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.

To keep them relevant, TermPlus Target Rates are determined using a fixed amount above the RBA cash rate.  The fixed amount varies depending on the Term.

As the RBA changes the cash rate from time to time, so the Target Rate will fluctuate with those changes. The fixed amount above the RBA cash rate does not change.

We have designed TermPlus with the aim of providing stable monthly income, and capital stability.

To achieve this aim, we go through a rigorous manager assessment process managed by Mercer. We only invest with global private credit managers who have demonstrated track records originating and managing loans to mid-sized corporate borrowers. The portfolio is highly diversified to minimise concentration risks, with over 2000 loans across the US and Europe, via 19 managers to minimise single manager performance risk.

All features of our term accounts, from the secure online platform, to our intentionally floating income rates that are linked to the cash rate, the ability to take your monthly income as payments into your bank account, and the layers of built in protections, have been crafted with the aim of delivering a best-of-breed term account product that delivers reliable monthly income, and capital stability.

TermPlus allows you to tap into an investment sector with outstanding risk return characteristics.

By putting our own capital at risk, we take a truly customer-first approach whereby we will only receive any return once account holders are delivered their full expected outcomes.

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A comprehensive summary of the risks to consider when investing in TermPlus is set out in the TermPlus PDS.

The TermPlus Target Market Determinations note an indicative risk level of Low (that is, over any 20 year period, the Issuer considers that TermPlus is likely to experience up to 1 year of negative annual returns).

Global private credit (the underlying asset class held by TermPlus accounts) benefits from a number of key features, including close management of loans by experienced credit managers; and contractual rights to interest payments, seniority, security and capital repayments. These management practices and contractual protections have historically resulted in lower default rates and higher recovery rates for private credit assets relative to other credit alternatives.

It is still important to note that all investments carry some level of risk, and the value of your investment may go down. 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. You should consider all the risks involved and whether they are appropriate for your objectives and financial circumstances. A complete summary of all possible risks and protection mechanisms is available in the TermPlus PDS.

No. Your investment, and income, are underpinned by a diversified portfolio of global private credit loans to mid-market companies is the US and Europe, through investment managers with with demonstrated experience and consistent track records of performance.

TermPlus is not a bank. An investment in a Term Account in TermPlus is not a bank deposit or a term deposit with a bank.

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 all your term accounts, track your earnings and access tax statements etc.

TermPlus does not charge any account or transaction fees.

The underlying master portfolio that is used to achieve the Target Rates paid to TermPlus accounts engages a range of highly rated global private credit fund managers who do charge fees to TermPlus. These fees may impact the TermPlus returns.

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

Your Income payments are based on the starting balance of your Account, and any subsequent reinvested income payments (should you choose to reinvest some of your monthly income).

As this is a fixed term account, no additional funds can be added or withdrawn from your account over the course of your fixed term.
If you would like to add new funds to earn Income, this can easily be done by opening another Term Account using the ‘add account’ button on your dashboard.

You have 2 choices at the end of the Term.

1. Roll your account balance into a new Term of your choice, to continue receiving monthly income payments.
2. Withdraw your closing balance back into your bank account.

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

Sure do, and they’re growing – just head over here:  https://termplus.com.au/reviews/

TermPlus has been featured in several highly regarded news and investment publications that have recognised our innovative accounts, and commitment to customer-centric solutions. These articles offer valuable insights into who we are, what we do, and how we’re reshaping the term account landscape.

We encourage you to explore these articles to learn more about our mission, values, and how we’re redefining investment opportunities. Have additional questions? Our team is always here to help!