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  • Writer's pictureStrata Guardian

Recent FAQ from a Strata Manager



I met you at the conference and wanted to enquire about your service for the subject complex.

They have a TD with (Current Bank) approx. $25000 maturing 4/10. They will have approx. $60000 to invest at maturity.

I note on your brochure you charge a percentage to provide the service. Can you please provide more information on costs and why it would be better to use your service than say invest in (Current Bank) for 12 months which this week is offering 2.75% for 12 months and would likely be higher than that by October?

Kind Regards

(Strata Manager)


Hi (Strata Manager),

Great to hear from you and thanks for getting in touch.

Thanks for the information about (Strata Plan), and happy to run through the differences between Strata Term and (Current Bank).

Strata Term offers a simple way to gain wholesale access to the remaining Australian Deposit Taking institutions offering term deposits. Banks will often 'trim' their wholesale rate to cover the cost of advertising and customer service, which we have found to often be in the realm of 0.5% pa.

By getting wholesale access, we are often able to offer higher rates of return than going to the bank on your own!

Strata Term provides our clients with the leading deal, and once initially onboarded we can simply and easily place new term deposits with just an email confirmation.

Rollovers to another leading bank and rate is simple. Committees can take back to their owners the confidence that their funds are working as hard as they can in this high inflation environment.

Banks have rolling capital needs, meaning that the leading bank today may not be the best one in say October. We can also offer some help with the most 'bang for buck' term, particularly under 12-month terms. An example of the 'pig in the python' nature of term deposits is below:

For the above services, including managing the bank relationships and looking after the administration, we charge 0.2% pa. on all term deposits that we place. All deposit rates we quote are net of this fee, for clarity.

Different banks offer different rates depending on the amount invested. At the moment the best rate on $60,000 for 12 months is 3.45% pa. All banks offered through our service are covered by the Financial Claims Scheme.

Finally, particularly now, we are finding the market rates are moving pretty regularly. Feel free to be in touch when ready for an update on the best pricing, more than happy to help.

Strata Guardian is a corporate authorised representative of Strata Advice AFSL 528306.

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