how to invest $5000-250

How to start investing with a deposit between $5,000 to $9,999

Investing $5,000 to $9,999 presents you with multiple options but do you know which ones are best for you?

Putting your money in a bank account offers security, but you can get your money to work for you if you invest suitably. When investing some of your options include shares, futures and trading in foreign exchange and each comes with its own nuances. Learning about various investment alternatives is important because of the different levels of risk involved, and you may also have to deal with aspects like commissions, fees and minimum amounts.

Compare investment options

Rates last updated August 16th, 2018
Name Product Monthly Fee Standard Brokerage Fee Margin trading - Online IPOs / Floats International Description
IG Share Trading
$0
$8
Yes
Yes
Yes
Low brokerage fees on Australian and international shares. Earn 25 Qantas Points when you trade Australian shares, 50 Qantas Points when you trade international shares (T&C's apply).
SelfWealth Share Trading
$0
$9.50
No
No
No
Trade ASX-listed shares for a flat fee of $9.50, regardless of the trade size. New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
CMC Markets Stockbroking Account
$0
$11
Yes
Yes
No
Trade shares, warrants, options, EFTs, managed funds, bonds and IPOs with CMC Markets today.
Saxo Capital Markets Share Trading
$0
$6.99
Yes
No
Yes
Access over 19,000 Australian and global shares.
HalifaxOnline
$0
$14.95
Yes
Yes
Yes
Trade US and Australian shares, options, futures and CFDs with no registration fees. Trade 24/7 on your desktop, tablet or smartphone.

Compare up to 4 providers

Updated August 16th, 2018
Name Product Minimum Opening Deposit Minimum Spreads for Major Currencies Commission Minimum Trade Size Platforms
$0
0.6 - 1.5 pips
$0
1 lot
MetaTrader 4
ProReal Time
$0
0.7 - 1.5 pips
$0
0.01 lots
CMC Standard & Pro
AU$3,000
0.6 - 1.1 pips
$0
5,000 units
SaxoTrader
SaxoTraderGO
US$200
0.0 - 0.1 pips
AU$3.50 per 100k traded
0.01 lots
MetaTrader 4
MetaTrader 5
cTrader
AU$200
0.0 pips - 1.0 pips
$0
0.01 lots
MetaTrader 4
MetaTrader 5
WebTrader
$0
From 0.0 pips
$0
0.01 lots
MetaTrader 4
MetaTrader 5
WebTrader
$0
0.8 - 3.0 pips
$0
0.1 lots
MetaTrader 4
CloudTrade

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Name Product Past 1 Year Performance Past 5 Year Performance Past 10 Year Performance Insurance Included
13.60%
11.10%
6%
Death, TPD, Income Protection
12%
10.5%
5.8%
Death, TPD
11%
10.20%
5.70%
Death, TPD, Income Protection
11.18%
Not available
Not available
Death, TPD
N/A
N/A
N/A
Death, TPD, Income Protection
10.31%
Not available
Not available
Death, TPD

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Disclaimer: Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. This article is general advice. You should consider your own personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long term investment and past performance is not indicative of future performance.
Rates last updated August 16th, 2018
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
RaboDirect High Interest Savings Account
3.05%
1.80%
1.25%
$0
$0 / $1
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
ING Savings Maximiser
2.80%
1.00%
1.80%
$0
$0 / $0
Ongoing, variable 2.80% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month and make 5+ card purchases a month. Available on balances up to $100,000.
Bankwest Hero Saver
2.60%
0.01%
2.59%
$0
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
Bank of Queensland WebSavings Account
2.90%
1.30%
1.60%
$0
$1 / $1
Introductory rate of 2.90% p.a. for 4 months, reverting to the standard rate of 1.30% p.a. Available on balances up to $5,000,000 and subject to approval above this balance.
AMP Saver Account
2.55%
2.10%
0.45%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
HSBC Flexi Saver Account
2.50%
1.25%
1.25%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit $300+ each month (other conditions apply). Available on balances up to $5,000,000.
ANZ Online Saver
2.55%
0.50%
2.05%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 3 months, reverting to 0.50% p.a. Available on the entire balance.
HSBC Serious Saver
3.00%
1.60%
1.40%
$0
$0 / $0
Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 1.60% p.a. Available on balances below $1,000,000.
AMP SuperEdge Saver Account
2.05%
2.05%
0.00%
$0
$0 / $0
Link to your SMSF. Ongoing, variable 2.05% p.a. when you link to AMP SuperEdge Cash Account or a different transaction account for your SMSF in another bank. Available on the entire balance.
ANZ Progress Saver
1.71%
0.01%
1.70%
$0
$10 / $10
Ongoing, variable 1.71% p.a. when you deposit $10+ each month and make no withdrawals. Available on the entire balance.

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Rates last updated August 16th, 2018
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. Min Deposit Interest Earned
Citibank Term Deposit
2.60%
-
2.80%
3.00%
-
-
$100,000
UBank Term Deposit Account
2.60%
2.70%
2.75%
2.64%
-
-
$1,000
Bank Australia Term Deposit Account
1.15%
1.15%
1.55%
1.85%
2.15%
2.35%
$500
Bank Australia Term Deposit Account 5000+
2.20%
2.20%
2.60%
2.85%
2.95%
3.00%
$5,000
MyState Bank Online Term Deposit
2.50%
2.35%
2.55%
2.70%
2.80%
-
$5,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
AMP Term Deposit $25,000+
2.55%
2.60%
2.80%
2.85%
2.95%
3.00%
$25,000
AMP Term Deposit $100,000+
2.55%
2.60%
2.80%
2.85%
2.95%
3.00%
$100,000
AMP Term Deposit $5000+
2.35%
2.40%
2.60%
2.65%
2.75%
2.80%
$5,000
BCU Term Deposit
1.25%
0.71%
1.40%
1.45%
2.55%
1.80%
$1,000

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Rates last updated August 16th, 2018
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
AMP SuperEdge Saver Account
2.05%
2.05%
0.00%
$0
$0 / $0
Link to your SMSF. Ongoing, variable 2.05% p.a. when you link to AMP SuperEdge Cash Account or a different transaction account for your SMSF in another bank. Available on the entire balance.

Compare up to 4 providers

What are my options when I want to invest $5,000 - $9,999?

Pay outstanding debt

Chances are you have existing debt in the form of outstanding credit card dues as well as different types of loans. Spending some of your money to pay these off is a good idea, not only because it helps you become debt-free faster, but also because doing this can help you save some money in the form of interest. Fees and charges can apply when you repay some kinds of loan ahead of time.

Contribute to your superannuation

If you, like most others, are saving for your retirement, contributing to your superannuation fund can be a good idea. Your contribution from post-tax income is not subject to tax up to certain limit. If you make contributions from post-tax income and earn less than $50,454 per annum you benefit further because the government matches your donations and this money adds to your super as well.

Compare super fund accounts

Managed funds

A managed fund consists of multiple investors who have a investment manager making trades on their behalf. You can benefit through the expertise of the investment manager without having to do groundwork on your own, but you can’t expect guaranteed returns.

Share market

Seasoned investors tend to dabble in the share market because it normally offers better returns than bank accounts. By buying a share, you’re essentially getting a unit of the company in question. If the company generates profits, you stand to earn dividends, and you can also benefit by increase in share prices.

Compare share trading accounts

Options

Options are contracts that let you buy or sell underlying assets at specified prices on specified dates, without actually having ownership. The time period they remain valid for can vary from a few weeks to a few months. Investing in options requires that you learn the tricks-of-the-trade well, failing which you can lose money.

Futures

You can benefit by investing in futures through considerable leverage. With $5,000, you can control a futures contract worth around $75,000, but needing access to additional cash if there’s a margin call can be a problem. Besides, the end result can be you losing more money than you’d started off with.

Trading foreign exchange

You can benefit through noticeable leverage by investing in foreign exchange, but you can also suffer significant losses. Learning how this field works in not difficult and you don’t have to invest much when you start.

Compare forex trading accounts

Term deposits and high interest savings accounts

Anyone looking for guaranteed returns can consider setting money aside in a term deposit or a high interest savings account. While a term deposit requires that you put your money away for a chosen time period, high interest savings accounts offer easier access to funds.

Compare Term deposit and HISA accounts

Cash management accounts

A cash management account comes with multiple components such as a savings account, an online trading platform and a super fund. Such accounts let you handle your investment requirements through a single platform.

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How do I compare investment products?

  • Minimum amount requirements. If you want to open a term deposit the starting point is usually $500 or $1,000. In the share market, you can buy just one share, and how much you’ll have to spend depends on the share’s value. You can start investing in futures with little money and this is also the case with trading in foreign currency.
  • Fees and commissions. If you’re planning to go the shares and futures way expect to pay some kind of brokerage fees. If you’re hoping to pay fixed fees per trade you’re better off looking at online brokers because full service brokers normally charge fees as percentages of all trades and deal with high net-worth clients. High interest savings accounts and term deposits tend not to charge any account keeping fees.
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What are the pros and cons to investing in an asset other than a savings account?

Pros

  • Government guarantee. The Australian Government Guarantee Scheme provides security to deposits of up to $250,000 per person per institution, and you can fall back upon this scheme in case your financial institution has trouble in honouring your deposit. To make the most of this scheme, you can consider banking with multiple institutions when cumulative balances in any one institution crosses the $250,000 mark.
  • Guaranteed returns. Putting your money in a savings account is a safe bet because you’ll continue to earn a standard variable rate for as long as you keep money in the account. Online banks tend to offer better rates than conventional banks because they benefit through reduced overhead costs. Credit unions also offer competitive interest rates because they don’t have to share profits with shareholders. If you choose the right account and play your cards right you can even earn bonus interest.
  • Cater to different needs. Features that savings accounts come with can vary from one offering to the next, allowing you to choose an account as per your needs. If you want 24/7 access to money in your account, pick one that provides free access to online and phone banking. If you want to use money in your account to pay bills, you can find an account that provides BPAY access.

Cons

  • Inadequate returns. Savings accounts in Australia tend to offer interest rates in between 2% and 3.5%. These rates are lower than what you stand to make through other means of investments.
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What are the risks?

  • Limited information. A little research can go a long way in the world of investments even if you’re putting your money is a seemingly simple asset like a term deposit. This is because not all financial institutions offer the same interest rate. When dealing with more complicated assets like shares and futures, learning the intricacies becomes all the more important.
  • Fees. When you invest your money, you’ll use the services of a financial institution or a broker, or both. Before you begin any such relationship, take time you find out how much you may have to pay as fees in different situations.
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Is there anything else I should consider?

  • Risk. In most cases, there is a direct link between the risk your investments face and the returns they generate. If you’re looking at greater potential returns, it is only natural that you should prepare to take higher levels of risk. However, risk perception can vary and does not have a necessary bearing on statistical analysis.
  • Risk profiling. Your willingness to take risk coupled with how it can affect your judgement translates into your risk profile. By going through the process of risk profiling you address aspects like risk capacity, risk required and risk tolerance, and this helps you arrive at optimal investment risks.
  • Financial goals. Setting financial goals is crucial but you should be able to measure how you’re doing as and when required. When planning for retirement, calculate just how money you’ll require when time comes.

Frequently asked questions

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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Related Posts

Savings Account Offers

Important Information*
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.80
ANZ Progress Saver

Maximum Variable Rate

1.71

Standard Variable Rate

0.01

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