Challenger pitches term deposits to retirees

Challenger term deposits

Challenger has added term deposits pitched at the retiree market to its product suite after rebranding its recently acquired digital bank.

Investment management firm Challenger has expanded its suite of products for retirees with a range of term deposits being made available via the group’s in-house bank.

Challenger bank chief executive Mark Ellis said term deposits were well known among retirees and pre-retirees and fit well with the investment manager’s current range of products.

“They complement Challenger’s existing suite of annuity products and importantly the term deposits carry the government guarantee providing older Australians with more certainty when it comes to their retirement income,” Ellis said.

The term deposits will be available for accounts ranging from 31 days to five years through comparator websites, including Mozo and Canstar.

The introduction of term deposits follows the acquisition of MyLifeMyFinance in July 2021, which was an Australian-based customer savings and loans bank owned by the MyLifeMyMoney Superannuation Fund, and its recent rebranding under the Challenger name.

The company said since the acquisition it had been working to integrate the bank within the broader business in order to strengthen Challenger’s brand and capabilities.

Ellis said the transition had been a key milestone in achieving more savings and income products for a wider range of customers, in particular individuals in the retirement phase.

“We will further expand our distribution footprint via the broker channel, with Challenger’s term deposits launching on Australian Money Market in July,” he said.

As part of Challenger’s business strategy, it also plans to take more advantage of the firm’s expertise in origination and debt servicing in order to broaden the bank’s lending opportunities.

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