Frequently Asked Questions

You have two choices on how to receive your monthly Income.

1. 1. Reinvest: Add it back into your account balance to earn additional Income. Reinvested Income will receive the same Target Rate, Maturity Date and layers of Protections as your Opening Balance.
   2. Pay to bank: We pay it to your linked bank account every month.

Simply make your election in your account dashboard.

You can change your election at any time during the month. Just make sure you make your election at least 5 business days before month-end for your preference to be updated, otherwise, it will apply to the one after that.

Your Income comes first.

Target Rates are not guaranteed, are not forecasts and may not be achieved. However, to provide reliability of Income, we invest our own money alongside Account Holders, in what we call a Support Account.

The Support Account seeks to provide reliable Income via two layers of protection.

1. Priority Income Entitlement
Because we’re committed to supporting your saving journey, we have built in a Priority Income Entitlement mechanism to TermPlus. Any income the Support Account has in the last 12 months is available to top up your monthly Income for any given month, if returns fall short. Think of it as an extra income pool that works to maintain Target Rates and returns for your account in the event of an earning deficit.

2. Income Stabilisation
In the event that the value of your Term Account balance decreases, your Target Rate Income for subsequent months will still be calculated based on the amount you initially invested for the Term, plus any Income you’ve reinvested, rather than your balance. This customer-first approach means more stable and reliable Income.

The monthly payment of accrued Income is not guaranteed and is subject to TermPlus generating sufficient return.

To keep Target Rates relevant, our accounts rates aim to deliver a set amount above the Reserve Bank of Australia’s Official Cash Rate (“Cash Rate”). Each Term has a specific Income objective calculated by reference to the Cash Rate, plus a fixed spread. If the Cash Rate changes, our Target Rates change in line with the Cash Rate.

The Target Rate is expressed on an annualised basis, net of any fees and costs.

The underlying master portfolio of global investments that is used to achieve the Target Rates paid to TermPlus accounts pays fees to underlying fund managers. These fees may impact the Income paid by TermPlus.

For a breakdown of fees and costs please refer to the PDS.

All investments carry some form of risk. In the event that the value of your Term Account balance was to decrease during the course of your Term, any excess TermPlus Return in following months (after paying that month’s Target Rates to Account Holders) is further allocated pro-rata across all accounts until the value of each Term Account is back to its total Invested Amount.

At the end of your Term, if the Closing Balance of your Term Account, plus any Income that has been paid or accrued to you, is still lower than your total Invested Amount, TermPlus goes one step further by building in an additional layer of support that will top up your account balance by up to 5% of your total Invested Amount over the life of your term.

Read more about our support mechanisms HERE.

Easy. Quick. Seamless. Your TermPlus Account has its own easy-to-use account dashboard from where you can manage and track your applications, get an overview of your accounts, track your earnings and access tax statements etc.

Your Income payments are based on the starting balance of your Account. You have the option of adding Income payments to your account balance, which means that they will accrue additional Income in following months. If you would like to add new funds to earn Income, this can be done by opening another Term Account using the ‘add account’ button on your dashboard. As this is a ‘term based’ account, funds cannot be withdrawn until the Term is over.

You have 2 choices as to what is to occur at the end of the Term.

1. Rollover into a new Term
2. Withdraw your balance to be paid back into your bank account, this would include any income reinvested through the course of your term account.

You also have the option to do a partial withdrawal and partial rollover.

End of term elections need to be made by the due date that is noted on your account in the customer dashboard.

The TermPlus Target Market Determinations note an indicative risk level of Low to Medium (that is, over any 20 year period, we consider that TermPlus is likely to experience between 1 and less than 2 years of negative annual returns). Private credit (the underlying asset class held by TermPlus accounts) benefits from lender protections, such as contractual limitations and covenants on the borrower, payment priority to the lender, and valuation methodologies that can look through shorter-term market volatility. These enhanced protections have historically resulted in lower default rates and higher recovery rates for private credit assets relative to other credit alternatives. It is however important to understand that the value of your investment may go down. You should consider all the risks involved and whether they are appropriate for your objectives and financial circumstances. The Income paid and maintenance of your initial investment will depend on the performance of the investments made by TermPlus and no guarantees can be made regarding either. Past performance is not a reliable indicator of future performance.

We have sought to mitigate these risks further, through the Priority Income, Income Stabilisation, and Savings Support mechanisms.

A complete summary of all possible risks and protection mechanisms is available in the TermPlus PDS.