Fixed Interest Products

Investment in fixed interest products can be made in either the primary (new issues) or secondary market. The primary market is where a borrower first issues a security. The secondary market is where existing fixed interest securities are traded.

Commonwealth Government Bonds
Bonds issued and guaranteed by the Commonwealth Government. These bonds are often referred to as “risk free” investments and have a “AAA” credit rating. Interest is normally paid half yearly.

Semi-Government Bonds
Bonds issued and guaranteed by the various States of Australia. Interest is normally paid half yearly.

Term Deposits
Term Deposits with banks or other financial institutions (such as Credit Co-op's or Building Societies) are set for fixed terms, from 1 month to 5 years, and are guaranteed by the particular institution.
Currently, the Commonwealth Government guarantees your first $250,000 Term Deposit with any Australian ADI.
Term Deposits are not transferable.