The biggest changes to super in a decade come into effect at the end of this week. While for many members this means seeing if they have any additional capacity to make super contributions, it doesn’t mean that you have to decide what shares or other growth assets to invest in now.
Super is an investment vehicle, not an investment asset per se. Make the contributions (and make sure they are banked by 30 June), but if you don’t know what assets to buy or don’t particularly like the share market at the moment (as in my case - see here), then put the money in cash or on a term deposit.
With that in mind, here is our latest review on the best cash and term deposit rates. And while it can be a hassle to change banks, if you want that extra 0.25%, be prepared to shop around because the rates vary considerably between the financial institutions. But don’t be put off by security concerns, because with the effective Commonwealth Government guarantee on deposits of $250,000 on a per client per financial institution basis, Bank A is as good as Bank B up to $250,000.