BT Financial Group is hoping its latest product, which allows credit card points to translate into superannuation savings, will encourage Australian workers to take greater ownership of their super.
The new product, BT Super for Life, allows users of the Westpac Altitude credit card to transfer reward points to either their own, their spouse’s or children’s BT Super savings account.
BT chief executive Rob Coombe said the new product was the financial institution’s attempt to stem the chronic lack of ownership Australians take over their super.
“The amount of money in the Australian superannuation system also exceeds the amount of money on deposit with retail banks plus the total amount of bank lending to households, including mortgages and credit cards,” Coombe said.
“Super is bigger than the entire banking system, both assets and liabilities. It’s a truly large sum of money.
“But despite all this phenomenal money in super, the vast majority of Australians remain chronically out of touch and quite disinterested in their super.”
BT Super for Life members are given the option of three super accounts: savings, transition to retirement and retirement.
All accounts carry a low management fee of 0.99 per cent and a flat monthly administration fee of $5, although other transaction costs may apply.
The product also offers two investment options.
Customers can either specify an investment mix by making a personal choice from the investment options BT offers or they can manage the account by changing the investment mix based on their age group’s retirement needs.
BT Super for Life also offers a number of life insurance options.
BT Financial Group senior superannuation manager Patrick Clarke said the costs associated with the new product were competitive with existing industry and retail super funds.
Clarke said the minimum conversion of credit card reward points into super was 5000.
He said 1000 points equated to $5. BT Super for Life is one of the first joint collaborations between BT and its parent company Westpac.
