How much of my DIY Super transaction account cash returns are being extracted and what can I do about it?

Summary: On average, ~1-2% is being extracted as a hidden fee. If, during a year, you may average over $50,000 in the Cash Transaction Account the impact of an extra 1% fee is over $500/yr.

Solution: Find out the least-extracting funds and consider switching; if staying (for other reasons) in a high-extracting fund invest cash in a cash/fixed income ETF instead of leaving it in the Transaction Account; Allocate your cash quickly to suitable investments, don't just leave it sitting in the Transaction Account.

Terms: Cash drag, Margin extraction, Inflated fee for service, Float income.

Details:

Self-Directed / DIY / SMSF-lite / Wrap Super: sits between Industry Fund Super and SMSFs, where you can control investment allocation but the provider continues to handle all of the legal, tax, and audit responsibilities of a superannuation trustee.

Transaction Account Fees: I will use BT Super Invest as the DIY Super example. In the BT Super PDS it claims ~1.2% is the "transaction account fee the Administrator earns for managing the amount held in your transaction account. It is equal to the amount earned by the Administrator on the underlying investments that transaction account balances are invested in less the interest credited to your transaction account."



Fee Justification: It says the fee is earned for "managing the amount held in the transaction account." But the true expense is under 0.1% (a Macquarie Savings Account pays well over the RBA Cash Rate and charges zero).

Comparison Mar 2026:

BT Super Invest:

3.1%



Macquarie Savings Account

4.5%

= 1.4% more than BT Super Invest



3. AustralianSuper MemberDirect Cash Account


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