La Trobe Financial

[Toula92122]

I know nothing about this organisation but have been getting emails offering Qantas bonus points for investing in a term deposit. However it is the interest rate that caught my eye - 4.85% - though I do note this is variable. In the current environment how do they achieve such a return? As a recent returnee to Oz I am not across all the financial institutions so wonder if anyone has any input on this organisation.

https://www.latrobefinancial.com.au/Qantas

 

[daft009]

short term high interest rate loans is one of the things they do.

example: from what I've heard builders might use them to get some money for a project shortfall for 2-3months at 10-15% interest or similar

 

[RB]

I know nothing about this organisation but have been getting emails offering Qantas bonus points for investing in a term deposit. However it is the interest rate that caught my eye - 4.85% - though I do note this is variable. In the current environment how do they achieve such a return? As a recent returnee to Oz I am not across all the financial institutions so wonder if anyone has any input on this organisation.

https://www.latrobefinancial.com.au/Qantas

I think the key here is that it is not a "term deposit" in the traditional sense. By my reading the rate of return is not locked in, (reviewed monthly) and does not carry any Aust Govt Deposit Guarantee that the traditional banks do (certain limits). La Trobe is not regulated by APRA so you need to be aware of risk. It may be all fine but it is a totally different proposition to a traditional term deposit from a big 4 bank- Your own risk profile will decide if it should be in your allocation.

Financial Claims Scheme | APRA