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I have recently been given a $60,000 AUD for the deposit on a house. I have since discovered that I am not earning enough to get a good enough mortgate. I think if I wait a couple of years I'll be earning more and I'll be able to get a better mortgate.

Currently my bank is offering 2.8% p.a. interest if I leave the 60k in my savings account. What are my options in terms of getting a better return than that?

I don't really want to go the route of investing the money, because there's there can be more risk with that than I'm prepared for.

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    you can't. 2.8% is the risk free rate, look outside of australia and you will find that banks and governments are not offering anywhere CLOSE to 2.8%. The most competitive US banks offer 0.95% , as an example. Other methods require you to keep your cash tied up longer than "a couple of years", and would also be considered investing to you
    – CQM
    Oct 12 '15 at 5:30
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    @CQM - you are incorrect, there are many banks and other financial institutions offering more than 2.8% interest in Australia. The highest so far is 3.6% as long as you deposit at least $200 per month and make no withdrawals.
    – Victor
    Oct 12 '15 at 8:19
  • If you're after better returns and have a longer term (5 to 10 years) aim for using the money, open a brokerage account and invest (at least some of) it in the Australian stock market.
    – Peter K.
    Oct 12 '15 at 13:10
  • @Victor I was so close to mentioning depositing in a competing bank in Australia, but I didn't. Thanks :)
    – CQM
    Oct 12 '15 at 13:21
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NAB's Reward Saver account offers 3.05% interest IF you deposit at least once a month and DO NOT withdraw in that same month. Given that this is the nature of your needs, it might work for you. If you don't deposit OR withdraw once in that month, you'll get 0.55% interest for that month only.

I personally have a few of these accounts for big value accounts (mortgage, car, my rainy day fund, etc), and I find it very useful as I always make it a point to save.

You can deposit even $20, $10, or $1 per month, as long as there is money coming in, you'll get the 3.05% interest rate.

According to canstar*, RAMS is also offering something similar to NAB's Reward Saver, with a total of 3.6% interest, but you have to deposit a minimum of $200/month. However, I cannot attest to this as I personally haven't used RAMS' services.


*Search limited to NSW, not sure if it also applies to other states.

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    The RAMS account does seem to be the highest, even higher that term deposits. If and when you do get a mortgage, get one with an 100% offset account and place any extra savings and cash into that, I'm getting the equivalent to 4.5% through my offset accounts.
    – Victor
    Oct 12 '15 at 8:15

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