Best Investment Account

Rates and Fees verified correct on December 18th, 2014

The best investment account for your situation can help minimise the risk associated with your investment strategy.

You can use a term deposit investment account to grow your funds and have them guaranteed to grow, or you can use a high interest savings account to grow a savings balance before investing it in a term deposit where a larger balance will ensure you larger returns.

A fixed investment account such as a term deposit or Certificate of deposit actually gives you a lot of options. Not until you have chosen your investment amount, your investment term and the frequency of your interest return payments is your investment account fixed. Other features of a fixed term deposit account include:

  • A guaranteed return. Where else can you find an investment option which not only guarantees you a secure investment, but also guarantees your return from the first day your investment begins? Because you are fixing your term deposit funds, you are also earning a fixed rate, so your return can be calculated at the start of your term and you'll know exactly how much you will earn.
  • Your investment is left to grow. Not only do you not need to manage your investment, there is no chance that you will be tempted to spend your investment amount on an impulse buy or a frivolous purchase. Instead, your hard earned and hard saved funds are left to grow and earn interest daily, until your investment matures.
  • Choose a term for your investment which matches your goals and lifestyle. Before you lock in your savings to a term deposit account, make sure that the term you have chosen will meet your investment and financial needs now, and at maturity. For example, if you are looking for an investment opportunity to grow your savings in anticipation of a growing family, then consider whether you will be better off accessing those funds sooner to spend on your kids, or further down the track when more interest will have been earned.

Compare term deposits

Rates last updated December 18th, 2014
3 Months p.a. 4 Months p.a. 6 Months p.a. 12 Months p.a. 24 Months p.a. 36 Months p.a. 60 Months p.a. Min Deposit
ME Bank Term Deposit
ME Bank Term Deposit
3.65% 3.30% 3.30% 3.65% 3.75% 3.80% 4.15% $1,000 Open More
ING DIRECT Term Deposit
ING DIRECT Term Deposit
3.20% 3.20% 3.50% 3.50% 3.80% $10,000 Open More
Westpac Term Deposit
Westpac Term Deposit
2.50% 2.90% 3.00% 3.20% 3.40% 3.70% 4.15% $5,000 Open More
St.George Term Deposit
St.George Term Deposit
2.50% 3.00% 3.05% 3.30% 3.40% 3.70% 4.15% $1,000 Open More
Bank of Melbourne Term Deposit Account
Bank of Melbourne Term Deposit Account
2.50% 3.00% 3.05% 3.30% 3.40% 3.70% 4.15% $1,000 Open More
BankSA Term Deposit
BankSA Term Deposit
2.50% 3.00% 3.05% 3.30% 3.40% 3.70% 4.15% $1,000 Open More

Considerations around the best investment account for your needs

Some term deposit investment accounts will require a minimum investment amount, while others will offer a higher interest rate on a larger investment. Regardless, the more you invest, the more interest you will earn so you want to grow your savings as much as possible before you move them to a term deposit account, and you can use an at call high interest account to help you.

  • Have a strategy. This will help you determine how much to save, but also the type of savings account you choose. For example, if you are looking to invest in your first home, consider opening a First Home Saver Account as you will benefit from tax exemptions, and can qualify for government co-contributions towards your house deposit. Keep in mind that once you open a FHSA you can't access the funds for four years, but this gives you plenty of time to accumulate that deposit from regular contributions.
  • Set up sub-accounts for post-investment. When you move a portion of your savings to an investment account such as a term deposit, you want to make sure you don't need to access that investment as it can jeopardise your interest earnings. Therefore, as you save for your investment, also save for after you've made your investment too, but setting up sub-accounts in your high interest account to cover emergency expenses.
  • Make regular deposits and be rewarded. Since you are saving for a specific goal you will be able to create a budget and a savings plan to help you reach your desired investment amount. To make the most of your savings, choose an at call high interest account which will pay you bonus interest for regular deposits. In this way you are being rewarded for behaviours you are sticking to anyway, and you can reach your goal sooner through your own contributions, bonus interest payments and your increased compounding interest earnings.

For more information about the best fixed investment accounts, view our term deposit comparison table. Or, to find out how to save for your investment, view the best high interest at call savings accounts on offer here. Once you have chosen the best investment account for your needs, you can follow our secure links and start an online application right now.

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This page was last modified on 24 November 2014 at 16:39.

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Rates and fees mentioned in comments are correct at the time of publication.
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Top High Interest Savings Accounts*

All of these accounts are FREE to open and require no minimum deposit. They all have easy internet banking access with no transaction fees.

Rates last updated December 18th, 2014
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
ING DIRECT Savings Maximiser
Earn 4.00% p.a. when you open an Orange Everyday Account and deposit at least $1,000 into it each month from an external bank account.
4.00% 2.75% $0 $0 / $0 Open More
ME Bank Online Savings Account
Earn 4.10% p.a. for 4 months on balances up to $250,000 when linked to a ME Bank Transaction Account. Plus no monthly account keeping fees.
4.10% 2.75% 1.35% $0 $0 / $0 Open More
Bankwest Hero Saver
Earn 4.00% p.a. every month when you deposit $200 and make no withdrawals each month on balances up to $250,000. Available on balances up to $250k.
4.00% 0.01% $0 $0 / $0 Open More
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