The Cash Account is the central hub for managing transactions in and out of your PremiumChoice accounts. It’s a transaction facility required for the administration of your account and may not be an appropriate long-term investment.
You’re only required to hold a minimum amount in your Cash Account. For the minimum Cash Account requirement, please refer to the relevant disclosure documents.
If you’re seeking cash investments like term deposits and cash funds, check our Investment List and speak with your financial adviser.
The Cash Account is allocated across the following two investments:
You can find out more about these investments here:
The Interest rate we pay for balances held in the Cash Account will change from to time depending on movements in the financial markets, banking conditions and changes in the Reserve Bank of Australia (RBA) official cash rate.
Current Cash Account target rate (% pa) 0.00
Interest is calculated daily and paid to the Cash Account quarterly. If your Cash Account is negative, you’ll be charged this same interest rate on your negative balance which will be offset against any positive interest accumulated during the quarter.
This may happen if you buy investments using proceeds from sales that aren’t final, or if you haven’t adequately catered for fees or other transaction payments coming from the Cash Account.
The table below shows the distribution applied to the Cash Account each quarter.
The actual asset allocation may vary from time to time for different Services. And the actual distribution rate may vary slightly between different Services.
Cash Account Fee:
A Cash Account fee of up to 0.75% pa is charged in addition to the other administration fees you pay on your PremiumChoice accounts.
The Cash Account fee is based on your daily Cash Account balance and will be deducted before net interest is paid to your account. We’ll ensure the interest paid to you on positive Cash Account balances is not lower than 0% pa, by reducing the ‘Cash Account fee’ as necessary.
1 This rate is net of the Cash Account Fee