has said the recent historic rate cut demonstrates the need for advisers to access higher term deposit rates than are simply available through most bank, building society and credit union branches.
Managing Director, Andrew Murray, said financial advisers are typically locked out of accessing term deposit ‘specials’, which can pay a higher interest rate than standard retail term deposits.
“Curve Securities has placed more than $9 billion in deposits since our launch in 2009. Currently we have more than $2 billion in deposits. Typically our clients include private and public companies, local governments, unions, managed funds, health funds, religious groups, charities, SMSF and authorised deposit‐taking institutions throughout Australia. However, we are very pleased to announce that we have now developed an offering aimed wholly at helping financial advisers find the best rate for their clients.”
Curve Securities’ ‘TD Gateway’ saves advisers considerable time and effort by opening up access to a wide range of term deposit options to retail and wholesale clients of financial advisers, planners and accountants.
“Our house view is rates are likely to stay low for at least the medium term and could even go lower. With most advisers now charging a fee for service and so many clients still sitting in cash, finding ways to efficiently generate additional value is paramount. Advisers cannot afford to let their client’s cash holdings simply sit in the bank, but they also need a service that is simple to use and takes care of all administration.”
Mr Murray said Curve Securities had made strong headway into ‘middle markets’ through it’s personalised ‘valet’ approach and now hoped to replicate this success in the advisory space.
“We have seen very strong demand for our streamlined, zero-cost service. We are committed to now making our offering available to advisers and will be making further announcements in the coming weeks.”
TD Gateway allows advisers to quickly and simply identify the best short and long term interest rates available in the market. The Gateway typically caters for deposits of $50,000 to $5,000,000. Curve Securities manages all the administration and application and ensures the term deposit is set up at the secured rate and nominated term. The service is free to advisors and funds are placed directly with the bank, building society or credit union concerned.
