La Trobe Financial has announced the launch of its new 90 Day Notice Account, an investment product that allows for short-medium duration investments to be made at an initial variable interest rate of 3.1 per cent, paid monthly.
The account is intended to provide investors with a “stable source of monthly income” and make funds accessible “generally with 90 days’ notice”.
“For the past several years, we have been aware of the challenges that investors face in generating a reasonable income in a hyper-low rate environment. The pain is particularly acute for investors who remember paying record-high interest rates on their home loans, only to have savings rates plunge as they enter into retirement,” La Trobe’s chief investment officer, Chris Andrews, said.
“As we have stated repeatedly over the last five years, we believe that this current low interest rate environment will persist for years to come and it is critical that investors take steps to identify alternative income sources.”
Mr Andrews continued: “Our 67-year track record across many business cycles has taught us that a return of capital is just as critical as a return on capital; we have taken that lesson very seriously in designing this 90 Day Term Account.”
La Trobe, which has a $3.5 billion credit fund, said the new product sits between its 48 Hour and 12 Month Term accounts, at rates of 2.6 per cent and 5.2 per cent, respectively.
The non-bank lender, which is 80 per cent owned by asset management firm Blackstone, currently has more than $8 billion in assets under management in Australia.