Banks are OK, but they’re not super

Banks are OK, but they’re not super

Posted: Friday 29 May, 2015

The research boffins tell me that ever so slowly we’re starting to consider super as ‘my money’ rather than something the boss drops into some account which shares our name, that you can’t remember opening up yourself.

It’s just as well that things are starting to change, because while we might not take much of an interest in our super, others are.

Aside from offering us home loans and credit cards, the big banks also run their own super funds- often under a different name- and are keen to find your super in their funds.

The banks are trying to get our super by coming at us directly. You know the drill, just as you’ve finished chatting about your home loan you get the “so, can I help you with your super?”

Most of us know how to respond to this- politely letting the bank rep know that our super is already in good hands thank you very much. Job done. Nothing left to do. Right?

Wrong. We’ve just released some advertising highlighting how it might not be enough just to tell the bank- politely- that you’re all good.

Banks are so keen to get their hands on your super they’re going behind our back and straight to our bosses to see whether they can get at it there.

With everyone so busy, most of us just go with the super fund that our boss has chosen- it’s called a default fund.

Most bosses know that the best default funds are those that perform well and are run to benefit their employees, but many might find an offer of a cheap business loan or insurance too good to refuse if only they switch to the bank’s own super fund for the workplace.

And this is how your super could end up in a bank-owned super fund even after you’ve let the bank know that you’re all good.

Short story is that if you can’t remember opening up your own super account, the best thing to do is to make sure your employer knows where you want your super to go. You can do this by filling in a simple form and handing it into work- you can find one here.

It’s the only sure-fire way of making sure your super stays in good hands.

Oh, and don’t forget that before you make any decisions about your super you should consider a fund’s PDS and your objectives, financial situation and needs.