Looking for the best cash investments, term deposits or money market funds in Australia? We don’t rank them. Below are term deposits, cash ETFs and cash funds, filterable by category, objective and investor type, with rates, fees and the offer document where the issuer has published them.
Use the filters to narrow the listings, open the ones that suit your goal and compare them on their own numbers. Everything on this page is general information only, not personal advice, so consider your circumstances and read the offer document before you invest.
▪ The RBA cash rate target is 4.60%, effective 30 September 2026, after four rate rises in 2026 (Reserve Bank of Australia).
▪ Annual CPI inflation was 4.0% in August 2026 (RBA), so cash is only just ahead of inflation before tax.
▪ Bank deposits, including term deposits, are protected by the government’s Financial Claims Scheme up to $250,000 per account holder, per institution (APRA). Cash ETFs and cash funds are not.
▪ Over the 30 years to June 2026, Australian cash returned 4.0% a year against 2.7% inflation and 9.0% for Australian shares (Vanguard).
▪ Choose between at-call savings, term deposits, cash ETFs and cash or money market managed funds based on return after fees, access, protection and what each one holds.
▪ Cash is a short-term home for money you need soon, an emergency buffer or the first bucket of a retirement income plan. It is rarely a long-term growth engine.
▪ Cash, Term Deposits and Money Market Funds in Australia: Compare Cash Investments
▪ What Are the Best Cash Investments, Term Deposits and Money Market Funds in Australia?
▪ How Do I Compare Cash Investments on InvestmentMarkets?
▪ What Are Cash and Money Market Investments?
▪ What Are the Different Types of Cash Investments?
▪ What Is the RBA Cash Rate Today and Why Does It Matter?
▪ Do Cash Investments Beat Inflation?
▪ Is My Cash Guaranteed by the Government?
▪ What Are the Benefits of Cash and Money Market Investments?
▪ What Are the Risks of Cash and Money Market Investments?
▪ How Can I Invest in Cash in Australia?
▪ How Does a Term Deposit Ladder Work?
▪ How Much of My Portfolio Should Be in Cash?
▪ Should I Choose Cash, Bonds or Private Credit for Income?
▪ Summary
▪ Further Reading From InvestmentMarkets
There is no single best cash investment. The right choice depends on how soon you need the money, whether you want the government guarantee, and how much extra return you will accept for extra risk. A term deposit locks in a fixed rate. A cash ETF trades daily on the ASX. A cash or money market fund pools money into short-term securities managed by a professional. Enhanced cash funds add some short-term credit for extra yield.
Start with the job you want your cash to do, then browse the matching listings.
If You Want To… | Consider | Browse |
Lock in a rate with the government guarantee | Term deposits with an Australian bank, building society or credit union | |
Hold cash you can buy and sell on the ASX | Cash ETFs that hold bank deposits or short-term securities | |
Have a manager run your cash | Cash and money market managed funds | |
Earn a little more than cash | Enhanced cash and short-term income funds | |
Step out the yield curve | Bond funds and bond ETFs | |
Access wholesale cash strategies | Cash and income funds for wholesale investors | |
Hold cash inside your SMSF | Term deposits, cash ETFs and cash funds |
Among the listings you will find bank products such as Heartland Bank Term Deposits and Bank Australia Term Deposits, ASX-listed options such as the Betashares Australian High Interest Cash ETF (AAA), the iShares Core Cash ETF (BILL), the iShares Enhanced Cash ETF (ISEC) and the Betashares Australian Cash Plus Active ETF (MMKT), and unlisted funds such as the Mutual Cash Fund, the Remara Cash Management Fund and the wholesale Wealth Cash Income Fund. These are examples of the range, not recommendations.
Filter the listings by category, objective (such as income) and investor type (retail or wholesale). Where the issuer has published them, listings show rates or yields, fees, performance figures and the offer document, along with the minimum investment, liquidity and structure. Open a listing to read the detail or enquire directly with the issuer.
Five checks to run before you choose where to hold your cash.
What To Compare | Why It Matters | Where To Find It |
Rate or yield after fees | A headline rate means little if fees eat into it. Compare net returns. | Listing, where the issuer has published it, and the offer document |
Fees and costs | Management fees on cash funds and ETFs, and account fees on deposits, reduce what you keep. | Listing, where the issuer has published them, and the offer document |
Access and liquidity | At call, daily ASX trading, notice periods or a fixed term all affect how fast you can get your money. | Listing and offer document |
Government guarantee | Bank deposits are covered up to $250,000 per person per institution. Funds and ETFs are not. | Issuer website and APRA |
What it holds | Bank deposits, bank bills, government securities or short-term credit carry different risks. | Offer document and published holdings |
Minimum investment | Ranges from the price of one ETF unit to tens of thousands of dollars for some funds. | Listing |
Interest payment frequency | Monthly, quarterly or at maturity affects your cash flow. | Offer document |
InvestmentMarkets is building Australia’s central hub for fund and ETF investing. Here is how this page works.
▪ List term deposits, cash ETFs, cash funds and other investments so you can browse them in one place.
▪ Show issuer figures such as rates, fees and performance, and link to the offer document, where the issuer has published them.
▪ Let you filter by category, objective and investor type.
▪ Connect you directly with issuers so you can ask questions before you invest.
▪ Publish independent fixed income articles and investor education to help you make better decisions.
▪ Rank cash products or tell you which one to choose.
▪ Provide personal financial advice. Information here is general only.
▪ Guarantee any rate or return. Rates can change, and only bank deposits carry the government guarantee.
Cash and money market investments hold liquid, low-risk assets that earn interest. They sit between an everyday savings account and more complex investments such as bond funds or income funds. Money markets are where banks, governments and companies borrow and lend for short periods, usually less than a year, through instruments such as bank deposits, bank bills, negotiable certificates of deposit and short-term government securities. Cash investments give you access to these rates either directly through a bank, or indirectly through a fund or ETF.
Cash options range from guaranteed bank deposits to funds that add a little credit risk for extra yield.
Bank accounts that pay interest and let you withdraw at any time. Rates are variable and some accounts pay bonus interest only if you meet conditions such as a monthly deposit. These accounts are covered by the government guarantee.
Term deposits lock your money away for a fixed term, from one month to five years, at a fixed rate. Breaking one early usually requires notice and costs interest. For example, Macquarie requires at least 31 days’ notice and may charge a fee of 25% of interest accrued on its standard term deposit. Term deposits with an Australian bank, building society or credit union are covered by the government guarantee.
Cash ETFs trade on the ASX like shares. Some hold bank deposits, others hold short-term money market securities, and some actively managed or enhanced versions add short-term credit. You can buy or sell during trading hours, though you pay brokerage and the bid-ask spread. They are not covered by the government guarantee.
Read Meet the ETF Market Maker to understand how ETF trading works.
Cash managed funds pool investors’ money into bank deposits, bank bills and short-term securities. They often offer easy access, usually within a few business days, and are popular with platforms, SMSFs and wholesale investors. They are not covered by the government guarantee.
These funds aim to beat the cash rate by adding short-dated corporate bonds, asset-backed securities or other credit. The extra return comes with extra risk, including the chance of capital losses in a credit downturn. They sit closer to income funds and diversified income funds than to bank deposits.
Read Chasing Yield, Losing Wealth before you reach for yield.
Cash accounts held with a broker or investment platform to settle trades and receive income. Rates vary widely, and some pay well below the cash rate, so check before you leave large balances sitting idle.
The Reserve Bank of Australia cash rate target is 4.60%, effective 30 September 2026. It is the anchor for what banks pay on deposits and what cash funds earn. The RBA cut the rate three times in 2025, to 3.60%, then raised it four times in 2026 as inflation stayed high. In its 29 September 2026 decision, the Board said further increases may follow if needed.
When the cash rate rises, new term deposit rates and cash fund yields generally follow, though not always in full. When it falls, returns on cash fall quickly too.
Major banks expect rate cuts from 2027, which is one reason some investors lock in longer-term deposits or move part of their cash into bond funds.
Read The Rate Hikes Keep Coming and The Bigger Picture: October 2026 for more context.
Only just, right now. Annual CPI inflation was 4.0% in August 2026, against a 4.60% cash rate, a gap of about 0.6 percentage points before tax. After tax at your marginal rate, many investors earn a negative real return on cash.
Source: RBA cash rate and RBA inflation overview.
Over the long run, cash has kept ahead of inflation but lagged growth assets by a wide margin. Vanguard’s Index Chart shows Australian cash returned 4.0% a year over the 30 years to 30 June 2026, compared with 2.7% inflation, 5.2% for Australian bonds and 9.0% for Australian shares. $10,000 in cash grew to $32,459, while the same amount in Australian shares grew to $132,931.
Source: Vanguard Index Chart. Past performance is not a reliable indicator of future performance.
Source: Vanguard Index Chart. Before fees and taxes.
If beating inflation is the goal, consider whether some of your cash belongs in bond funds, hybrid securities or growth assets such as Australian ETFs and Global ETFs.
Read The Hunt for Real Yield and Is This 1973 Again? Your Stagflation Survival Guide.
Bank deposits are; cash funds and ETFs are not. The Financial Claims Scheme protects deposits with Australian banks, building societies and credit unions up to $250,000 per account holder, per institution, according to APRA. It covers transaction, savings and cheque accounts, term deposits and separate mortgage offset accounts, held by individuals, companies, trusts or SMSFs. If the scheme is activated, APRA aims to pay account holders within seven calendar days.
Source: APRA, Financial Claims Scheme.
Cash ETFs, cash funds and enhanced cash funds are investment products, not deposits, so the scheme does not cover them even when they hold bank deposits. Their safety depends on what they hold and how they are managed. If you hold more than $250,000 in deposits, spreading it across separately licensed institutions keeps more of it within the guarantee.
Learn more on APRA’s Financial Claims Scheme page.
▪ Capital stability: cash investments aim to protect your capital, with little or no movement in value.
▪ Liquidity: at-call accounts, cash ETFs and most cash funds give quick access to your money.
▪ Regular income: interest is usually paid monthly, quarterly or at maturity.
▪ Government guarantee: bank deposits, including term deposits, are covered up to $250,000 per account holder per institution.
▪ Portfolio ballast: cash cushions a portfolio in market sell-offs and gives you money to deploy when opportunities appear. Read Patience Is an Investment Decision.
▪ Inflation risk: returns may not keep pace with rising prices, especially after tax.
▪ Reinvestment risk: when rates fall, maturing term deposits roll over at lower rates and cash fund yields drop.
▪ Access limits: term deposits need notice to break early and can cost interest. Some savings accounts cap withdrawals or bonus interest.
▪ Credit risk: enhanced cash and income funds can lose capital if borrowers default. Read Understanding Investment Risk: A Framework for Fixed Income Investors.
▪ No guarantee on funds: cash ETFs and cash funds are not covered by the Financial Claims Scheme.
▪ Opportunity cost: holding too much cash for too long can leave you well behind growth assets over time.
You can access cash through banks, building societies and credit unions; through the ASX via a broker; or through fund managers and investment platforms.
Many SMSFs hold a mix. Browse SMSF investments to see options suited to self-managed funds.
Vehicle | How You Access It | Typical Minimum | Access | Government Guarantee |
At-call savings | Bank, building society or credit union | Often $0 | At call | Yes, up to $250,000 |
Bank, building society or credit union | Often $500 to $10,000 | Fixed term, notice to break | Yes, up to $250,000 | |
Buy on the ASX via a broker | Price of one unit | Daily on the ASX | No | |
Apply to the issuer or via a platform | Varies by fund | Usually within days | No | |
Enhanced cash and income funds | Issuer, platform or ASX | Varies by fund | Daily to monthly | No |
A term deposit ladder splits your money across several maturities so part of it becomes available at regular intervals. As each rung matures, you either use the cash or reinvest it at the longest term. A ladder reduces the risk of locking everything in just before rates rise, and of rolling everything over just after they fall.
Illustrative example only. Not a recommendation.
The same idea can be extended into bonds and other income assets.
Read The Income Ladder Strategy: Combining Bonds, Credit and Dividends.
It depends on your goals, time frame and need for access. Common approaches are an emergency fund of three to six months of expenses, plus cash set aside for known spending in the next year or two. In retirement, a three-bucket approach holds cash for spending needs in the next few years, defensive assets for the medium term and growth assets for the long term, as explained in How a 3-Bucket Strategy Can Help Optimise Retirement Income.
Cash usually forms the first bucket of a retirement income plan.
Beyond that, money left in cash for many years risks falling behind inflation. Diversified multi-asset portfolios, bond funds and growth assets such as Australian equity funds and global equity funds may suit longer horizons.
Read How to Build a Reliable Income Portfolio and How to Stress Test Your Portfolio Before the Next Market Shock.
Each does a different job. Cash offers stability and access. Bond funds and bond fund ETFs can lock in yields for longer and may rise in value if rates fall, but their prices move. Private credit and mortgage funds can pay more, but carry credit and liquidity risk. With Australian 10-year government bond yields around 5.4%, longer-dated income looks more competitive than it has for years.
Read Fixed Income Trade-Offs, The Return of Australia’s Income Trade, Why Is Private Credit Growing So Rapidly in Australia? and Pilot Error, or the Weather?.
Cash, term deposits and money market funds give you stability, liquidity and income, and with the RBA cash rate at 4.60% they pay more than they have for much of the past decade. But with inflation at 4.0%, cash only just keeps pace before tax, and over the long run it has lagged growth assets. Decide what job your cash needs to do, check whether it is covered by the government guarantee, and compare returns after fees.
Use the listings on this page to compare the term deposits, cash ETFs and cash funds available, then judge each one on its numbers.
A money market account or fund typically invests in short-term securities and may pay a higher rate than a standard savings account, though it may have higher minimum balances or limits on transactions. A bank savings account is a deposit covered by the government guarantee, while a money market fund is not.
Deposits with Australian banks, building societies and credit unions, including term deposits, are covered by the Financial Claims Scheme up to $250,000 per account holder, per institution. Cash ETFs, cash funds and money market funds are not covered.
Usually, yes. At-call accounts give instant access, cash ETFs trade daily on the ASX, and most cash funds pay out within a few business days. Term deposits are the exception: you typically need to give notice and may lose some interest to withdraw early.
Some accounts charge a fee or pay a lower interest rate if your balance drops below a set minimum. Check the terms or offer document before you open an account.
Some savings accounts charge monthly fees, particularly if conditions are not met. Cash ETFs and cash funds charge management fees, and ETFs also involve brokerage. Where the issuer has published them, listings on this page show fees.
Most savings accounts and cash funds pay monthly. Term deposits may pay monthly, quarterly, annually or at maturity, and rates are sometimes lower if you choose more frequent payments.
It ranges from nothing for many savings accounts, to the price of one unit for a cash ETF, to thousands or tens of thousands of dollars for some term deposits and cash funds. Wholesale funds usually require larger amounts and wholesale investor status.
Yes. Their liquidity and capital stability make at-call savings and other easily accessible cash a sensible home for an emergency fund. Avoid locking emergency money in a term deposit you may need to break.
The RBA cash rate target is 4.60%, effective 30 September 2026, according to the Reserve Bank of Australia.
A term deposit is a bank deposit with a fixed rate and term, covered by the government guarantee. A cash ETF is an investment fund traded on the ASX with a variable yield, daily liquidity and no government guarantee.
No. Enhanced cash funds hold some short-term credit to earn extra return, which means they can fall in value if borrowers default or credit markets come under stress. Check the offer document to see what the fund holds.
Yes. SMSFs commonly hold term deposits, cash ETFs and cash funds, subject to the fund’s investment strategy. The government guarantee applies to SMSF bank deposits up to $250,000 per institution. Browse SMSF investments.
That depends on your view of rates and your need for access. Locking in protects you if rates fall, but costs you if rates keep rising. A ladder of maturities spreads that risk. This is general information only, so consider seeking advice.
▪ The Rate Hikes Keep Coming: Should You Pay Down Your Mortgage or Keep Investing?
▪ Is This 1973 Again? Your Stagflation Survival Guide
▪ The Bigger Picture: October 2026
▪ What Happened to Shares When the US 10-Year Treasury Yield Hit 5% in the Past?
▪ What the US Treasury’s Yield Battle Means for Australian Investors
▪ How a 3-Bucket Strategy Can Help Optimise Retirement Income
▪ The Search for Reliable Income: What Investors Should Consider
▪ Australia’s Debt Problem Is Also an Investor’s Problem
▪ The Return of Australia’s Income Trade
▪ The Hunt for Real Yield: How to Outpace Inflation Without Leaving the Bond Market
▪ Chasing Yield, Losing Wealth: Steps to Avoid the Biggest Income Fund Mistakes
▪ CIPRs Explained Simply: Building a Reliable Retirement Income Stream
▪ How to Invest Domestically and Thrive Despite the Tough Australian Economy
▪ Australia’s Booming ETF Landscape
Browse all fixed interest articles or the latest InvestmentMarkets articles.
Disclaimer: This article is prepared by Simon Turner. It is for educational purposes only. While all reasonable care has been taken by the author in the preparation of this information, the author and InvestmentMarkets (Aust) Pty. Ltd. as publisher take no responsibility for any actions taken based on information contained herein or for any errors or omissions within it. Interested parties should seek independent professional advice prior to acting on any information presented. Please note past performance is not a reliable indicator of future performance.
Looking for a way to get more from your savings?
The Mutual Cash Fund is a portfolio of the best Australian major bank term deposits with small cash holdings.
AAA aims to provide attractive, regular income distributions and a high level of capital security via cash held in Australian dollar interest bearing bank deposit accounts.
The Fund provides an opportunity for Wealth Managers to access cash-based products designed with specific considerations to their core needs across returns, liquidity, administration, and reporting. (For Wholesale Investors Only)
The Fund employs a passive investment strategy that aims to provide investors with the performance of the S&P/ASX Bank Bill Index (before fees and expenses). The Fund offers the ability to achieve capital preservation and regular income with a diversified portfolio of high quality short-term money market instruments. The Fund is truly liquid and only holds investments in instruments that can be sold on a same day basis.
MMKT aims to generate a yield (before fees and expenses) that exceeds the Bloomberg AusBond Bank Bill Index, paid monthly, from a portfolio of Australian dollar cash and short-term money market securities issued by investment grade entities.
The Fund uses a passive investment strategy aimed to provide investors with performance, before fees and expenses, that is broadly aligned with, and which may exceed, the performance of an index comprised of Australian bank bills.
Are you looking for a safe and rewarding place to invest your money?
The no fee, fixed term deposit making a positive difference to more than just your bank balance.
