Australian Government — Exchange-traded Treasury Bonds (10yr)

The lowest-risk fixed income, backed by the Australian Government, tradeable on the ASX.

4.99%

p.a.

9.3 Excellent

Product: Bond
Issuer: Australian Government
Term: 120 months
Min deposit: $100
Max deposit: No maximum
Interest paid: Semi-annually
Monthly fee: $0
Govt guarantee: No

Pros

Backed by the Australian Government
Tradeable on the ASX, sell before maturity
Semi-annual interest payments
Low entry cost

Cons

Lower yield than top term deposits
Capital value moves with rates if sold early
Not covered by the $250k deposit guarantee (but sovereign-backed)

Overview

Exchange-traded Australian Government Bonds (AGBs) currently yield around 4.99% p.a. (10-year), with coupons paid every six months. They're the lowest-risk fixed income available, backed by the sovereign, and can be bought and sold on the ASX.

Things to check

If you sell before maturity, the price depends on prevailing interest rates, so the capital value can move up or down.

Rates, fees and product details are indicative, were accurate at the last update, and are subject to change. Confirm the current rate, terms and eligibility with the provider before applying.