20 Best Investments to Earn Interest in Australia

Welcome to our highest interest earning investments guide. This post looks at all the options from high interest savings accounts to term deposits and managed funds.

We cover secure investments like government and corporate bonds, and more adventurous options like ETFs, cryptocurrencies and peer to peer lending for all types of portfolios.

Returns, risks and strategies for long term growth. Whether you want stability or higher returns this guide will help you make informed investment decisions.

Growing Wealth with High Interest Savings Accounts

High interest savings accounts are a safe and easy way for Australians to grow their savings with rates often above 5% per annum. With minimal risk involved they have become the go to option in today’s economic climate.However many accounts require you to meet certain conditions to get the highest rates. Common conditions include minimum deposit, growing your balance or restricting withdrawals.

Rabobank provides has one of the highest introductory rates at 5.75% p.a. for 4 months. This applies to balances up to $250,000 then 4.40% p.a.

ING Savings Maximiser matches this rate but comes with conditions. You need to link transactions, deposit $1,000 per month and grow your balance to qualify.

Macquarie’s account is simpler. It has an ongoing rate of 5.50% p.a. with no conditions to meet. Good for those who don’t want too many restrictions.

For younger savers Bank of Queensland’s Future Saver is for 14 to 35 year olds. It’s 5.50% p.a. on balances up to $50,000. Eligibility is deposit $1,000 per month and 5 transactions.

Move Bank’s Growth Saver is another good option. It’s 5.50% p.a. on balances up to $25,000. To get this rate you only need to deposit $200 and not make any withdrawals.

The Australian Government’s Financial Claims Scheme guarantees deposits up to $250,000 per person per institution. This adds an extra layer of security to accounts especially with digital only banks like UBank. UBank has 5.10% p.a. and only requires a $200 monthly deposit.

Accounts like Australian Unity’s Freedom Saver are flexible. They’re 5.20% p.a. with fewer conditions good for those who want less restrictions.

High interest options like the Mutual Bank’s Internet Saver can go up to 6.00% p.a. but these are often tied to specific balances or promotional periods.

When comparing accounts don’t just look at the interest rate but also the conditions. Some accounts penalise withdrawals or require big monthly activity. Others cap high interest rates at specific balance thresholds.

Savers looking for maximum growth should work out how easily they can meet those conditions. And having funds accessible if needed is key.

Term Deposits for Guaranteed Growth

Term deposits are the most secure investment in Australia, fixed interest rates and guaranteed returns over a set term. They’re good for individuals.

Who want safety and stable returns over flexibility or immediate access to funds. By locking in funds for a set term, usually 1 month to 5 years.

You can get higher interest rates than a standard savings account. For example deposit $50,000 for 1 year at 4.55% p.a.

Would get you around $2,275 before tax. Longer terms give better returns so good for those with long term savings goals.

Commonwealth Bank has term deposits at 4.55% p.a. for 12 months. Customers depositing $100,000 can choose to receive $379.17 monthly, or upon maturity depending on their preference. This flexibility allows you to manage your cash flow and get reliable returns. 

Westpac has competitive rates up to 4.80% p.a. for a 2 year term. A $75,000 deposit for 2 years would grow to $81,200 including interest. Westpac also allows partial withdrawals in emergencies.

Penalties or reduced interest may apply. Judo Bank has rates up to 5.15% p.a. for terms 6 months to 3 years.

For example a $150,000 deposit for 3 years would get you a total return of $23,175. Good for individuals and business owners.

Looking for higher returns. AMP Bank has good mid term options with rates up to 4.90% p.a. for 2 year deposits. A $30,000 deposit for 2 years would get you $2,940.

AMP Bank combines reliability with competitive rates so it’s a popular choice among Australian investors. The Australian Government’s Financial Claims Scheme guarantees deposits.

Up to $250,000 per person per institution. This gives you peace of mind especially for deposits with smaller or digital-first banks. Before you choose a term deposit.

Compare rates, terms and conditions across institutions. For example some banks offer monthly interest payments that compound, others only pay lump sums at maturity.

A $200,000 deposit earning 5% p.a. with monthly compounding would get you more overall returns than annual payments. Term deposits are for funds you don’t need.

Short term. They’re good for those who want to grow wealth steadily without market exposure. For example deposit $20,000 for 1 year at 4.5% p.a. would get you a reliable interest income of $900 to cover small expenses. By researching and comparing you can find a term deposit that matches your goals. Their predictability, flexibility in payment intervals and government backed security makes them a trusted choice for Australians.

ETFs for Maximum Diversification

ETFs (Exchange-Traded Funds) are a simple and effective way for Australians to diversify their investment portfolios. These funds pool money from multiple investors to buy a range of assets.

Such as stocks, bonds or commodities and are listed on the Australian Securities Exchange (ASX). ETFs provide a steady income stream through dividends with annual returns ranging from 4% to 8%.

For example investing $50,000 in an ETF earning 6% p.a. would get you an annual income of $3,000 depending on the fund. Some ETFs focus on high yielding assets for immediate returns.

While others seek growth through capital gains over time. The SPDR S&P/ASX 200 Fund (STW) is a popular one, gives you exposure to the top 200 companies in Australia.

With an average yield of 4.5% p.a. a $40,000 investment would get you annual income of $1,800. Plus long term capital growth as the value of the underlying assets increases.

For higher income the Vanguard Australian Shares High Yield ETF (VHY) targets companies with above average dividend yields and gives you an annual return of around 6.1% p.a. $70,000 investment.

In this fund would get you annual dividend earnings of $4,270 making it a good option for income investors. Another option is the iShares Core S&P/ASX 200 ETF (IOZ).

Which tracks the ASX 200 index. This ETF has a yield of 4.6% p.a. so a $25,000 investment would get you annual income of $1,150.

With low fees to reduce the drag on returns. For those who want exposure to global markets the Vanguard MSCI Index International Shares ETF (VGS) gives you diversification outside of Australia.

Yield 3.6% p.a. a $30,000 investment would get you annual income of $1,080. Plus this ETF has potential for big capital growth so it’s a balanced option for long term growth.

Conservative investors may prefer the BetaShares Australian High Interest Cash ETF (AAA) which focuses on cash based investments and gives you returns of around 3% p.a. $100,000 investment.

In this ETF would get you $3,000 annually, security and liquidity without market volatility risks. Unlike traditional investments ETFs are highly liquid and can be bought or sold during trading hours.

Give you flexibility. For example an investor needing cash could liquidate a $10,000 ETF holding within a single trading session. However ETFs carry risks, market volatility and potential reduced returns during economic downturns. Before you invest you need to factor in management fees which can range from 0.05% to 0.50% per year.

For example an ETF with a 0.20% fee on a $50,000 investment would deduct $100 per year from your returns. ETFs are a good option for long term investors looking for low cost.

Diversified investment with regular income. Whether you want to build wealth or get regular dividends ETFs are a flexible and reliable option for Australians.

Strategic Investment Options with Expert Managed Funds

Managed funds allow Australians to pool their money with other investors and have professional fund managers look after it. These funds invest in shares, property or bonds and give you diversification and expert oversight.

Returns range from 4% to 7% p.a. depending on the fund. For example a $50,000 investment in a 5% return fund would get you $2,500 per year and a 7% return fund would get you $3,500.

Australian Ethical Investment Fund has returned 6.4% p.a. over 5 years. A $20,000 investment would grow to $27,200 perfect for those who want to invest sustainably and responsibly.

Magellan Global Fund has an estimated return of 5.2% p.a. investing in global equities with lower risk. A $100,000 investment would get you $5,200 per year ideal for income investors.

Perpetual Conservative Growth Fund has returned 4.5% p.a. investing in fixed interest and cash assets. A $30,000 investment would get you $1,350 per year perfect for those who want stability.

AMP Capital Wholesale Australian Shares Fund invests in Australian equities and has returned 7% p.a. over the past 10 years. A $75,000 investment would grow to $147,000 in 10 years.

Managed funds charge fees between 0.5% to 2% p.a. For example a 1.5% fee on a $50,000 investment would cost $750 per year and eat into your returns.

These funds are good for investors who want professional management and diversification without having to manage individual investments. But they still carry market risks.

Before you invest review the fund’s strategy, performance and risk profile. Align that with your financial goals and you’ll have a more secure and rewarding investment experience.

Earning Interest Through Government Bonds

Government bonds are one of the safest investments in Australia. They give you a secure way to earn interest with minimal risk and help fund public projects.

When you invest in government bonds you are essentially lending money to the government. In return you get regular interest payments and the return of your principal.

At maturity. For example a $10,000 investment in a bond with a 4.5% p.a. would get you $450 per year in interest and the full principal back at the bond’s maturity.

The Australian Government guarantees these bonds so they are a safe investment. They come in different types including Treasury bonds, Treasury indexed bonds and state government bonds.

Treasury bonds have a fixed interest rate so you know what you’ll get. Treasury indexed bonds adjust for inflation so your investment keeps pace with the cost of living.

Interest rates on government bonds are lower than those of higher risk investments but their stability and safety make them good for conservative investors.

A $20,000 investment in a 4.2% p.a. bond would get you $840 per year. You can buy government bonds directly from the Australian Office of Financial Management (AOFM) or through a broker.

Bonds are available in $100 denominations so they’re accessible to many investors. Government bonds are good for conservative investors who want predictable returns.

They’re popular for retirement portfolios or income focused strategies, they give you steady income with minimal risk. While government bonds are low risk, interest rates and inflation can impact their value.

Long term investors should be aware that bond prices will move when interest rates rise. In summary government bonds give you stability and security. With government backing, predictable returns and minimal risk.

Higher Returns With Corporate Bonds

Corporate bonds offer higher yields than government bonds in Australia. While they carry more risk they offer better returns.

Good for investors who want higher yields. When you invest in corporate bonds you are lending money to a company in return for regular interest payments. For example a $10,000 investment in a corporate bond with 5% p.a. would get you $500 per year and the company would repay the principal at maturity. The interest rate is the company’s credit rating.

Big companies like BHP or Commonwealth Bank may offer bonds with lower interest rates around 3% to 4% p.a. A $50,000 investment in these bonds would get you $1,500.

To $2,000 per year. Riskier companies offer higher returns with interest rates from 6% to 8% p.a. For example a $20,000 investment in a 7% p.a. bond would get you $1,400 per year. Corporate bonds generally have fixed interest rates but some may have variable rates depending on market conditions. Bond terms can be.

From a few years to decades so you have flexibility as an investor. For example a 10 year bond paying 5% p.a. on a $30,000 investment would get you $1,500 per year.

Total $15,000 over the life of the bond. Corporate bonds can be bought through brokers or directly from companies. Many are listed on the ASX so they’re easy to buy.

And sell. Investors can buy and sell bonds based on market conditions. While corporate bonds can diversify your portfolio and give you steady income there’s a risk of default.

If the company gets into financial trouble. You should check the company’s credit rating before you invest. Despite the risks corporate bonds offer higher yields than government.

Bonds so they’re good for income focused investors. Returns are 4% to 8% p.a. depending on the issuer’s credit rating. Corporate bonds give you diversification.

And income in a balanced portfolio. Investors willing to take on moderate risk can get the higher returns while balancing risk with other investments.

Superannuation Funds for Regular Income

Superannuation funds are a key part of retirement planning in Australia, a tax effective way to save for the future. Contributions are made by employers, individuals.

And the government so you have a comfortable retirement nest egg. For example an employer contributing 10.5% of an employee’s annual salary of $80,000 would be $8,400.

Super funds are managed by professional investment managers who invest contributions across a range of assets. This diversification is to get better returns.

While managing risk. For example a $10,000 investment in a diversified super fund would get you an average of 7% p.a. and $700 per year.

Contributions to super funds are made before tax so there’s a tax benefit. This means you can invest more money upfront and build a bigger retirement fund.

If you make a voluntary contribution of $5,000 to your super fund before tax you can grow your retirement savings and reduce your taxable income for the year.

There are several types of super funds, retail, industry and self managed funds. Retail funds are offered by banks while industry funds are linked to specific industries.

Like healthcare or construction. For example an individual in the construction industry may benefit from a super fund that invests in growth assets to get better long term returns.

Employers must contribute at least 10.5% of an employee’s salary to their super fund. If an employee earns $100,000 per year their employer must contribute $10,500.

Voluntary contributions can also be made to top up your savings so you can save more for retirement. For example if you contribute.

An extra $2,000 to your super fund your total super balance would be $12,500 for the year. Superannuation funds offer many tax benefits such as tax free investment.

Within the fund. Earnings are taxed at lower rates so overall returns and growth are better. For example a $50,000 super balance would earn $3,500 per year.

If taxed at a lower rate than outside the super fund. Investment options within super funds range from conservative to high risk growth assets.

This gives you the flexibility to align your super with your risk tolerance and long term retirement goals. A conservative super fund would get 4% p.a. while a growth fund.

May get 8% p.a. so the difference in final balances will be significant. The Australian Government’s age pension is a safety net for those who haven’t saved enough.

But superannuation is the main source of retirement income for most Australians. For example an individual relying on the age pension may get $1,000 per fortnight.

But someone with $500,000 in super may get $30,000 per year from their super balance at 6% p.a. Regularly reviewing your super contributions and investment options can help you save more.

With long term growth and compounding returns super funds are the key to building wealth for a secure retirement. For example investing $10,000 in a super fund that gets 6% p.a. return could grow to $18,000 in 10 years, that’s the power of compounding.

Property as an Asset in Real Estate Investing

Real estate in Australia is a proven way to build wealth through rental income and capital growth. Residential properties, especially in cities like Sydney and Melbourne.

Have grown by an average of 7% per year so are attractive for long term investors. For example a $500,000 property in Sydney that grows 7% per year.

Would increase in value by $35,000 per year. Residential properties generally get 3-5% per year in rental income. For example a property worth $600,000 that gets 4% rental return.

Would get about $24,000 per year in rental income. This can vary depending on location, high demand suburbs get higher yields. For example a $1,000,000 investment.

In a top Melbourne suburb could get $50,000 per year in rental income at 5%. Commercial properties get higher rental yields 6-8%. For example a $2,000,000 commercial property.

With an 8% yield could get an annual rental income of $160,000. But demand can fluctuate especially during economic downturns so returns can be impacted. If the yield drops to 6%.

During tough times this would reduce annual income to $120,000. Industrial real estate, especially warehouses and distribution centers is popular. These properties get 5-7% returns.

For example a $1,500,000 warehouse getting 6% would get an annual return of $90,000. This sector has been driven by the growth of e-commerce as businesses need more.

Space for inventory and logistics. Real estate investment trusts (REITs) give you exposure to property without direct ownership. They usually get 5-7% per year depending on the portfolio’s performance.

For example a $100,000 investment in a diversified REIT would get $6,000 per year at 6% return. REITs are a good option if you want property exposure without the hassle.

Of direct management. Capital growth is a big advantage in real estate. Australian property has grown 6-8% per year but market corrections can happen.

A $400,000 property growing 7% per year would grow in value by $28,000 per year. But investors should be aware of market downturns that can reduce property values.

Leverage is used in real estate investing. By borrowing to buy properties investors can increase returns but this also increases the risk. For example using a $300,000.

Deposit to buy a $1,000,000 property could double the returns but it also means taking on a bigger loan. This can mean bigger profits.

During growth but also bigger losses if the market declines. Tax benefits like deductions for mortgage interest and maintenance costs can boost real estate returns.

Depreciation deductions increase tax savings. For example if a property has $5,000 in annual maintenance costs and $10,000 in depreciation these can be deducted from taxable income.

Reducing overall tax and increasing net returns. Real estate can give strong growth and stable income. But risks like market volatility, maintenance costs and property management.

Should be considered. With proper research and strategy real estate is a good option for wealth building in Australia.

Riding The Trends With Index Funds

Index funds are an easy and cheap way for Australian investors to get diversified exposure to the stock market. These funds track major indexes like the ASX 200.

The ASX 200 includes the top 200 companies listed on the Australian Securities Exchange. Management fees for index funds are usually 0.1% to 0.5% per year.

So they are a low cost option. By investing in index funds Australians can diversify their portfolio without picking individual stocks, lower investment costs and spread risk.

For example investing in the Vanguard Australian Shares Index Fund which tracks the ASX 200 means you’re exposed to over 200 companies. This reduces the risk of big losses.

Australian index funds have historically provided 7-10% average annual returns over the long term. For example if you invested $100,000 in an index fund that returns 8%.

In the first year your investment would grow by $8,000 excluding fees or taxes. Index funds are cheaper than actively managed funds.

Which charge management fees of 1% to 2% per year. The low turnover rate of index funds means the fund manager only buys or sells assets when the underlying index changes.

So less trading costs. Index funds can’t beat the market but they follow it closely, they give stable returns. The ASX 200 has provided average returns of around 9% p.a. over the last 10 years so index funds are good for steady growth. These are for investors who want a hands off approach.

Easy access to a diversified portfolio with minimal management. For long term growth they allow investors to passively grow their wealth while benefiting from the overall market growth.

Despite their benefits Index funds are not risk free. In economic downturns like the 2020 market crash index funds can lose big, just like the broader market.

In summary index funds are a low cost, passive way to invest with steady returns. They are good for long term investors who want to build a diversified portfolio with minimal maintenance.

High Risk, High Reward With Crypto Investing

Cryptocurrencies have become popular in Australia with assets like Bitcoin and Ethereum offering high returns. Bitcoin for example has returned up to 200%.

But it’s volatile. If you invested $10,000 in Bitcoin in a 200% return year you could turn that into $30,000.

Investing in cryptocurrencies is speculative with big price swings. Bitcoin and Ethereum have seen moves of over 300% both ways. Risks and opportunities.

For example Bitcoin has gone from $10,000 to over $30,000 in a few months. But it’s also fallen by similar percentages and caused big short term losses.

Cryptocurrencies are outside the control of central banks so are attractive to investors looking for alternatives to the traditional financial system. They are decentralized so are free from government regulations.

As Bitcoin is a peer to peer network it has attracted investors looking for a currency not affected by central banks monetary policies.

In Australia you can buy, sell and trade digital currencies on exchanges like CoinSpot and Binance. Fees range from 0.1% to 0.2%.

For example if you bought $10,000 worth of Bitcoin you might pay a fee of around $20 on a 0.2% fee exchange.

Diversification is one of the main benefits of cryptocurrency investing. Digital currencies don’t correlate with traditional assets like stocks and bonds so reduces portfolio risk.

For example while the stock market might decline Bitcoin could continue to rise and be a hedge against traditional market movements.

Cryptocurrencies are stored in wallets – hot wallets (online) or cold wallets (offline). Cold wallets are more secure but less convenient for quick transactions.

For example a cold wallet could be a USB device where you store your private keys, high level of protection against hackers but physical access required for transactions.

Hot wallets allow faster access to your funds but increase the risk of hacking.

While the returns are high cryptocurrency investing is risky. Market manipulation and regulatory uncertainty can cause big price swings and losses.

For example Bitcoin’s price fell over 50% in a few weeks after regulatory changes in China hit the market.

Cryptocurrency investing in Australia is subject to capital gains tax (CGT). Depending on your income tax bracket the CGT rate is 19% to 45% on profits.

If you make a profit of $20,000 from trading cryptocurrencies you could pay anywhere from $3,800 to $9,000 in tax depending on your income bracket.

Despite the risks Australian investors are seeing cryptocurrency as a long term growth opportunity. Digital currencies are seen as a future for decentralized finance and diversification.

Some investors believe Bitcoin will go to $100,000 in the long term driven by global adoption and institutional investment.

Small Steps for Big Gains with Micro-Investing Platforms

Micro-investing platforms like Raiz and Spaceship allow Australians to invest from $5. These platforms return 5% to 8% per annum.

They make it easy to get started with minimal funds. For example investing $100 a month in Raiz at 6% return would give you $72 in earnings.

These platforms allow you to invest in a diversified portfolio of stocks, bonds and other assets. Raiz helps you invest effortlessly by rounding up your everyday purchases.

Raiz invests the spare change from your purchases. For example if you spend $4.50 on a coffee Raiz would round it up to $5 and invest the 50c.

Raiz has a balanced portfolio of ETFs with an average return of 6-7% per year. If you invested $1,000 over 10 years at 6% return it would grow to around $1,600 with compounding.

Spaceship has a flexible approach with different portfolios like Growth or Index which can target higher returns up to 10%.

For example investing $100 a month in a Spaceship Growth portfolio would grow to $1,438 in one year. That’s more than the conservative options.

Micro-investing is perfect for beginners who want to start small and build wealth over time. Over time with compounding small investments add up and is a great long term strategy.

Raiz’s ease of use and low fees (just $3.50 per month) makes it accessible to small investors with as little as $200.

The fees are tiny and won’t eat into your returns. Micro-investing is low cost but returns won’t be big in the short term. To see bigger growth.

Investors should stay invested for at least 3-5 years to let the compounding work in their favour. Micro-investing platforms have fewer investment options than traditional funds.

Choose a portfolio that suits your risk tolerance and goals, whether you want growth or stability. Overall micro-investing is easy and hands off.

To get started building wealth. With small regular contributions over time these are a great entry point for new investors.

Real Assets for Real Gains with Commodities as Investments

Commodities like precious metals, energy resources and agricultural products are an alternative investment option for Australians. These investments diversify and help investors hedge against inflation and volatility.

Returns range from 5-15% per annum depending on the asset. Gold is a popular commodity investment in Australia especially during times of financial stress.

Historically gold has returned around 7-8% per annum making it a store of value. A $10,000 investment in gold 5 years ago would have grown to $14,000.

Oil and natural gas are other commodities but they are more volatile. Prices are influenced by geopolitical events, supply and demand and global economic shifts.

This can return 10-20% per year with higher risk. For example oil prices can go through the roof during geopolitical tensions and offer high returns.

But oil can also tank during global recessions. Agricultural commodities like wheat, coffee and sugar offer opportunities and are affected by weather patterns and crop yields.

These return 4-10% but can fluctuate with seasonal and climatic changes. A drought in a major wheat producing region can cause a price spike.

You can invest in commodities through various vehicles including commodity focused ETFs, futures contracts and direct investments. ETFs are a convenient option and give you exposure to multiple commodities.

For example the BetaShares Commodities Basket ETF tracks the performance of multiple commodities and has returned 6-8% over the past 5 years. Futures contracts allow you to buy or sell commodities at a future date.

These are more complex and carry higher risk but can return 15-20% in favourable market conditions. For example entering a natural gas futures contract could be very profitable if prices rise.

While commodities offer diversification their prices can be very volatile and influenced by external factors like supply disruptions, natural disasters or political events. This volatility can be very profitable.

But it can also be very loss making. A hurricane in the Gulf of Mexico could disrupt oil production and cause oil prices to go through the roof, a global trade war could cause prices to fall.

In summary commodities are an investment option for Australians looking to diversify their portfolio. But due to their volatility they may not be for everyone.

Research, understanding of market trends and proper risk management are key to successful commodity investing. A diversified approach will help balance the risks and rewards of commodity investing.

Consistent Income Through Dividend Stocks

Dividend paying stocks are a popular choice for Australian investors looking for income and capital growth. These stocks return 3-8% per annum.

The yield varies by sector and company performance. Investors who want reliable income streams and long term growth look to dividend paying stocks as part of their portfolio.

Blue chip companies like Commonwealth Bank, BHP Group and Telstra are known for their stable dividends. They return 4-6% per annum.

They are good for long term investors looking for stability. For those looking for higher returns Australian Real Estate Investment Trusts (REITs) are a good option.

REITs focus on income generating assets like commercial and residential properties. These stocks can return 7% per annum or more than the traditional blue chip stocks.

Dividends in Australia are usually paid quarterly but some sectors like utilities pay monthly. This regular income is very attractive to retirees who need cash flow.

Some investors can receive quarterly payments of up to $1,500 or more depending on the size of their investment. Another bonus for Australian investors is the franking credits.

Franking credits reduce the tax on dividends and can increase the effective dividend yield by up to 30%. For example if you receive $1,000 in dividends and the franking credits are 30%.

You’ll get $1,300 in income. If you’re looking for dividend growth stocks like CSL and Wesfarmers are good options with 5-10% dividend growth.

An investment in CSL will give you regular income and capital growth over time. But remember dividend stocks come with risks.

During economic downturns companies may cut or eliminate dividends. You need to check a company’s financials before investing as many companies cut dividends during the COVID-19 pandemic.

In short dividend stocks in Australia offer a wide range of options 3-8%. Higher returns in sectors like REITs.

These stocks will help you build wealth and generate steady income with the added bonus of tax efficient franking credits. Investors should check the sustainability of the dividend payments.

Growing Returns with Sustainable Options

Sustainable investing in Australia focuses on companies that consider environmental, social and governance (ESG) factors. These investments are for long term growth 5-7% per annum.

For example a $10,000 investment could return $500-$700 per annum depending on the sector. Renewable energy is a big area of sustainable investing.

Companies in solar, wind and hydro power are growing 10-15% per annum. A $10,000 investment in this sector could return $1,000-$1,500 per annum.

As global demand for clean energy increases green bonds fund projects like renewable energy infrastructure and return 2-4% per annum. A $10,000 investment could return $200-$400.

Australian ETFs and sustainable funds add ESG compliant companies to your portfolio. These funds return 5-8% per annum or $500-$800 per $10,000 invested.

They invest in companies that practice ethical and sustainable business. Superannuation funds in Australia now offer ethical options that return 4-6% per annum or $400-$600.

These portfolios address climate change and social responsibility. Companies with good ESG practices will give you steady growth and lower long term risk and return 6-9%.

For a $10,000 investment returns are $600-$900 per annum. But sustainable investing is not risk free and you should do your research before committing to ESG focused assets.

Despite the challenges sustainable investing gives you the opportunity to earn steady returns while doing good.

Risk and Stability in Hybrid Securities

Hybrid securities in Australia combine debt and equity features and give you a balanced risk reward profile. These instruments return 4-6% per annum or $400-$600 per $10,000 invested.

Examples are convertible notes and preference shares which pay fixed interest or dividends. They may convert into shares and give you equity growth alongside regular income.

Hybrid securities often return more than traditional bonds 5-7%. A $10,000 investment could return $500-$700 per annum with the potential for capital growth.

These instruments allow companies to raise funds without diluting shareholder value. Investors get steady income and participate in growth as some hybrids convert into shares at favourable terms.

But hybrid securities are riskier than traditional bonds. They are subordinated so in a liquidation scenario payouts come after senior debt holders so are riskier than bonds.

Careful consideration of terms like interest rates, conversion conditions and maturity dates is important. This will help you determine if the securities fit your portfolio goals and risk profile.

Australian companies like ANZ, Westpac and Telstra issue hybrid securities to fund their operations. Many of these are listed on the ASX so are available to retail investors.

Hybrid securities are for investors looking for higher yields than bonds with returns of 5-8%. A $10,000 investment could return $500-$800 per annum but you need to understand the risks.

Overall hybrid securities give you a middle ground between stocks and bonds. With research they can add to a diversified portfolio and give you income and growth.

Peer to Peer Lending for Direct Investment with High Returns

Peer to peer (P2P) lending allows Australians to lend money directly to borrowers through online platforms bypassing the banks. Interest rates are 5-15% per annum.

A $10,000 investment could return $500-$1,500 depending on the borrower risk. Platforms like Plenti and SocietyOne offer personal and business loans.

These platforms allow you to choose loans by risk level so you can create a diversified portfolio that suits your preferences. A major benefit of P2P lending is the higher returns.

Compared to traditional savings accounts which return 2-4% a $10,000 investment could return $1,000 per annum with a 10% interest loan – way more than bank savings.

P2P platforms assess borrower creditworthiness before lending to reduce risk. But defaults can still occur and you could lose part or all of your investment.

Diversification is key in P2P lending. Investors can spread their funds across multiple loan types – personal, car or business loans – to reduce reliance on one borrower’s repayments.

Platforms charge fees like service and origination fees which can eat into your returns. For example a 1% fee on a $10,000 investment reduces a $1,000 return to $900.

While P2P lending gives you higher returns, investments are less liquid as funds are tied to loan terms. You need to consider your liquidity needs before committing to P2P platforms.

In summary, P2P lending gives Australians higher returns than traditional savings options. By diversifying and understanding the risks it can add to your balanced portfolio.

Property Syndicates for Earning Interest

Property syndicates in Australia allow multiple investors to pool their funds and invest in large scale real estate projects. These syndicates focus on commercial properties like office buildings, shopping centres and industrial estates.

The main benefit of property syndicates is diversification. For example a $50,000 investment in a syndicate with 5 properties reduces the risk of a single property investment. Returns are 6-12% per annum.

Returns from property syndicates come from two sources: rental income and capital growth. In booming markets like Sydney or Melbourne property values can grow by up to 10% per annum during the boom.

But property syndicates come with risks. Market conditions, tenant demand and property management can impact both rental income and capital growth. A downturn in the market could reduce returns or result in losses.

Investors should be aware of the fees involved in property syndicates. For example a 1-2% management fee on a $50,000 investment would reduce returns by $500-$1,000.

Specialist managers or online platforms offer property syndicates which provide transparency and easier access to large scale investments. These platforms allow you to see how your funds are being managed and estimate the returns.

In summary, property syndicates give Australians the opportunity to invest in high value real estate with minimal capital. With research and selection they can provide steady returns and long term growth.

Farming Profits from Agricultural Investments in a Nutshell

Agricultural investments in Australia give you steady returns and diversification. Investments in grain farming, cattle stations and vineyards give 4-10% per annum depending on the type.

For example investing $100,000 in grain farming could give you $4,000-$10,000 per annum. This is a steady income stream especially if you’re looking for long term investments in agriculture.

One of the benefits of agricultural investments is consistent cash flow. Income from crop sales or livestock breeding gives you regular returns and land values grow by 5-8% per annum making it a long term investment.

Agricultural investments also act as an inflation hedge. As food prices rise agricultural products follow and provide protection against economic downturns with returns of 6%+ per annum during inflationary periods.

But agricultural investments come with risks. Weather, climate change and crop diseases can impact yields and profitability. Some years may see lower returns or even losses so risk management is crucial.

Investors can access agricultural investments through managed funds, agricultural bonds or direct investment in farming operations. Managed funds give 5-12% returns while direct investments can give higher returns with more risk.

Land based agricultural investments give you exposure to physical assets like farmland. Historically farmland in Australia gives 7-9% per annum so it’s a great option for long term investors looking for capital growth.

To reduce risks, diversification across sectors and regions is key. By investing in different crops or livestock you can reduce localised risks like weather and stabilise returns and improve long term performance.

Finally agricultural investments give you income and growth. Returns are 5-10% per annum so it’s a great option for diversification and inflation protection despite the risks.

Digital Savings Tools for High-Yield Apps to Multiply Interest

High-yield savings apps are becoming more popular in Australia with interest rates up to 5% per annum compared to the average bank savings rate of around 0.25%. For example depositing $10,000 in an app with 5% interest would give you $500 per annum.

The main benefit of these apps is their simplicity and accessibility, you can deposit money, track your savings and earn interest all from your mobile phone. So saving is easy for tech savvy Australians.

For example Up offers 5% interest on savings with automated savings goals and budgeting tools. 86 400 gives rates up to 4.5% per annum with no monthly fees so it’s a great option for savers.

One of the benefits of these apps is low entry barriers, no minimum deposit requirements or monthly fees. You can start saving and earning interest with small deposits.

These apps also offer flexibility, like setting multiple savings goals or rounding up purchases to save automatically. This feature helps you save without thinking about it so it’s a great way to build savings.

But interest rates on high-yield savings apps can change. Rates may be higher during promotional periods but will drop after a while so you should regularly check and compare rates to make sure you’re getting the best return.

High-yield savings apps are linked to your bank account so you can transfer money in and out easily. And they’re covered by the Australian Government’s Financial Claims Scheme so your deposits are protected up to $250,000.

In summary high-yield savings apps give Australians an easy way to earn competitive interest up to 5% per annum. They offer flexibility, simplicity and higher returns than traditional savings accounts.

Global Opportunities in International ETFs

International ETFs give Australian investors a way to diversify by investing in global stocks, bonds and commodities, reducing local economy risks. For example the Vanguard VEU ETF which tracks global stocks (excluding Australia) has given 7-9% per annum so $700 to $900 per $10,000 invested.

Investing in regions like the US, Europe and emerging markets gives Australians access to growth opportunities outside their home market. $15,000 invested in a global ETF with 7% return gives you $1,050 per annum.

Instead of picking individual foreign stocks investors get exposure to the entire market so it’s easier to diversify. $5,000 invested in an international ETF could give you $350 per annum at 7% return.

International ETFs also act as a hedge against domestic market volatility. When the Australian market is down global markets may be stable and $20,000 invested at 7% return could give you $1,400 per annum.

But currency fluctuations can affect returns. If the Australian dollar strengthens returns from overseas markets will decrease. For example $1,000 in returns could drop to $950 if the AUD strengthens.

Geopolitical events can affect ETF performance. Trade wars can cause volatility and returns can drop 5-10% depending on the severity of the event.

When choosing an international ETF you need to understand the regions and assets it tracks. Emerging market ETFs offer higher growth but higher risk, $800-$1,200 per $10,000 invested.

International ETFs tracking the US or Europe will give you 7-10% per annum. $25,000 invested will give you $1,750 to $2,500 per annum.

So international ETFs are good for Australian investors. $50,000 will give you $3,500 to $5,000.

Originally Published: https://www.starinvestment.com.au/best-investments-to-earn-interest-australia/