Australia's best short-term investments for August 2026
Trying to balance risk and reward over a shorter time frame? The products below are considered low risk and have the highest yields or interest rates compared to their peers at the time of writing.
These rates are subject to change and historical returns or rates are not necessarily indicative of future performance.
If you want to invest your money for a couple of years or even months before withdrawing the cash, you have a few avenues available to you in Australia.
This guide looks at the options you have depending on you how long you can stay invested and how much risk you're willing to take on.
While day-trading is also short-term (and high risk), in this guide we're primarily looking at options that are on the lower end of the risk spectrum.
What are short-term investments?
Short-term investments are any kind of investment that is held for up to 2 years or less.
The goal of any investor is to maximise returns while reducing risks as much as possible. The shorter your timeframe, the harder this job is.
The general gist is that low risk investments typically have low returns, and the opposite is true for high risk investments, though of course your returns are far from guaranteed.
Why invest short-term?
There are many reasons you might only want to invest for a year or 2, or even less.
For example, you might have a big purchase you're saving up for, like a house deposit, or an overseas trip. Rather than having your cash sitting there devaluing (thanks, inflation), you can put it to work and earn some extra income.
In this case, you'll need to look for an investment that is very low or zero risk, because you have very real plans for those funds in the near future.
On the other hand, traders that are able to take on more risk might try to make a quick return on a highly volatile asset, at the expense of potentially losing it all overnight.
These are both short-term investments with potentially very different outcomes.
Both options are safe investments and are covered under the Government Guarantee, which means your funds are backed up to a total of $250,000.
As of May 2025, the highest rate for interest earning savings accounts are over 5%, depending on several criteria, while term deposits have rates up to 4.7%.
The best savings account rates in August 2026
Ubank Saveoffers an introductory variable rate of 5.85% for 4 months on balances up to $1 million (this will go up to 5.60% p.a. on 24 March!)
Westpac Life (18-29s) offers an ongoing bonus rate of 5.75% when you grow your balance and make 20 purchases.
ING Savings Acceleratoroffers 4.8%4.8% for the first 4 months on balances between $150k - $500k.
Judo Bank Savings Account offers an ongoing bonus rate of 5.35% when you deposit $300 per month.
At the moment, the best term deposit rates can be found with short terms. Here are some of the market's highest term deposit rates right now:
with Community First Bank
5.4% with Heartland Bank
5.3% with Unity Bank
5.35% with Judo Bank
Market update by Alison Banney – Finder money editor
Savings accounts are great for ultimate flexibility as, unlike with a term deposit, you can add or withdraw funds at any time. On the downside, banks also have the flexibility to change rates at any time.
This is where term deposits are superior. Although your funds are locked in for the duration of the term, the applied interest rate is also fixed.
Where to invest: With a bank
Risk level: Low – the first $250,000 is guaranteed by the government
Liquidity: High
Minimum: Starting from $0
Fees: Varies depending on the bank's fees
Short-term exchange traded funds (ETFs)
Exchange traded funds are investment portfolios that are traded over an exchange like stocks. They make it possible to invest in multiple assets at the same time, similar to a superfund.
Traditional ETFs hold hundreds of stocks that make up major markets, such as the S&P 500 or S&P/ASX 200 indices. But these days they can hold almost anything, from bonds to property and even cryptocurrencies.
That means ETFs can range from low risk to very high risk and can be appropriate for short or very long time horizons.
The best short-term ETFs for 2026
ASX code
Fund name
Recommended timeframe
Risk appetite
5-year performance (p.a.)
QPON
BetaShares Australian Bank Senior Floating Rate Bond ETF
2+ years
Medium risk
3.62%
AAA
BetaShares Australian High Interest Cash ETF
No minimum investment timeframe
Low risk
2.97%
ISEC
iShares Enhanced Cash ETF
No minimum investment timeframe
Very low risk
2.97%
BILL
iShares Core Cash ETF
No minimum investment timeframe
Very low risk
2.88%
XARO
Ardea Real Outcome Bond Complex ETF
2+ years
Low risk
2.19%
FANG
ETFS FANG+ ETF
2+ years
High to extremely high risk
18.76%
ETPMAG
Global X Physical Silver ETF
No minimum investment timeframe
Very to extremely high risk
28.64%
ACDC
Global X Battery Tech & Lithium ETF
2 years
Very to extremely high risk
16.65%
TECH
Global X Morningstar Global Technology ETF
2+ years
Extremely high risk
4.52%
ZYUS
Global X S&P 500 High Yield Low Volatility ETF
2 years
High to extremely high risk
10.97%
We filtered ETFs that were suitable for short-term investing of up to 2 years based on information published in the ETFs' Target Market Determination (TMD) forms.
We then selected the 5 best performing ETFs (over 5 years) in both the low and high risk categories. Performance is to March 2025.
Only ETFs that have been listed for at least 5 years were included.
We currently don't have that product, but here are others to consider:
Looking for other options? Check out these similar products.
How we picked these
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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.
Short-term bonds
A bond is essentially a type of loan. When you invest in a bond, you're offering a loan to a company or the government, and in exchange they agree to pay you regular interest (called a coupon) and will repay the loan in full when the bond matures.
The interest return that you receive is called a yield and this varies depending on when the bond reaches maturity and how much risk you're taking on.
While Australian government bonds are very safe, some corporate bonds might be on the riskier side. If for example, you invest in a corporate bond and that company collapses, you risk losing your entire investment.
The best bond for you depends on your investment goals, but in general it has a maturity date that suits your time horizon, a high yield or coupon rate, a high safety rating and a price that is at a discount or close to its face value (typically $100 per bond unit).
At the time of writing, the treasury bonds with the highest coupon rates are GSBG26 (4.25% to April 2026) and GSBG27(4.75% to April 2027).
Risk level: Low (Australian government bonds, some corporate bonds) to high (some company bonds)
Liquidity: High
Minimum: $500 minimum with exchange traded bonds, but $10,000 or more for some corporate bonds
Fees: From 0.5% to 1% – depending whether you buy bonds directly or through a broker
Cryptocurrency staking
Cryptocurrencies are notoriously volatile, but there are some lower risk products that behave in a similar way to bonds or savings accounts — albeit without loss protection and government-backing.
For example, staking allows you to earn a passive income by locking up certain cryptocurrencies, like Ethereum, Solana or Cardano, to help and secure their networks. In return, you receive staking rewards, similar to interest payments.
While some staking options require you to lock up your funds for a set period, many platforms now offer flexible or liquid staking, meaning you can withdraw your funds relatively quickly.
The most popular cryptocurrencies to stake August 2026
Though these products behave like interest earning savings accounts, they're still riskier because they're not government-backed and your returns depend on the security and stability of the blockchain or platform you're using. If the crypto network fails, the platform gets hacked or the token lose value, you could lose part or all of your investment.
Risk level: High (depends on the exchange and coin)
Liquidity: Low to high
Minimum: No investment minimums, pending the exchange you use
Fees: Starting from 0% depending on the broker and the exchange
How do you choose the best short term investment for you?
When it comes to short-term investing, it's not about chasing the highest rate, it's about finding the balance between risk, flexibility and return that works for you.
Start by asking yourself: How soon will you need the money? If you're planning a big purchase in the next 6-12 months, you'll probably want something low-risk and highly liquid (meaning you can easily withdraw your funds), like a high-interest savings account or a short-term government bond.
But if you can lock your money away for a year or 2, you might be able to squeeze out a bit more with options like corporate bonds or fixed income ETFs. Just be aware, the higher the return, the more risk or restrictions you're usually taking on, whether that's credit risk, market risk or simply not being able to touch your cash.
Also, don't forget about taxes. A term deposit or savings account might offer a nice round 5% interest, but if you're paying income tax at 37% or higher, your real return could shrink fast. Some bond structures offer better tax efficiency, especially if you're a savvy investor or using a trust or SMSF.
What's the best way to grow your wealth in under 2 years?
"If you’re risk-averse and happy with returns of circa 5% p.a., I’d suggest a high-yield cash account. If you’re looking for returns of over 10% p.a. I’d suggest an ETF or managed fund which is diversified across geography, sector and asset class. If you’re looking for performance that may shoot the lights out, high-risk investments such as crypto could be for you; you can invest in a single token or buy a basket of digital tokens. Or, consider investing in gold bullion which enjoyed a 25.5% return in 2024 (World Gold Council), and is also the ‘go to’ investment during times of extreme volatility."
Pascale Helyar
Superannuation and wealth expert
Frequently asked questions
If you're looking for low risk options to invest 200K for a short period, you could consider government bonds, cash and bond ETFs and high-interest savings accounts or term deposits.
If you're looking for low risk options to invest up to 50K for a few months or up to a couple of years, you could consider government bonds, cash and bond ETFs and high-interest savings accounts or term deposits..
At the time of writing, high interest savings accounts are offering relatively high interest rates of up to 5.4%. This paired with ultimate flexibility and a government backing (up to $250K), makes them one of the best shot-term investments right now.
A product that can turn your 10K into 20K is one delivering a return of 100%, which is extremely high performing. The only investment products that can offer such a high return quickly are also highly risky. These include penny stocks and cryptocurrencies.
Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments.
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