Are low interest rates costing your clients?

Melbourne Cup Day wasn't just about the races and the champagne. It was also the day when the Reserve Bank once again announced that interest rates would stay on hold. While good news for borrowers, savers were not so happy.

In addition, with share markets and property prices on a high, not everyone is looking to invest - many people still want the lower risk options of cash.

But whereas cash management accounts were once a viable option, many are now paying at or below the cash rate. Meanwhile, the cash rate of 1.5% isn't keeping up with inflation of 1.8% (source:

In practice, this means that having their funds in an at-call cash account could actually be costing your clients money.

If you have clients who want daily liquidity - i.e. access to their money when they need it - as well as competitive returns well above the cash rate, it's time to look at Smarter Money Investments.

The Smarter Money Active Cash Fund returned 3% after fees in the 12 months to October 2017, while the Higher Income Fund returned 3.7% in the same timeframe (source:

Moreover, these returns were generated in a low-risk, low-volatility investment in Australian bank bonds and deposits.

If your clients need their cash to work harder, get in touch with the team:

Luke Bouris

Business Development Manager

Ph 0414 549 400

Cosimo Vallelonga

Investment Specialist

Ph 0402 895 072