Where to park your home deposit before the spring property season

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.
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.
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.
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Promoted
Save
- Maximum rate
-
4.50
%
p.a.
(for $0 to $250,001)
- Standard rate
-
4.50
%
p.a.
(for $0 to $250,001)
- No deposit or withdrawal conditions
- No minimum balance to earn interest
- Instant set up and zero monthly account fees
- Standard rate
-
Balances from $0: 4.50% p.a.
Balances from $250,001: 3.75% p.a.
Balances from $5,000,001: 0.00% p.a.
- Maximum rate
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-
- Maximum rate conditions
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n/a
- Interest paid
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Monthly
- Account fee per month
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$0.00
- Access
-
-
- Kids ages
-
-
- Minimum balance
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$0.00
- Other restrictions
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Must be linked to a Everyday Account with AMP Bank GO.
- Other benefits
-
Up to 99 savings Spaces can be opened under the GO Save account with the ability to set goals and automatic transfers into spaces from the GO Save account.
Read reviews and learn more about AMP Bank GO savings accounts
Go to site
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Mozo experts choice awards won:
- Kick Start Savings - 2025
- Highly Commended SMSF Savings Bank - 2025
High Interest Savings Account
- Maximum rate
-
5.15
%
p.a.
(for $0 to $250,001)
- Standard rate
-
3.70
%
p.a.
(for $0 to $250,001)
- 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
- Standard rate
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Balances from $0: 3.70% p.a.
Balances from $250,001: 3.00% p.a.
- Maximum rate
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Balances from $0: 5.15% p.a.
Balances from $250,001: 3.00% p.a.
- Maximum rate conditions
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Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Interest paid
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Monthly
- Account fee per month
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$0.00
- Access
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Internet banking
- Kids ages
-
-
- Minimum balance
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$0.00
- Other restrictions
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Must link to a transaction account. Minimum age for applying from a Rabobank Online Savings Account is 18 years.
- Other benefits
-
-
Read reviews and learn more about Rabobank savings accounts
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Life - 18-29 years old
- Maximum rate
-
5.00
%
p.a.
(for $0 to $30,000)
- Standard rate
-
0.40
%
p.a.
(for $0 and over)
- $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.
- Standard rate
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Balances from $0: 0.40% p.a.
- Maximum rate
-
Balances from $0: 5.00% p.a.
Balances from $30,000: 4.50% p.a.
- Maximum rate conditions
-
Make 5 eligible card purchases per month with a Westpac Choice account and min 1 eligible deposit and account balance must not fall below $0 and should have higher balance on the last business day than at the beginning of the month in Life savings account.
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
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Branch access, Phone banking, Internet banking
- Kids ages
-
18 - 29
- Minimum balance
-
$0.00
- Other restrictions
-
Must hold a Westpac Choice transaction account.
- Other benefits
-
-
Read reviews and learn more about Westpac savings accounts
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Savings Maximiser
- Maximum rate
-
5.00
%
p.a.
(for $0 to $100,000)
- Standard rate
-
0.05
%
p.a.
(for $0 and over)
- Zero ING fees to pay
- Move money easily via app
- Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^
- Standard rate
-
Balances from $0: 0.05% p.a.
- Maximum rate
-
Balances from $0: 5.00% p.a.
Balances from $100,000: 0.05% p.a.
- Maximum rate conditions
-
For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
-
Phone banking, Internet banking
- Kids ages
-
-
- Minimum balance
-
$0.00
- Other restrictions
-
Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
- Other benefits
-
No minimum deposits or transactions needed to receive bonus rate when linked with Orange Everyday Youth Account
Read reviews and learn more about ING savings accounts
Go to site -
High Interest Save Account
- Maximum rate
-
5.00
%
p.a.
(for $0 to $1,000,000)
- Standard rate
-
0.00
%
p.a.
(for $0 and over)
- 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
- Standard rate
-
Balances from $0: 0.00% p.a.
- Maximum rate
-
Balances from $0: 5.00% p.a.
Balances from $1,000,000: 0.00% p.a.
- Maximum rate conditions
-
Welcome bonus rate for new customers for the first 4 months, when bonus conditions are met. Reverts to 4.60% bonus rate. Deposit $500 per month to earn bonus interest, payable on total savings up to $1,000,000.
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
-
Internet banking
- Kids ages
-
-
- Minimum balance
-
$0.00
- Other restrictions
-
Account can only be opened through iOS or Android app, but may be accessed through internet banking.
- Other benefits
-
-
Read reviews and learn more about ubank savings accounts
Go to site -
Savings Accelerator
- Maximum rate
-
4.95
%
p.a.
(for $150,000 to $500,000)
- Standard rate
-
2.35
%
p.a.
(for $0 to $50,000)
- No monthly deposit requirements or lock-in terms
- No ongoing fees
- Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^
- Standard rate
-
Balances from $0: 2.35% p.a.
Balances from $50,000: 3.25% p.a.
Balances from $150,000: 4.20% p.a.
Balances from $5,000,000: 0.00% p.a.
- Maximum rate
-
Balances from $0: 3.10% p.a.
Balances from $50,000: 4.00% p.a.
Balances from $150,000: 4.95% p.a.
Balances from $500,000: 4.20% p.a.
Balances from $5,000,000: 0.00% p.a.
- Maximum rate conditions
-
New ING personal savings 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. Reverts to variable ongoing rate.
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
-
Phone banking, Internet banking
- Kids ages
-
-
- Minimum balance
-
$0.00
- Other restrictions
-
Must link to a transaction account
- Other benefits
-
-
Read reviews and learn more about ING savings accounts
Go to site -
Save
- Maximum rate
-
4.50
%
p.a.
(for $0 to $250,001)
- Standard rate
-
4.50
%
p.a.
(for $0 to $250,001)
- No deposit or withdrawal conditions
- No minimum balance to earn interest
- Instant set up and zero monthly account fees
- Standard rate
-
Balances from $0: 4.50% p.a.
Balances from $250,001: 3.75% p.a.
Balances from $5,000,001: 0.00% p.a.
- Maximum rate
-
-
- Maximum rate conditions
-
n/a
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
-
-
- Kids ages
-
-
- Minimum balance
-
$0.00
- Other restrictions
-
Must be linked to a Everyday Account with AMP Bank GO.
- Other benefits
-
Up to 99 savings Spaces can be opened under the GO Save account with the ability to set goals and automatic transfers into spaces from the GO Save account.
Read reviews and learn more about AMP Bank GO savings accounts
Go to site -
Life
- Maximum rate
-
4.50
%
p.a.
(for $0 and over)
- Standard rate
-
0.40
%
p.a.
(for $0 and over)
- $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.
- Standard rate
-
Balances from $0: 0.40% p.a.
- Maximum rate
-
Balances from $0: 4.50% p.a.
- Maximum rate conditions
-
Minimum one deposit and higher balance than at the beginning of the month
- Interest paid
-
Monthly
- Account fee per month
-
$0.00
- Access
-
Branch access, Phone banking, Internet banking
- Kids ages
-
-
- Minimum balance
-
$0.00
- Other restrictions
-
-
- Other benefits
-
-
Read reviews and learn more about Westpac savings accounts
Go to site
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^See information about the Mozo Experts Choice Savings Account Awards
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