LENGTH: 546 words

HEADLINE: Savings and Loans Credit Union Advertising Feature; A;
partner to rely on

BODY:
WHILE the intrinsic benefits of credit union membership may be a good

reason to join, Savings and Loans Credit Union can also act as a

member's best partner when it comes to investment.

Savings and Loans Credit Union product manager, deposits, Mrs Charisse

Thompson, pointed out there were options available to suit just about

any investment need.

She said the cash management account was ideal for members with

$10,000 or more to invest, and was designed to suit members who needed

their funds at call while still receiving an attractive interest rate. The rates currently offered start at 2 per cent per annum and rise to

4.35 per cent per annum.

Fixed-term deposit accounts are offered at various terms with a

minimum of three months and up to five years, with an option of

interest paid directly to a savings account.

Alternatively, for terms up to 12 months, interest can be re-invested

in the fixed deposit account or a cheque can be drawn to disburse

interest earned.

Mrs Thompson said the high-riser investment account had proved a

popular option with members who appreciated being rewarded for

sticking to a savings investment plan.

"With this plan, interest rates increase with each quarter that the

member keeps their money invested, starting at 3 per cent per annum

for the first quarter and capping at 6 per cent per annum in the last

quarter for up to 12 months," she said.

"Also, the money is not locked away, being accessible after three

months with a $1000 minimum withdrawal. Neither are there fees for

account-keeping or withdrawals."

The premium saver account also rewards members who place importance on

maintaining a savings plan with higher savings attracting a higher

interest rate.

"The incentive is that if you deposit at least $50 a month while not

making any withdrawals, Savings and Loans will double your interest

rate, starting at one per cent for amounts from $1 to $4999 and two

per cent for balances $5000 and over," Mrs Thompson said.

So a withdrawal-free account balance of $7000, where you have

deposited at least $50 for the month, would jump from earning 2 per

cent a year to earning 4 per cent a year.

Pensioners also are well catered for with a deeming account.

Mrs Thompson said pensioners had particular needs when investing their

money as interest earned was assessed as income when determining

pension entitlements.

"Anyone who is about to retire should seek advice on deeming

accounts," she said.

She said a recent comparison with another institution's deemed account

revealed to a member that they were better off by earning up to $470

more in interest in 12 months by choosing our deeming account. The

calculations were based on the Commonwealth Bank effective rate of

3.06 per cent on a balance of $31,000 with terms and conditions.

"The difference with our deeming account is that we pay interest on

the whole account balance, so $40,000 attracts 4.75 per cent on the

whole amount, unlike other institutions which pay interest only on

part balances of an account," Mrs Thompson said.

Interest on deemed accounts is paid monthly and automatically

re-invested into the member's account which can be drawn on at any

time.

LOAD-DATE: March 7, 2002