ANZ taps super deposits

ANZ is hoping to tap a new source of retail deposits with the launch of a cash management account that sits within a superannuation fund.  A superannuation platform provider, Russell Investment Group, yesterday launched an enhancement to its Russell Private Active Pension fund with the addition of ANZ's Prime Cash Management Account.

The CMA option is designed to provide fund members with easy access to their pension drawdowns.

The option puts bank account functionality into a superannuation account. Withdrawals can be made by ATM, internet transfer, BPay, direct debit, eftpos and at branches.

The account comes with an ATM access card and can be linked to an ANZ transaction account.

Transactions are fee-free, in line with the bank's policy of offering free transaction accounts for the over 60s.

It is common for super fund members with allocated pensions or other income options to draw down pension payments in lump sums on a periodic basis and put the money into a cash account until it is needed.

The appeal of the Russell offering is that the ANZ CMA sits inside the super fund, so that interest is tax free for anyone over 60. ANZ is offering 6.25 per cent at call.

ANZ managing director of investment and insurance products Geoff Cohen said the bank had a non-exclusive deal with Russell and was looking at partnerships with other superannuation groups.

A big plus for ANZ is that the CMA deposits sit on the bank's balance sheet and are treated as retail deposits - a source of funding that is in high demand right now.

ANZ head of savings and investment products Mandy Simpson said the bank launched a version of the product, without all the features of the Russell offering, on an ING Australia superannuation platform 12 months ago.

Simpson said growth in account numbers and funds flow was slow initially but has picked up as fund members and their planners have become familiar with the idea.