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Connexus : Issue 40
Many nancial institutions have learned that cash recyclers are game changers. Investment bonds for long term savings As household savings rise, fnancial products and ser vices are being created to meet longer- ter m savings needs such as your children's education. Investment bonds are one option. Financial ser vices organisation KeyInvest says that the choice of investment options in its investment bond product helped secure members' savings during the global fnancial crisis. "For example, during tough market conditions members can have the security of switching funds into a term deposit option," says KeyInvest's national business development manager Andrew Meinel. "When market conditions improve they can switch back to, say, the Australian shares option." Investment bonds are a tax- paid investment with earnings taxed in the hands of the bond provider at 30 per cent so there is no personal tax liability for the bond owner, says Meinel. "After 10 years you can withdraw the proceeds free of tax. "Partial or full withdrawal is also available before 10 years. While you pay tax on the earnings of an early withdrawal, you receive a full 30 per cent tax offset to compensate for the tax already paid," he says. With marginal tax rates for most Australians set to increase to 32.5 per cent from July the internal tax rate of the bond also looks very attractive. For more information contact Andrew Meinel at KeyInvest on 1300 658 904. Investment bonds are a tax- paid investment with earnings taxed in the hands of the bond provider… so there is no personal tax liability for the bond owner. www.abacus.org.au 41 New solutions for cash management Controlling the cash in a fnancial institution's branch is always a challenge, notes technology company Arca, a manufacturer of cash handling devices. Most branches continue to operate today in much the same way that they have for hundreds of years. Many branch processes have been automated but cash procedures, such as dual control, drawer limits and trips to the main vault are still required in order to keep cash secure, according to an Arca white paper, Controlling cash operations in the branch environment: how to increase revenue while decreasing costs. These, often cumbersome, policies can be streamlined through the use of cash recycling technology, the white paper says. "The need to secure and control cash even dictates the way customers engage with the frontline staff of the branch. “Many fnancial institutions have learned that cash recyclers are game changers. The technology not only improves teller productivity, but it also allows you to lower cash inventories, engage customers in dynamic new ways, free head tellers for higher value activities and reduce costs associated with the entire supply chain of cash within the branch network." According to the white paper, cash recyclers can: • free up six hours of labour per day for tellers and head teller, • create focused customer engagements during each transaction and double cross selling results, • lower cash inventory levels and improve security in branches. US-based Arca is a business partner of cash recycling frm CTS Cashpro. Microelectronic Solutions is CTS Cashpro's distributor for Australia and New Zealand. For more information email John Illy at firstname.lastname@example.org