Are you thinking of buying a house in the next few years? Do you want to enjoy life to the full post-retirement? Are you planning a sabbatical to travel the world? Whatever the reason, and whatever stage of life you’re at, everyone wants to make their money work smarter.
We’ve already given you a few tips on how to do this, including considering alternatives to savings accounts and term deposits, that offer higher yields but with similar risk profiles. And this month we’re celebrating the fifth-year anniversary of one of those alternatives: Smarter Money Investments.
The Smarter Money Fund is a conservative short-term fixed interest fund that provides a return to investors through an actively managed portfolio of Australian cash securities and floating-rate notes (or bonds) issued mainly by banks. Not only could you get a higher return, but, unlike a term deposit, you can also access it any time you want, allowing you flexibility if your goal posts shift. You don’t need to have a huge amount of wealth already accumulated either, you can set up an account online, at no extra cost, with just $1000.
The fund, which is independently rated by third-party researchers, aims to deliver 1-2% return above the RBA cash rate, but is currently smashing targets at 4.1% per annum, while current term deposits are around 2.8% per annum. So, what does this mean for you? It means if you invest $10,000 in Smarter Money for 12 months, you would make an extra $410, which is $130 more than what you would make if you invested in a term deposit.
To start making money on your savings now, click here