Security investments

Security investments provide flexibility, competitive returns and the ability to manage interest rate risk.

Security investments (also known as ‘negotiable certificates of deposit’ or ‘bills of exchange’ accepted or endorsed by Australian banks) are ‘discount securities’ because they are sold at a discount to their face value. The difference between the purchase price (amount invested) and the face value (amount at maturity) represents the interest earned.

Features

• A minimum investment amount of $100,000
• Terms from 30 to 180 days
• No account keeping fees (where applicable, normal Government fees will apply)
• The face value of the investment is paid on maturity

Benefits

• Competitive returns – receive rates available in the short-term money market
• Consistent returns – once you purchase your investment, the interest rate is fixed until maturity
• Flexibility – a fixed interest rate facility can extend the guaranteed rate for up to two years, with interest paid quarterly (forward sale) or at maturity (compound forward sale)
• Security – the accepting or endorsing bank has an ‘obligation to pay’ upon maturity. We will also hold the securities at your direction on a safe custody basis free of charge
• Enhance returns and manage risk – by attaching Flexi Bill Solutions to your investment

Fixed rate security investments

Fixed rate security investments are suitable if you want to invest for a longer term than is generally available in the securities or bank bill market. The minimum investment amount is $100,000. There are two types of fixed rate investments available:

• Forward sales – these are security investments that are rolled over quarterly at the same interest rate negotiated on the initial investment date. Interest is paid on each rollover. Terms of four months to five years are available
• Compound forward sales – these are similar to forward sales; however, interest is paid on maturity. Terms of four months to two years are available

• Important information. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances.
• All products mentioned on this web page are issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 59kb). View Product Disclosure Statements (PDSs) for Security Investments - Negotiable Certificates of Deposit (issued by a bank other than the Commonwealth Bank of Australia) (PDF 130kb), Security Investments - Negotiable Certificates of Deposit (issued by the Commonwealth Bank of Australia) (PDF 134kb) and Fixed Rate Security Investments (Forward Sales & Compound Forward Sales) (PDF 1mb) and consider them before making any decision about these products.
  If you have a complaint, the Bank’s dispute resolution process can be accessed on 13 2221
  
• View a Product Information Document (PID) for Security Investments - Bank Bills (PDF 129kb) for more information about this product.