Wrap term deposits (TDs) can be held with Macquarie Bank or ANZ. These term deposit issuers offer competitive interest rates over 1, 3, 6 and 12-month terms, the details of which can be found on the Adviser Online homepage under ‘Term Deposits’.
Wrap term deposits (TDs) can be held with Macquarie Bank or ANZ. These term deposit issuers offer competitive interest rates over 1, 3, 6 and 12-month terms, the details of which can be found on the Adviser Online homepage under ‘Term Deposits’.
Wrap Online has a minimum investment order limit for term deposits which has been set at $10,000.
| Entity type | Term deposit | ||
| ANZ | Macquarie Bank | ||
| Individual (including superannuation members) | Accepted No limit on aggregate investment (max per TD: $1,999,999) | Accepted No limit on aggregate investment (max per TD: $99,999,999) | |
| Joint accounts | |||
| SMSFs | |||
| Companies (including NFPs/Charities) | Accepted Aggregate investment with ANZ $1,999,999 | ||
| Trust | |||
| Partnerships | |||
In December 2021, APRA released guidance on Prudential Standard APS 210 and Prudential Practice Guide APG 210 dealing with liquidity. This guidance provided further clarity around the liquidity treatment of deposits made by Personal Investment Entities (PIEs). Term deposit providers across the industry have reviewed their definitions of PIE based on this guidance. As a result, our term deposit issuers are placing restrictions on how much can be invested by our clients in a term deposit. This will depend on the entity type and whether the term deposit issuer considers your client to be a PIE.
We’re reducing the maximum investment order limit of $1,999,999 for Wrap on-platform term deposits provided by ANZ. The limit applies to new investment orders as well as term deposits that are being rolled over on maturity (principal or principal and interest).
*Where you're unsure of your client's classification, assume PIE for ANZ.
Our platform will no longer allow you to place an investment order on ANZ term deposit for more than $1,999,999. If you have a non-PIE client who would like to invest $2 million or more in term deposits, you'll need to place more than one order.
If you invest an aggregate amount of $2 million or more in ANZ term deposits for your PIE clients, these term deposits may be cancelled without any financial compensation. Please make sure you’re considering existing term deposit investments for each term deposit provider before proceeding with any transactions.
Applications for Wrap term deposits close each business day at midnight with the investment being made the following business day. The timeline:
You can’t conduct in-specie asset transfers of term deposits between accounts. If you are conducting the following, your term deposit can be transferred:
You can view your client’s existing term deposit maturity elections in Adviser Online by following the instructions below:
You can update the maturity elections for Wrap term deposits until 9pm (Sydney time) one business day prior to the maturity date.
To change your client’s term deposit maturity elections in Adviser Online:
Users must have full transact authority to update term deposit maturity election details.
Notifications of any upcoming TD maturities are sent each Friday within Adviser Online. You will be able to view any TDs maturing in the next 2 weeks for any account that you have access to.
Please note that we no longer send email notifications.
Under ordinary circumstances, on maturity, the principal and/or interest is paid into the client’s cash account/hub on the day the funds are received from the issuer for investment accounts, and the following day for super and pension accounts. Where an election is made to rollover, an automatic application will be made into the next term deposit for the same term, from the same issuer and the amount specified1 (principal only or principal and interest). For investment accounts, the start date will generally be the next business day. For super and pension accounts, the start date will generally be two business days after maturity.
1. Investment order limits apply, refer to the Investment Order limits section of this Guide.
For investment accounts, the proceeds from the term deposit maturity are generally available on the afternoon of the business day after maturity. For super and pension accounts, the cash is generally available two days after maturity.
As term deposit applications are pooled and invested together, there is limited ability to obtain funds before maturity. You may request to break your term deposit, but you should be aware that this is subject to the term deposit issuer’s approval and that fees, notice periods, and interest reductions may apply.
You can request to break a term deposit by submitting the relevant form:
We process requests to break term deposits every Tuesday morning. We then submit these requests to the term deposit product issuer the following Thursday who will proceed with breaking the term deposit. The term deposit provider may take up to 31 days to confirm the break of the term deposit, subject their acceptance of your request.
You must submit your request to break a term deposit by Monday close of business (Sydney time) to be processed on the Tuesday in the same week. Please ensure that any term deposit maturity rollover instructions have been ceased before submitting the request.
If you have any feedback on this article or need additional support, please contact us via chat or email service@wrapinvest.com.au.