Best Investment Account

Posted April 2nd, 2010 and last modified August 21st, 2014

Choosing the best investment account can be daunting because most investments will require you to take some level of risk. However, when you are investing with the bank, you can reduce that risk to almost nothing by using a term deposit or at call high interest savings account. 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.

The Best Fixed Investment Account

A fixed investment account such as a term deposit or certificate of deposit actually gives you a lot of options, despite the name. 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.

Savings Accounts Comparison

Rates last updated September 24th, 2014
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
ING DIRECT Savings Maximiser
ING DIRECT Savings Maximiser
A high interest savings account with no account keeping fees. 2.75% 2.75% $0 $0 / $0 OpenMore
HSBC Serious Saver
HSBC Serious Saver
Earn high interest with HSBC Serious Saver Account 4.00% 2.70% 1.30% $0 $0 / $0 OpenMore
Bankwest Hero Saver
Bankwest Hero Saver
Earn a high variable rate of 4.00% p.a. when you make a minimum monthly deposit of $200 and don't withdraw. 4.00% 0.01% $0 / $0 OpenMore
Bankwest TeleNet Saver
Bankwest TeleNet Saver
No Fees. No minimum monthly deposit. For balances up to 5000000. Earn a high 3.90% p.a. variable rate for 4 months. 3.90% 2.50% 1.40% $0 $0 / $1 OpenMore
RaboDirect High Interest Savings Account
RaboDirect High Interest Savings Account
Enjoy a competitive variable rate on every dollar with no fees and no minimum balance. 3.20% 3.20% $0 $0 / $0 OpenMore
ANZ Online Saver
ANZ Online Saver
A great savings account from one of most trusted banks in Australia. 3.80% 2.50% 1.30% $0 $0 / $0 OpenMore
RaboDirect Premium Saver
RaboDirect Premium Saver
Earn the maximum variable rate of 3.85% p.a. variable rate when you make a minimum monthly deposit of $200 3.85% 1.90% 1.95% $0 $0 / $0 OpenMore
St.George Maxi Saver
St.George Maxi Saver
One of the most popular high interest savings accounts on the market. 3.95% 2.25% 1.70% $0 $1 / $1 OpenMore
Bank of Melbourne Maxi Saver
Bank of Melbourne Maxi Saver
Apply for Bank of Melbourne Maxi Saver Account and save faster with no monthly account keeping fee. 3.95% 2.40% 1.55% $0 $0 / $1 OpenMore
BankSA Maxi Saver
BankSA Maxi Saver
A high interest rate from BankSA with no monthly service fees 3.95% 2.50% 1.45% $0 $0 / $0 OpenMore
HSBC Flexi Saver Account
HSBC Flexi Saver Account
A variable interest rate of 3.50% p.a. on your balance when you make a minimum monthly deposit of $300. 3.50% 2.50% 1.00% $0 $0 / $0 OpenMore
Easy Street Bonus Saver Account
Easy Street Bonus Saver Account
Enjoy fees and a great bonus rate from Easy Street. 3.93% 0.01% 3.92% $0 $0 / $0 OpenMore
RaboDirect Notice Saver 90 ($1 - $250,000)
RaboDirect Notice Saver 90 ($1 - $250,000)
A 3 month variable rate offer for balances up to $250k. 4.00% 4.00% 0.00% $0 $1 / $0 OpenMore
Westpac eSaver
Westpac eSaver
Earn 3.82% p.a. variable rate for 3 months with no minimum balance and no monthly service fee. 3.82% 2.50% 1.32% $0 $0 / $0 OpenMore
Westpac Reward Saver
Westpac Reward Saver
Enjoy bonus interest each month if you make no withdrawals, and deposit at least $50. 3.71% 0.01% 3.70% $0 $0 / $0 OpenMore

The Best Account to Save for an Investment

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.

How to use an at call account for investments:

  • Know your investment needs. 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.

Fixed Investment Accounts Comparison

Rates last updated September 24th, 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
Bankwest Online Term Deposit
Bankwest Online Term Deposit
2.50% 3.40% 3.40% 3.50% 3.65% 3.80% 4.10% $1,000 OpenMore
RaboDirect Term Deposit
RaboDirect Term Deposit
3.40% 3.55% 3.60% 3.80% 3.90% 4.20% $1,000 OpenMore
St.George Term Deposit
St.George Term Deposit
2.70% 3.15% 3.15% 3.35% 3.40% 3.75% 4.15% $1,000 OpenMore
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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 September 24th, 2014
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
HSBC Serious Saver
HSBC Serious Saver
A high interest savings account offer with ongoing variable bonus every month you don't make a withdrawal. 4.00% 2.70% 1.30% $0 $0 / $0 OpenMore
Bankwest Hero Saver
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. 4.00% 0.01% $0 / $0 OpenMore
Bankwest TeleNet Saver
Bankwest TeleNet Saver
No Fees. No minimum monthly deposit. For balances up to $5,000,000. Earn a high 3.90% p.a. variable rate for 4 months. 3.90% 2.50% 1.40% $0 $0 / $1 OpenMore
RaboDirect High Interest Savings Account
RaboDirect High Interest Savings Account
A competitive ongoing rate for balances up to $250K, no minimum monthly deposit required and no fees. 3.20% 3.20% $0 $0 / $0 OpenMore
ING DIRECT Savings Maximiser
ING DIRECT Savings Maximiser
A high interest savings account with no account keeping fees. 2.75% 2.75% $0 $0 / $0 OpenMore
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