Guide to Wrap term deposits

1. Log in to Adviser Online
2. Navigate to Interest rates on the landing page
3. Select Wrap term deposits.

1. Log in to Adviser Online
2. Hover over Transacting and select Portfolio transacting
3. Search for the account using the account name or number
4. Click on the blue New Transaction button, and select Buy new Term Deposit
5. Select the term deposit you require from the drop-down list
6. Enter the amount of the term deposit and click on Continue
7. Select the term deposit, complete all required details and submit and authorise the order using your Access Code and password.

Applications for Wrap term deposits close each business day at midnight with the investment being made the following business day. The timeline:

• Day 1: Order submitted and authorised by midnight (client receives today’s rate)
• Day 2: Cash debited from cash account, order sent for processing (this is the start date of the term deposit)
• Day 3 (Day 4 for super/pension accounts): Term deposit issuer confirms order and applies Day 1 interest rate. Term deposit visible in online reports.

You can’t conduct in-specie asset transfers of term deposits between accounts. If your client is in a change of phase (e.g., from your super to pension account), their term deposit can be transferred only if the term deposit has more than 10 business days left before maturity.

The name of each term deposit indicates its issuer, term, maturity date and interest rate.

The order will display in Work In Progress the following day as a pending application order. The interest rate and maturity date displayed will be automatically updated on a daily basis.

Due to the nature of the investment type, the following Wrap features are not available for term deposits:

1. automatic cash management
2. automatic rebalancing
3. dollar cost averaging
4. pension draw-downs.

The Financial Claims Scheme applies per account holder per ADI up to a cap of $250,000. When you invest in a term deposit via the Wrap platform your funds are pooled with other investors and held in custody. As a result, you don’t directly become an account holder in the product and will only have a pro-rata entitlement to the cap amount of $250,000. This entitlement ranks in proportion with all other investors deposits. This means that investors do not receive full protection under the Financial Claims Scheme.

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 and NAB. The limit applies to new investment orders. This change extends to new term deposits, as well as term deposits that are being rolled over on maturity.

Our platform will no longer allow you to place an investment order on ANZ or NAB term deposits 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 or NAB 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.

Yes. Wrap Online has a minimum investment order limit for term deposits which has been set at $10,000.

This can take up to three business days for investment accounts and four business days for super and pension accounts. For example, if the application was made on a Monday, the term deposit would appear in online reports from the following Wednesday or Thursday. Please refer to the ‘term deposit application timeline’ for further information about this process.

The name of the term deposit will reflect the maturity date. An adviser alert is also sent two weeks before a term deposit matures that details the investments and the clients impacted.

You can update the maturity instructions for Wrap term deposits until 9pm (Sydney time) one business day prior to the maturity date.

To amend the maturity details for your client's term deposit:

1. Log in to Adviser Online 
2. Under the Clients tab in the side navigation, select Accounts and search for your client’s account 
3. Select Account details 
4. Under the Features section, expand the Term deposit maturity elections accordion and click on the Update term deposit maturity elections button. This will launch the Term deposit maturity elections wizard. 
5. Select a new maturity election for the term deposit 
6. Select Confirm to review the term deposit maturity election updates and disclaimers. 
7. Select Submit. 

Please note: For rollovers, the elected maturity instructions will continue to apply unless modified online (by 9pm Sydney time one business day before the maturity date).

Users must have full transact authority to update TD 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 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 roll over, an automatic application will be made into the next term deposit for the same term, from the same issuer and the amount specified (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.

Under ordinary circumstances, clients will receive the interest rate published on the maturity date for investment accounts. Super and pension accounts will receive the interest rate that is published on the business day after the maturity date. This difference is due to the different processing times described above.

For investment accounts, the cash is 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.

No. As the election is made for the account, when the term deposit is moved to a new account, the default election of cash-out will apply. The election can be updated online once the term deposit is in the new account.

Where a rollover of a term deposit is successfully executed, no transaction fees will apply to the purchase of the new term deposit or the maturity of the existing term deposit.

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.

Each term deposit issuer generally has its own costs associated with breaking a term deposit early. Please refer to the product issuer’s offer document for further information on break fees.

You can request to break a term deposit by submitting a request form. Please speak to us using live chat in Adviser Online to request a copy of the relevant form.

We process requests to break term deposits every Tuesday morning. We then submit the requests to the term deposit product issuer the following Thursday, who will proceed with breaking the term deposit. 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.

Margin lenders don’t offer value for term deposits on Wrap.