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Interest rate securities

Bring lower-risk stability and a potentially more reliable source of income to your investment portfolio.
 

Access your ANZ Share Investing account

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Create stability in 
your portfolio

Interest rate securities can be one of the best ways to add stability to your portfolio.

When you buy an interest rate security, you're lending money to the issuer (the Australian government or a company).

In return, you get regular interest payments as well as the eventual repayment of the issue price.

Depending on the security, the interest can be floating or fixed rate. Similarly, the issue price can be repaid either on demand or at a predetermined date. 

Most Australian interest rate securities are listed on the ASX. They offer predictability alongside the transparency and liquidity of the Australian sharemarket, making them a useful tool in creating a successful portfolio. 


Details at a glance
 

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May be suitable if you:

  • are looking for a reliable source of income
  • want exposure to corporate or Australian Government bonds
  • want to add a defensive tilt to your portfolio

Minimum initial investment:

$500

Brokerage starting from:

$19.95

More rates and fees


Bonds for security
or returns

Australian Government bonds

As the name implies, Australian government bonds are issued by the government. They're a more secure investment choice with a low credit risk and can be issued for a time period for up to 15 years. Government bonds tend to be issued with a fixed interest rate. The market for government bonds is large, so the liquidity and security of the market make them an attractive prospect to many investors. 

Corporate bonds

There are a wide range of corporate bonds listed on the ASX. The terms of corporate bonds can differ a lot, so it's important to have a thorough understanding of the terms before you decide to invest. Corporate bonds also tend to be much less liquid than government bonds, although as a riskier option, they have the potential to pay higher returns.

Other ways to invest

Exchange Traded Funds (ETFs)

Buy the market, instantly diversify and enjoy a simple and relatively low-cost way to build your investment portfolio.

IPOs

Access newly-listed companies and securities such as hybrids through Initial Public Offerings.

mFunds

Enjoy the time savings and performance potential of professionally-managed investments.

Finding the right balance

Succesful investors will have a mix of growth and defensive assets. Defensive assets are low risk and less volatile than growth assets. Growth assets operate with higher risk and the potential for higher returns.

Bonds can be an excellent way to add defensive strength to your portfolio. Some bonds will actually perform well when parts of the market are struggling, making them a valuable asset.

 


Key considerations

Benefits

  • Security
    Interest rate securities are considered a lower risk investment compared to Australian shares.
  • Stable and regular income
    As a lender, you're entitled to regular interest payments.
  • Liquidity
    Most interest rate securities are easy to buy and sell, especially Australian Government bonds.
  • Diversification
    Defensive assets such as interest rate securities can be an essential part of a diversified portfolio.
  • Choice of maturities
    Choose interest rate securities to suit your planned investment time period.

Risks

  • Interest rate risk
    Whether you have a fixed or floating interest rate, a drop in interest rates can have a negative impact on either the value of your securities or the income you receive.
  • Company performance
    The value of your securities may be affected by changes in the company's share price.
  • Conversion by the Australian Government
    Government bonds can be converted into Treasury Bonds or Treasury Indexed Bonds, with as little as three months' notice. These may continue to pay you interest and upon maturity, they can't be traded on the ASX.

How to apply

  1. Apply for an ANZ Share Investing account
  2. Verify your identity
  3. Deposit funds in your account
  4. Start trading!
 

Apply now

 

Details to have handy

  1. Current Australian driver’s licence, and
  2. Australian birth certificate or Australian citizenship certificate, or
  3. Australian passport (current or one that has expired within the last two years) or current foreign passport including the signature page.

Not opening an individual account? Complete the application and we'll let you know what documentation you need to provide.

 

   

Why choose us?

  • Flexible trading platforms that let you trade on the go
  • Powerful trading tools, advanced charting and trusted research
  • Trade with your own funds or borrow from ANZ
  • Seamless integration with ANZ Internet Banking and ANZ Investment Lending
  • Immediately trade sale proceeds prior to settlement
  • Earn Qantas Pointsdisclaimer when you trade
   

Contact us

  

1300 658 355

Mon-Fri 8.00am to 8.00pm (Sydney time)

  

Send us an email

   

The ANZ Share Investing service is provided by CMC Markets Stockbroking Limited ABN 69 081 002 851 AFSL 246381 (CMC Markets Stockbroking), a Participant of the Australian Securities Exchange (ASX Group), Sydney Stock Exchange (SSX) and Chi-X Australia (Chi-X) at the request of Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (ANZ). Disclosure documents relating to ANZ Share Investing products and services are available on anzshareinvesting.com or by calling us on  1300 658 355. ANZ is the issuer of the ANZ Cash Investment Account, ANZ Share Investment Loan and ANZ V2 PLUS Account. The obligations of CMC Markets Stockbroking are not guaranteed by ANZ. CMC Markets Stockbroking and ANZ are not representatives of each other. The information has been prepared without taking account of your objectives, financial situation or needs. Before acting upon any advice, you should consider whether it is appropriate for you having regard to your objectives, financial situation and needs.

The ANZ Share Investment Loan is provided by Australia and New Zealand Banking Group Limited ABN 11 005 357 522, AFSL 234527 ("ANZ").

An ANZ Share Investment Loan is subject to investment risks, including possible losses in income, capital invested and additional liability for the loan. We therefore strongly advise you talk to your financial planner, tax adviser and/or stockbroker and ensure you understand the risks, the specific tax implications as well as the legal and financial ramifications of a share investment loan.

ANZ does not give personal advice about the ANZ Share Investment Loan. This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. ANZ recommends that you read the ANZ Share Investment Loan Product Disclosure Statement and the ANZ Investment Lending Terms and Conditions which are available at wealth.anz.com/investments/investment-loans or by calling the Client Services Team on   between 8.00am and 6.00pm (Sydney time) during ASX trading days before deciding whether to acquire, or to continue to hold the product.

All ANZ Share Investment Loan applications are subject to ANZ’s credit approval criteria. Fees and charges apply and are available at wealth.anz.com/investments/investment-loans or by calling the Client Services Team on  between 8.00am and 6.00pm (Sydney time) during ASX trading days.

You must be a member of the Qantas Frequent Flyer program in order to earn Qantas Points. A joining fee may apply. Membership and points are subject to the terms and conditions of the Qantas Frequent Flyer program. ANZ Share Investing customers can earn 1 Qantas Point per AU$3 spent on  brokerage fees on shares, ETFs, interest rate securities, warrants and options by providing your Qantas Frequent Flyer number to ANZ Share Investing prior to trading. For shares, ETFs, interest rate securities, warrants and option trades, this offer only applies to trades executed where orders are placed under ANZ Share Investing retail User IDs on ANZ Share Investing retail accounts.

Qantas Points will be calculated based on the brokerage amount on trades involving shares, ETFs, interest rate securities, warrants and options. GST is included, for the purpose of calculating Qantas Points earned. Qantas Points cannot be earned on phone trades, trades placed through IRESS, SMS contract note confirmation fees or hard copy contract note fees, trades executed or fees charged for Off Market Transfers and miscellaneous trading fees which may include stamp duty, transaction fees or exchange related fees. 

Only the User ID under which the order is placed is entitled to earn Qantas Points. To accrue Qantas Points against your User ID, you must have entered your Qantas Frequent Flyer number on the ANZ Share Investing platform prior to placing an order.

Please allow up to 10 business days for your Qantas Points to be credited to your Qantas Frequent Flyer account. 

ANZ Share Investing reserves the right to terminate or vary this offer at any time, without notice.

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