Where to park your home deposit before the spring property season

By Peter Terlato · · 4 min read
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Couple decide where to put home deposit

The Reserve Bank of Australia (RBA) was widely expected to cut rates at its latest monetary policy meeting. However, that decision did not come to pass. Some would-be homebuyers may be tempted to hold off on entering the market until further cuts are announced.

This strategy may prove worthwhile. Three of the Big Four banks currently forecast further cuts to the cash rate before the end of 2025. With the potential for borrowing costs to improve further and the busy spring selling season fast approaching, you may be wondering where to keep your deposit to maximise returns while you wait to buy.

Here’s how you can put your deposit to work while keeping it safe and accessible – and potentially earn enough interest to cover upfront buying costs like conveyancing fees and building inspections.

1. Put your deposit in a high interest savings account

One of the most accessible options for short-term savings is a high interest savings account. These accounts let you earn a competitive interest rate while keeping your deposit liquid in case you’re ready to buy sooner than expected.

According to Mozo’s database, a few banks currently offer bonus interest rates above 5.00% p.a. – but there’s usually a catch. Many of these types of high-earning accounts come with strict monthly conditions to unlock the top rate, such as:

  • Depositing a minimum amount each month
  • Making no or limited withdrawals
  • Growing the balance month-on-month
Pros Cons
Flexible access to funds
 Bonus rates are conditional
Competitive rates available
 Rates can drop if the RBA cuts the cash rate
Usually no account-keeping fees
 Temptation to dip into your deposit

Still, if you’re confident you can meet the monthly criteria and want your funds readily available, a high interest savings account could be a savvy option, particularly if you’re waiting for the spring property selling surge.

Compare high interest savings accounts

2. Lock in a short-term deposit for guaranteed returns

If you're after certainty and don’t trust yourself not to touch your deposit, a short duration term deposit could be a better bet. 

It’s worth noting, though, that even the best term deposit rates are typically lower than the top high interest savings accounts – so you're trading off higher potential returns for certainty and discipline.

Unlike savings accounts, term deposits offer a fixed interest rate for a set period – and that rate won’t be impacted by any RBA decision. With many of the top rates now found in shorter terms (3 to 6 months), they’re ideal for homebuyers waiting out the next rate cycle or watching the market for the right property.

According to Mozo, some of the best rates available right now include:

With a term deposit, your money is locked away – which can be helpful if you don’t want to risk spending part of your hard-earned deposit on other things.

Pros Cons
Fixed, guaranteed returns
 Funds are inaccessible without penalty
No risk of losing bonus interest
 May miss out on rising savings rates
Encourages saving discipline
 No compounding interest during the term

If you decide to roll over your term deposit upon maturity, you might consider a laddering strategy, where you split your funds into multiple term deposits of staggered durations (e.g. 3, 6 and 9 months). This can provide regular access to parts of your savings, while still benefiting from longer-term rates.

Compare term deposits

3. Alternative options for your deposit

While savings accounts and TDs are probably the safest places to store your deposit, there are alternative investment strategies you might consider if you’re comfortable with a bit more risk and you expect not to buy for 12 months or longer:

  • Exchange Traded Funds (ETFs): These track a basket of assets like shares or bonds and can offer higher returns than savings products, though they come with market volatility.
  • Offset account attached to a pre-approved loan: If you’ve already secured pre-approval and are close to purchasing, some lenders allow you to deposit your funds in an offset account, helping reduce interest from day one once your loan is activated.
  • Government-backed bonds or savings schemes: Less common but sometimes attractive for conservative savers. Options like the First Home Super Saver Scheme also exist, though they may not suit those looking to buy in the immediate term.

Don’t let your deposit sit idle

With another rate cut likely on the horizon and a tentative property market heading into spring, the coming months could be prime time for first-home buyers, upgraders and investors to get their financial ducks in a row.

Rather than leaving your house deposit in a low-interest transaction account, consider parking it in a high-yield savings account or locking in a short-term deposit. Even a few hundred dollars in earned interest could go towards legal fees, stamp duty, or moving costs.

And remember – every dollar your deposit earns now gives you a stronger financial footing when it's time to make your move.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 250 savings accounts using the filters.
Last updated 26 July 2025 Important disclosures
  • Promoted

    Save

    Maximum rate
    4.50 % p.a.
    (for $0 to $250,001)
    Standard rate
    4.50 % p.a.
    (for $0 to $250,001)
    Go to site
    • No deposit or withdrawal conditions
    • No minimum balance to earn interest
    • Instant set up and zero monthly account fees

  • High Interest Savings Account

    Maximum rate
    5.15 % p.a.
    (for $0 to $250,001)
    Bonus rate for the first 4 months from account opening
    Standard rate
    3.70 % p.a.
    (for $0 to $250,001)
    Go to site
    • Easy set up, online and mobile banking app
    • No fees, no minimum balance, no minimum monthly deposit and no minimum term
    • Kick start your savings with the 4 month introductory variable rate

  • Life - 18-29 years old

    Maximum rate
    5.00 % p.a.
    (for $0 to $30,000)
    Make 5 eligible card purchases per month with a linked Westpac Choice account, make one eligible deposit and grow the balance each month. Account balance must not fall below $0.
    Standard rate
    0.40 % p.a.
    (for $0 and over)
    Go to site
    • $0 monthly fees for account holders under 30 or full-time tertiary students
    • Separate spending and saving for simple money management
    • Use the debit card linked to your Choice account 5+ times per month for Spend&Save bonus interest on eligible purchases.

  • Savings Maximiser

    Maximum rate
    5.00 % p.a.
    (for $0 to $100,000)
    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Zero ING fees to pay
    • Move money easily via app
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • High Interest Save Account

    Maximum rate
    5.00 % p.a.
    (for $0 to $1,000,000)
    Welcome bonus rate for new customers for the first 4 months. Reverts to 4.60% bonus rate. Deposit $500 per month to earn bonus interest, payable on total savings up to $1,000,000.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • No monthly fees on any of your save accounts
    • Split your money with up to 10 Save accounts.
    • Set savings targets and track on the app

  • Savings Accelerator

    Maximum rate
    4.95 % p.a.
    (for $150,000 to $500,000)
    New customers who open an account after June 9 2025 receive an introductory bonus 0.75% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
    Standard rate
    2.35 % p.a.
    (for $0 to $50,000)
    Go to site
    • No monthly deposit requirements or lock-in terms
    • No ongoing fees
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • Save

    Maximum rate
    4.50 % p.a.
    (for $0 to $250,001)
    Standard rate
    4.50 % p.a.
    (for $0 to $250,001)
    Go to site
    • No deposit or withdrawal conditions
    • No minimum balance to earn interest
    • Instant set up and zero monthly account fees

  • Life

    Maximum rate
    4.50 % p.a.
    (for $0 and over)
    Minimum one deposit and higher balance than at the beginning of the month
    Standard rate
    0.40 % p.a.
    (for $0 and over)
    Go to site
    • $0 monthly fees for account 18 years or older
    • Separate spending and saving for simple money management
    • Use the debit card linked to your Choice account 5+ times per month for Spend&Save bonus interest on eligible purchases.
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^See information about the Mozo Experts Choice Savings Account Awards

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