More information
The Earnr Account is a flexible investment option managed by Earnr Australia, available inside RentPay.
It's designed specifically for everyday consumers to deliver returns above the cash rate, with built-in features to preserve capital.
Returns are generated from the fund's institutional deposits with major Australian banks and secured income assets. Assets are held on trust by an independent custodian.
Please read the PDS for more details on the Earnr Account's features, benefits and risks.
Earnr Account assets are held on trust by Sandhurst Trustees, an independent custodian and subsidiary of Bendigo and Adelaide Bank, separate from Earnr Australia and RentPay.
Earnr Accounts have three levels of cover: two layers of supporting capital provided by the Earnr Group, plus the Priority Income Entitlement. These measures give customer accounts priority over capital, as well as interest payments.
Over the past five years, every $1 in an Earnr Account has been backed by $2 in cash and secured property, on average. This is measured monthly through a Security Coverage Ratio.
You can read more about the layers of cover in the PDS. These measures are designed to preserve capital, but capital and returns are not guaranteed.
Adding and withdrawing funds
You can add funds at any time, and you'll start earning interest on the day your funds arrive.
You can request withdrawals at any time. Requests received before 2:30pm Sydney time on a business day are processed that day. Otherwise, they're processed the next business day. Funds will generally arrive on the day they're processed but can take up to two business days to reach the destination account or be delayed in accordance with the PDS.
Interest rates and earnings
The Earnr Account offers variable tiered rates, meaning a different rate applies to each portion of your balance. Current rates and tiers are shown in the RentPay app.
Interest is calculated daily on your closing balance, accrues through the month, and is paid into your account on the last day of the month.
You can see interest accrued in the current month and total interest paid previously in the app.
Example of how interest is calculated:
Interest accrued each day is calculated on each portion of your balance at the applicable rate, divided by 365. The amounts are added together to calculate your daily interest.
Worked example (illustrative):
$60,000 closing balance
Rate on first $50,000: 6.20% p.a.
Rate above $50,000: 4.00% p.a.
($50,000 × 6.20% ÷ 365) + ($10,000 × 4.00% ÷ 365) = interest accrued for that day.
Two statements are available for your Earnr Account in the RentPay app.
Monthly statements: opening balance, transactions, interest paid and closing balance for the month.
Annual statements: issued after 30 June, showing end of financial year balance, interest paid during the financial year, and any tax withheld for the financial year.
The Earnr Account is free to open and use, with no account keeping fees, transfer fees or exit fees.
Rates shown are after the deduction of all applicable fees and costs, including the management fee of 0.2% p.a. (inclusive of GST). Please see the PDS for more information.
Interest paid into your Earnr Account is generally taxable. Your annual statement will show the interest paid to you for that year.
If you don't provide a valid tax file number or exemption, part of your interest may be withheld and paid to the ATO as withholding tax.
An annual tax statement is available after 30 June. For advice about your own circumstances, speak to your tax adviser.
