The risk that you may withdraw your funds early and incur a penalty. If you die before the end of the fixed term, your estate may receive less money than it would have if the annuity had been held for the full term. You can nominate a single beneficiary to continue to receive the regular payments until the end of the fixed term.

The risk that a change in Government policies and laws in the future may require us to make changes to the product or its terms and conditions.

There is a risk that the purchasing power of your regular payments may reduce over time as a result of inflation because the Fixed Term Direct annuity doesn’t offer indexation.

This is the risk that we become unable to meet our commitments to you. However, we are subject to detailed legislative and regulatory requirements designed to ensure that this does not occur. Challenger Life is regulated under the Life Act and the prudential standards made under it, which prescribe minimum capital and solvency requirements for Challenger Life as well as for the annuity business it writes. Challenger is regulated by the Australian Prudential Regulation Authority (APRA) who actively supervise Challenger’s compliance with these requirements, which are designed to ensure that we are able to meet our obligations to investors. For example, Challenger Life is required to hold at least enough capital to withstand a one in 200-year investment market shock event. APRA can require us at any time to change how we invest or tell us to invest more capital into the fund. Even so, unforeseen, and extreme circumstances that might impact our ability to make payments to you can never be completely ruled out.

Fixed Term Annuities: Guaranteed Returns for Your Selected Term

Fixed Term Direct

Challenger’s Guaranteed Annuity (Fixed Term Direct) offers guaranteed regular income for a fixed investment term you choose of 1 to 5 years. Applying is easy and can be done in under 15 minutes.

Guaranteed returns for a selected term

Challenger’s Guaranteed Annuity (Fixed Term Direct) is a secure investment offered by a life insurance company, that operates in a similar way to a term deposit¹.

Payments are guaranteed by Challenger regardless of how investment markets perform.

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¹Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.

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Features

Fixed return

Know what you’re earning. Enjoy the certainty that your income won’t be impacted by the performance of the share market.

Nominate beneficiaries

Keep control over your estate planning by nominating one or more beneficiaries.

Choice of terms and payments

Select from a range of terms and income payment options all delivering guaranteed payments for the term you choose.

Competitive rates

View our competitive rates below.

View rates

No fees

There are no product fees or charges payable to Challenger.

Access your money early if you need it

If your circumstances change, you can access a lump sum amount early. Bear in mind that a Challenger fixed term annuity is designed to be held until the end of the term, so a penalty will apply if you decide to withdraw early.

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Fast, online application option available

If you’re ready to create a regular guaranteed income, you can apply online in under 15 minutes today.

Apply online

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How does it work?

You can apply online in under 15 minutes if you’re 18 years or older and are applying as an individual or jointly with another person.

Choose your investment amount
The minimum investment amount is $10,000 and you can only invest non-superannuation monies.
Choose your term
Choose a term of 1 to 5 years.
Choose your payment frequency
You’ll receive regular income payments. You can choose monthly payments or yearly payments for terms longer than one year. (Annualised payments are not available for one year terms).
Your original investment is returned at the end of the investment period
100% of the original investment you used to start your Fixed Term Direct annuity will be returned to you at the end of your investment period.

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“It’s easy and straightforward and not overwhelming at all. Applying online is better than I expected. Thank you!”
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“So easy provided you have the documents/ information ready as advised at the start of the application.”

Learn more

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Fixed term rates

Rates are updated every Monday. The rates displayed are current and subject to change. For a tailored payment quotation, go to apply now, contact your financial adviser or call us on 13 35 66.

Investment amount

Income payment frequency

Investment term1 year

Earning rate

Annual income payment-

Investment term2 years

Earning rate

Annual income payment-

Investment term3 years

Earning rate

Annual income payment-

Investment term4 years

Earning rate

Annual income payment-

Investment term5 years

Earning rate

Annual income payment-

Longer terms are available. Find out more.

The rate for a Challenger term annuity is fixed for the term of your investment. Choose from a term of one year up to 5 years, with a minimum investment of $10,000. Annualised payments are not available for one year terms.

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Need more options?

If you need more options, consider our comprehensive Fixed Term annuity which allows you to:

To invest superannuation monies
To invest for a term longer than 5 years
To invest as a Company or Trust
Have some of your original investment returned to you as part of your regular payments, rather than at the end of the fixed term, which could increase your regular income payments.

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Risks of investing

All investments carry some risk. We’ve listed the key risks that you should consider when deciding whether a fixed term annuity is right for you.

Withdrawal risk

Regulatory risk

Inflation risk

Counterparty risk

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Additional reading

Whats the difference between a term deposit and a term annuity?

View key differences between a fixed term annuity, a bank term deposit and other products/investments.

Retiree Asking questions and receiving help

Frequently asked questions

Find answers for questions we commonly get asked about our Fixed Term Direct annuity.

Read FAQ

Is a fixed term annuity right for you?

Here are a few points you could consider to determine if a fixed term annuity is right for you.

Download

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Useful documents and links

Below we have provided information that you should consider before you make a decision to purchase a financial product. We also recommend that you speak to your financial adviser.

Guaranteed Annuity (Fixed Term Direct) Product Disclosure Statement (PDS)

Guaranteed Annuity (Fixed Term Direct) Target Market Determination (TMD)

Fixed term annuities product flyer

Things to consider before withdrawing

How do we cover our promises?

Table of Contents

Fixed Term Direct

Guaranteed returns for a selected term

1Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.

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Features

Fixed return

Nominate beneficiaries

Choice of terms and payments

Competitive rates

No fees

Access your money early if you need it

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Fast, online application option available

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How does it work?

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Fixed term rates

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Need more options?

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Risks of investing

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Additional reading

Whats the difference between a term deposit and a term annuity?

Frequently asked questions

Is a fixed term annuity right for you?

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Useful documents and links

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Table of Contents

Fixed Term Direct

Guaranteed returns for a selected term

1Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.

Fixed return

Nominate beneficiaries

Choice of terms and payments

Competitive rates

No fees

Access your money early if you need it

Fast, online application option available

How does it work?

Fixed term rates

Need more options?

Whats the difference between a term deposit and a term annuity?

Frequently asked questions

Is a fixed term annuity right for you?

¹Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.

¹Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.