Money Wizard Cash Management Service
Wizard Financial Services Group today the first non bank lender in Australia to enter the deposit market with the launch of the Money Wizard Cash Management Service.
Following the investment by PBL and ecorp to take a 50% shareholding in Wizard, Permanent Trustee Co. Ltd and Wizard have formed a strategic alliance to offer a cash management service.
The Money Wizard will offer a introductory variable rate – currently 4.36% – for the next three months. It will offer the same variable interest rate across all amounts (minimum initial investment of $5,000) with interest calculated daily and interest paid quarterly. There are no entry or exit fees and has a Management Expense Ratio of up to 1% of the account balance. Deposits can be made by cheque or using a deposit book. Cheques for third parties can be requested over the telephone. Access to funds is available by telephone quoting a pre-designated pin number with funds transferred to a nominated bank account. Minimum withdrawal amount is $1,000.
According to Wizard Managing Director, Mr Mark Bouris, ‘non-banks have been able to capture 15% of the mortgage market. There is no reason we cannot drive the same levels of competition through the investment industry over the next two to three years'.
Money Wizard will be investing in Permanent's At Call Fund that currently has over $250 million in funds under management.
With the financial services deposit gathering industry only recently being opened up we expect a number of other non bank players to enter this market. Specifically look for those businesses with strong distribution channels, positive brand recognition and a large existing client base. All this is great news for consumers as the increase in competition in the deposit industry will inevitably provide them with the same benefits seen in recent years in the home loan market. Better returns, products and service.