There comes a time in the lives of most Australians when they wish to start saving their money to build their wealth. The good thing is you can start investing with relatively small sums, and $1,000 is a pretty good start. Given options such as term deposits, shares and futures, knowing how they work becomes crucial, so you know what’s best for you. You would also have to pay attention to aspects like minimum amounts, fees and commission.
If you have an existing credit card debt, student loan, personal loan or home loan, use some of the money you have to repay your debt. This can help you save in the form of interest in the long run, and the quicker into a loan you make a lump sum repayment, the more you can save.
Any money you can spare towards your super fund can increase your super savings considerably. Know that the government does not tax contributions from your after-tax income because you’ve already paid tax, but there’s a limit in place before you have to start paying tax. If your pre-tax annual income in less than $50,454 and you make after-tax super contributions, you stand to get matching contributions from the government.
Simply put, buying a share is buying a single unit of ownership of a public business. You can buy shares of companies listed on the Australian Securities Exchange (ASX), and you get to choose from shares of over 2,000 companies. You can benefit if there’s an increase in the share price and also if you get a share in the company’s profits in the form of dividends. Yo generally only need a deposit of $500 to start share trading on the ASX.
A lot of term deposits allow you to open the account with a deposit of $1000 or more. With a term deposit, you will have to lock your money in the account for a given time period and in exchange you'll earn a fixed interest rate on your deposit. You can usually choose a term length from as little as one month to five years at a time. Term deposits are a low-risk way to invest your cash.
If you don't like the idea of locking your money in a term deposit, a high interest savings account is another option for deposits of $1000 or more. Bonus savers usually offer a slightly more competitive interest rate than term deposits, however they often have monthly deposit conditions to meet. Although, a monthly deposit condition is a great way to help you save money .
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $50,000 and $250,000. Learn more about this high interest savings account.
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $250,001 and $500,000. Learn more about this high interest savings account.
Earn an ongoing bonus rate when you deposit $100 a month and make no withdrawals.
The Bankwest Easy Saver account offers a bonus rate for the first 4 months, then an ongoing standard variable rate with no conditions to meet.
Check out out review of the Bank of Queensland Simple Saver Account.
The Great Southern Bank Goal Saver Account has an ongoing bonus rate on balances up to $50,000 for customers aged 18-24.
Earn 2.30% p.a. on your savings each month you make at least one deposit and make no more than one withdrawal.
The Virgin Money Boost savings account (for 18-24 year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
The Virgin Money Boost savings account (for 25+ year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
Available to SMSFs, the Rabobank Notice Saver offers a high interest rate on your savings, but you’ll need to give at least one-month’s notice before you can withdraw your funds.