Report No. 2 April 2013

IN THIS REPORT: We research & rate 141 SMSF savings accounts across 66 financial institutions.

CASH IS A LONG-TERM MARRIAGE, NOT A SHORT-TERM FLING, FOR SMSFs

F

rom fund managers to the Governor of the Reserve Bank of Australia, experts appear to be urging investors away from cash and into more growth-oriented investments. Self-Managed Super Funds (SMSFs) are often the focus of the message, with warnings that a growing “wall of cash” is certain to damage long-term growth and provide lessthan-optimum diversification. The investment markets are improving seems to be the school of thought, so why aren’t SMSF investors ditching their cash for higher-growth products? The answer is quite simple: SMSF investors have always taken a long-term view of their superannuation investments and have consistently held between 25% - 30% of their investment funds as cash. Pre, post and during the GFC, the proportion of SMSF investments held as cash has not varied by more than six percent. As such it appears that cash is a long-term marriage and not a short-term fling for self-managed super funds.

According to the Australian Taxation Office (ATO) Self-managed Super Fund Statistical reports, the proportion of SMSF wealth invested in both cash and direct shares have been remarkably stable over the long term; in 2004, well before the GFC, cash, debt securities and term deposits represented approximately 23% of SMSF assets, compared with 31% in direct shares; in December 2012, cash, debt securities and term deposits represented 28% of SMSF assets, again with 31% being held in direct shares. This points to a long-term investment strategy being correctly applied by SMSF trustees.

It is interesting to note, in the chart to the left, the temporary change to the proportion of direct shares and cash holdings during the height of the GFC, caused by the fall in value of direct share holdings. With the subsequent rise in the value of the direct share holdings as the share market improved from late 2011 onwards, the respective proportions appear to have reverted to their long-term average range.

YOUR GUIDE TO PRODUCT EXCELLENCE

“You need to prepare and implement an investment strategy for your fund, and review it regularly. The strategy needs to reflect the purpose and circumstances of your fund and consider the following: ■ investing in a way to maximise member returns taking into account the risk associated with the investment ■ diversification and the benefits of investing across a number of asset classes (for example, shares, property and fixed deposit) in a long-term investment strategy ■ the ability of your fund to pay benefits as members retire and pay other costs incurred by your fund ■ the needs of members (for example, age, income level, employment pattern and retirement needs). The investment strategy should set out your investment objectives and detail the investment methods you’ll adopt to achieve these objectives. You need to make sure all investment decisions are made according to the investment strategy of your fund. If in any doubt, you should seek investment advice or appoint an investment manager in writing.” ‘Running a self-managed super fund - Your role and responsibilities as a trustee.’ ATO NAT-11032

SMSFs are expected to hit half a million in number before July, with the Australian Taxation Office experiencing a surge of SMSF applications in the months leading up to the end of financial year. Statistically, SMSF members tend to be aged between 45 and 65, with assets per member significantly above the average. In dollar terms, the amount invested in SMSFs has increased from $127.4 billion in June 2004 to $474.4 billion in December 2012 and represents the largest fund type by assets invested. Certainly in dollar terms, the amount invested in cash both currently and into the future is significant and it is important for SMSF trustees to ensure that they are getting the best-value return possible for their members. Our annual star ratings report analyses 141 SMSF savings accounts from 66 institutions to determine those that provide the best value for investors. Accounts are assessed for value with regards to a number of characteristics, including:      

Interest rates Fees Free transactions Accessibility Rebates Features

For more information on the weightings of the various characteristics, see the methodology section at the end of this report.

COPYRIGHT © CANSTAR Pty Ltd ABN 21 053 646 165, 2008. The recipient must not reproduce or transmit to third parties the whole or any part of this work, whether attributed to CANSTAR or not, unless with prior written permission from CANSTAR, which if provided, may be provided on conditions. DISCLAIMER To the extent that any CANSTAR data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR’s FSG for more information at www.canstar.com.au.

YOUR GUIDE TO PRODUCT EXCELLENCE

2

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Base



Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

outstanding value

ADCU Bankstown City CU BOQ Defence Bank FCCS Credit Union IMB ING DIRECT Newcastle Permanent Qantas Staff CU RaboDirect RaboDirect RaboDirect RaboDirect St.George Bank UBank

DIY Super Saver Account SUPER eSAVER Superannuation Savings Account iSaver Superfund Maximiser DIY Super Account Business Optimiser Online Savings Account DIY Super Saver DIY Super Saver HISA Call Personal HISA Call Business Business PremiumSaver DIY Super Saver USaver SMSF

4.25 4.25 4.05 3.00 4.75 3.25 3.25 4.00 3.25 4.00 4.00 3.70 2.95 3.15 3.96

N/A N/A 0.70 1.50 N/A 1.00 1.50 N/A 1.25 1.20 1.20 1.25 1.35 1.20 0.60

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Nil Nil 0.65 nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

              

              

              

No min 1 No min No min No min 1 No min No min No min No min No min No min No min 1 No min

Business eASYSAVER Business Premium Saver MoneyMax eMiser Smart Net Account Ultimate Business Saver e-Saver S35

3.85 2.25 1.25 4.40 3.50 3.00

N/A 2.10 3.00 N/A N/A 1.66

Nil Nil Nil Nil Nil Nil

Nil 1.6 Nil Nil Nil Nil

     

     

     

No min No min 1 1 No min No min

 AMP Bank ANZ Bankstown City CU Beirut Hellenic Bank Citibank Coastline Credit Union

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 1

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 Community CPS Australia monEsaver Internet Acc CUA eSaver First Option Credit Union iT Saver Gateway Credit Union eMax Saver ME Bank Business Investment Acct Qantas Staff CU Bonus Saver Account Qld Professional CU Netsaver Account S50 RaboDirect PremiumSaver Rural Bank ONE DIY Super Saver The Capricornian Savings Accumulator The Capricornian Savings Accumulator-Business The Mutual Business Internet Saver The Rock Building Soc Online Saver Account TIO Banking Essentials eSaver Victoria Teachers Mutual Bank Online Saver

3.45 3.50 3.50 3.50 3.75 1.00 4.00 2.70 3.75 3.80 3.80 3.10 3.00 3.65 3.50

N/A N/A N/A N/A N/A 3.50 N/A 1.75 N/A N/A N/A 0.50 N/A N/A N/A

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil Nil Nil Nil Nil 2.5 2.5 Nil Nil Nil Nil

              

              

              

No min 1 No min No min No min No min No min No min 5000 No min No min 5000 2000 1000 No min

3.00 3.00 2.50 2.75 2.85 3.25

N/A N/A N/A 1.40 N/A N/A

Nil 5.00m Nil Nil Nil Nil

Nil Nil Nil Nil Nil Nil

     

     

     

No min No min 10000 No min 5000 No min

 ADCU AMP Bank ANZ ANZ bankmecu bankmecu

Star Saver Direct Ac S20 eASYCash Management Premium Cash Mngmnt Acc Business Online Saver CMA - High Yield Account Cyber Saver

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 2

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 BankSA bcu Big Sky Building Society CairnsPenny Savings&Loan Catalyst Money Coastline Credit Union Commonwealth Bank Commonwealth Bank Commonwealth Bank Community CPS Australia Community First CU Community First CU Companion CU CUA Defence Bank Defence Bank ECU Australia Encompass Credit Union First Option Credit Union Heritage Bank Heritage Bank Heritage Bank Heritage Bank

Investment Cash Account retirement savings account SMSF CMA Internet Saver Acct S7 Cash Management Account Bonus Reward Saver S25 Business Online Saver Cash Investment Account DIY Super Cash Investment Account Community Reward Account FirstBiz Online Savings Bonus Saver monEsaver Internet Acc Cash Management Ac Cash Management Account maxE Saver Bonus Saver Account Emoney Account S30 Bonus Saver Community Saver Account Money Manager Account Online Saver Target Bonus Account

2.50 3.40 3.10 3.60 2.95 0.25 3.00 2.50 3.00 2.60 3.20 0.10 3.45 3.50 3.25 0.50 2.00 2.50 0.20 2.55 3.10 3.55 0.50

N/A N/A N/A N/A N/A 2.25 N/A N/A N/A N/A N/A 3.25 N/A N/A N/A 3.50 1.55 N/A 3.50 N/A N/A N/A 2.50

Nil Nil Nil Nil Nil 5.00m Nil 5.00m Nil Nil Nil Nil Nil Nil Nil Nil Nil N/A Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil Nil Nil 0.3 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

                      

                      

                      

10000 1 No min No min 500 500 No min 10000 No min No min No min No min No min 1 No min No min No min No min No min 1 1 1 1

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 3

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 Horizon Credit Union Horizon Credit Union Horizon Credit Union Hume Building Society Hume Building Society Hume Building Society Hunter United Credit Un Illawarra CU NSW IMB Macquarie Bank Macquarie Bank MyState nab nab nab Newcastle Permanent Newcastle Permanent Newcastle Permanent Newcastle Permanent Police Bank Police Bank Qantas Staff CU Qld Police Credit Union

Cash Management S6 HorizonDirect S10 Reward Saver Business Cash Management Account Business iSave Cash Management S8 Premium Online Investor Account Cash Management Account Business CMA Cash Management Account Macquarie Cash XL Online Savings Account Business Cash Maximiser Cash Manager Investment Cash Manager Business Cash Management Money Management Acct Rapid Saver Passbook Rapid Saver Statement Market Linked AC S15 Online SuperSaver Acc S8 Qsaver Netlink Direct Ac S20

3.00 3.00 0.00 2.50 3.00 2.50 0.00 2.95 2.85 3.00 3.00 3.00 2.85 2.50 2.25 2.75 2.25 0.00 0.00 3.35 3.25 3.15 3.25

N/A N/A 4.50 N/A N/A N/A 4.56 N/A 0.75 N/A N/A N/A N/A N/A N/A N/A N/A 3.30 4.30 N/A N/A N/A N/A

Nil Nil Nil Nil Nil Nil Nil Nil 6.00m Nil Nil Nil Nil Nil 10.00m Nil Nil Nil Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

                      

                      

                      

No min No min No min 5000 No min 5000 5000 500 1 5000 No min No min 10000 5000 10000 1 5000 1 1 5000 No min No min No min

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 4

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 Qld Police Credit Union Police Retire Safe Select Credit Union Direct Account 020 SGE Credit Union Bonus Savers Account Suncorp Bank Business Saver Account Sutherland Credit Union eSaver Teachers Mutual Bank Cash Management AC S10 Teachers Mutual Bank Reward Saver S6 The Capricornian E $aver Account S29 The Capricornian E $aver Business Account S29 The Mutual Business Maximiser The Mutual Cash Management Account Transport Mutual Credit Union Premium Savers Acct S8 United Community monEsaver Internet Acc Victoria Teachers Mutual Bank Cash Management AC S10 Victoria Teachers Mutual Bank Bonus Saver Account S98 Wagga Mutual Credit Un monEsaver Internet Acc Westpac DIY Super Savings Account Westpac DIY Super Working Account

3.30 3.15 2.00 3.25 3.25 2.80 0.10 1.55 1.55 2.75 2.25 2.00 3.45 3.50 0.05 3.45 3.20 3.00

N/A N/A 1.50 N/A N/A N/A 4.20 N/A N/A N/A N/A N/A N/A N/A 4.20 N/A N/A N/A

Nil N/A Nil Nil 3.00m Nil Nil 5.00m 5.00m 10m Nil Nil Nil Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

                 

                 

                 

No min 1 No min No min No min No min No min 1 1 200 500 10000 No min 5000 No min No min No min No min

2.90 2.10 2.55

N/A N/A N/A

Nil Nil Nil

Nil Nil Nil

  

  

  

500 5000 1000

 ADCU bankmecu Community CPS Australia

Cash Management S9 CMA - Transaction Accnt Cash Management Account

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 5

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 Community CPS Australia Community First CU Companion CU Companion CU Greater Building Society Greater Building Society Greater Building Society Heritage Bank Holiday Coast CU Holiday Coast CU Hume Building Society MyState Northern Beaches CU People's Choice Credit Union Qantas Staff CU Qld Police Credit Union Qld Professional CU Rabobank Australia SGE Credit Union SGE Credit Union SGE Credit Union The Rock Building Soc Transport Mutual Credit Union

SMALLBiz Account Money Market Account S10 Cash Management Account SMALLBiz Account Business Access Account Business Optimiser Account Cash Management Account Cash Management Account Percentage Plus AC S17 i-Saver Account S21 Business Account Saver Account Bonus Saver Account S7 Business and Community Acc At Call Deposits Cash Management Account At Call Savings AC S1 CMA Standard Account Go Green Savings Account Inetsaver Account Reward Me Saver Account Cash Management Account Redi-Fund S7

1.40 2.50 2.55 1.40 1.25 2.25 2.25 2.00 2.60 2.60 1.25 2.50 0.60 2.00 2.50 2.75 1.00 4.00 1.00 2.00 2.25 2.50 2.75

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3.15 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 10m Nil Nil Nil 5.00m Nil

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

                      

                      

                      

100 5000 1000 100 1 1 1 1 10000 No min 1 1000 No min No min No min 5000 No min 10000 No min No min No min 5000 5000

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 6

SMSF Account Star Ratings

Report Date: APRIL 2013

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. This is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

All rates current at April 9th, 2013. Bonus/Promotional Rates are included.

SMSF Savings Account Rate (%) at $100K

Company Name

Account Internet Keeping fee Transaction Bonus/Promo* fee

(as at 9/04/2013)

Product

Base

Phone Banking

Bpay

Cheque

Minimum Opening Deposit

 United Community United Community Wagga Mutual Credit Un

Cash Management Account SMALLBiz Account Cash Management Account

2.55 1.40 2.55

N/A N/A N/A

Nil Nil Nil

Nil Nil Nil

  

  

  

1000 100 1000

Business Management Acc Cash Management S6 Everyday Business Account Premium Standard Account Cash Management Account Savings Investment Acc

3.30 1.25 3.00 4.00 1.25 1.00

N/A N/A N/A N/A N/A N/A

15.00m Nil 10m 10m Nil 6.00m

0.2 Nil 0.2 Nil Nil Nil

     

     

     

1 No min No min 100000 No min 500

 BOQ Encompass Credit Union nab Rabobank Australia SGE Credit Union The Rock Building Soc

your guide to product excellence * Bonus/Promotional Rate Conditions apply. Please see insititution's website for further details. Report Date: April, 2013 (All information correct as at 9 April 2013)

SMSF ACCOUNT STAR RATINGS 2013 - PAGE 7

What are the CANSTAR Self-Managed Super Fund (SMSF) savings account star ratings? CANSTAR SMSF Savings accounts star ratings are a sophisticated rating methodology, unique to CANSTAR that compares SMSF savings accounts in Australia. CANSTAR star-rated products represent a short list of financial products. This short list narrows the search for consumers to products that have been independently assessed and ranked. The CANSTAR SMSF savings accounts star ratings is a transparent analysis comparing all types of SMSF accounts for an array of characteristics such as: 

Interest Rates



Fees



Free transactions



Accessibility



Rebates



Features

The results are reflected in a consumer-friendly 5-star concept, with 5 stars signifying outstanding value offered by the product. Rising stars are those products that would be rated 5-star or higher but have not been in the market for over six months. Rising star products will be formally rated in the next period once more historical data is available.

How does it work? How are the ‘stars’ calculated? Each SMSF account reviewed for the CANSTAR SMSF Savings Accounts star ratings is awarded points for its comparative Pricing and for the array of positive Features attached to the account. These features include accessibility, conditions attached to interest payments and reporting tools offered on the product. Points are aggregated to achieve a Pricing score (P) and the Features score (F) To arrive at the total score CANSTAR applies a weight (w) against the Price and Features. This weight reflects the relative importance of costs or features in determining the best SMSF Savings account. This method can be summarised as:

TOTAL SCORE ( T ) = PRICING ( P ) + FEATURES SCORE ( F )

YOUR GUIDE TO PRODUCT EXCELLENCE

6 month historical average base rate 50%

Rates Historical rates over past 6 months

45%

6 month historical average total rate 50%

Transaction Fees

Pricing

Customer transaction scenario

85%

10%

6 Month Scenario Customer saving scenario

45%

- $100,000 Initial deposit - $5,000 withdrawal during month 12

Features 15%

Total Score The Pricing (P) plus Features (F) point scores are indexed and then totaled to provide the Total Index Score. Stars are awarded according to the Total Index Score.

Pricing Score CANSTAR accounts for both current and historical interest rates in the calculation of the PRICING (P) component of each product’s overall score. Current fees are also used in the calculation of Pricing. Pricing comprises of: 1)

Current Pricing – applying current fees to scenarios in SMSF saver accounts

2)

Historical Performance – compares the products’ base and total interest rate histories over the past 6 months. Interest rate tiers are taken into account by looking at the interest rate tiers below.

TABLE 1: SMSF saver account star ratings interest rate tier Tier 1

Tier 2

Tier 3

Interest rate tier weighting

50%

35%

15%

Interest tier amount

$10,000

$25,000

$100,000

3)

12 Month Scenario – Looks at the current promotion and bonus rate conditions. A balance of $100,000 is made and left for 12 months to accrue interest. A small withdrawal of $5,000 is made in the last month.

YOUR GUIDE TO PRODUCT EXCELLENCE

2

4)

Scenario Fee Analysis – The scenario analysis is conducted using CANSTAR’s unique transaction calculator, which incorporates essential transaction fees and charges, rebates and free transactions. The calculator interlinks the transaction behaviour of 500 hypothetical depositors with the following pricing structure of SMSF saver accounts:

TABLE 2: SMSF saver account scenario particulars Scenario Amount Average number of transactions (per month)

5

Average Balance

$25,000

Average Deposit

$0

For the SMSF Saver, the calculator looks at the total cost of account keeping fee and Internet transactions surround the above parameters. The product with the lowest cost receives the highest score in the scenario analysis.

Feature Score The FEATURES (F) component takes into account over 100 product features with weights given to each relevant area. Examples include minimum opening deposit, minimum withdrawal, ATM facilities TABLE 2: SMSF saver account feature weightings

Category Description

Feature Weighting

Account Facilities

25%

Specific Conditions

45%

Exemptions From Fees & Charges

5%

Account Design Options

5%

Mobile Banking and Security

20%

Total

100%

Each of the product features is allocated points that are awarded for positive deposit account traits such as no fees or greater flexibility. As features are relatively static, they are not measured over time.

How many products and financial institutions are analysed? CANSTAR analysed 141 SMSF saver accounts from 66 financial institutions in Australia.

Does CANSTAR rate all products available in the market? We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our ratings. However this process is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

How often are all the products reviewed for rating purposes? All ratings are fully recalculated every twelve months based on the latest features offered by each institution. All awards are recalculated every year based on the latest ratings. CANSTAR also monitors rate changes on an ongoing basis.

YOUR GUIDE TO PRODUCT EXCELLENCE

3

How are the stars awarded? The total score received for each profile ranks the products. The stars are then awarded based on the distribution of the scores with the objective to award the top 5-10% of products with the CANSTAR 5-star rating.



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The results are reflected in a consumer-friendly CANSTAR star rating concept, with five stars denoting outstanding value.

Does CANSTAR rate other product areas? CANSTAR researches, compares and rates the suite of banking and insurance products listed below. These star ratings use similar methodologies to guarantee quality, consistency and transparency. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.

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Account based pensions Agribusiness Business banking Business life insurance Car insurance Credit cards Deposit accounts Direct life insurance Health insurance Home & Contents

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Home loans Life Insurance Managed investments Margin lending Online share trading Package banking Personal loans Reward programs Superannuation Travel insurance

COPYRIGHT © CANSTAR Pty Ltd ABN 21 053 646 165, 2009. The recipient must not reproduce or transmit to third parties the whole or any part of this work, whether attributed to CANSTAR or not, unless with prior written permission from CANSTAR, which if provided, may be provided on conditions. DISCLAIMER To the extent that any CANSTAR data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR’s FSG for more information at www.canstar.com.au.

YOUR GUIDE TO PRODUCT EXCELLENCE

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