Finding the best return on cash deposits has become increasingly difficult as interest rates sink to historic lows. As a result, investors who are seeking the relative security and simplicity of cash are finding that their cash deposits don’t provide the return they once did, with many looking for better ways to invest their cash.
While term deposits have traditionally been a way for investors to benefit from better interest rates compared to ‘at call’ bank accounts, they usually mean locking cash away for a period of time with a financial institution. Depending on the term, this can be anywhere from 1 month to 5 years and accessing your cash from term deposits before the end of the term can sometimes be difficult and costly.
AAA offers a competitive solution
With the BetaShares Australian High-Interest Cash ETF (ASX: AAA) investors receive the benefits of an investment that is accessible daily (subject to the normal ASX settlement cycle), with regular income from attractive interest rates, paid monthly.
The ETF can be bought or sold on the ASX just like any share so there is no need to open a bank account or lock your money away for extended periods of time.
Simple access to cash returns
AAA is structured simply. The ETF holds Australian dollars in bank accounts with several major Australian banks and pays attractive monthly income distributions.
Unlike bonds, bond ETFs or other fixed income investments the value of cash will not decline – in fact it will increase – in a rising interest rate environment.
BetaShares’ AAA ETF – a $1 Billion Fund
AAA reached a billion dollars in assets in November 2016, cementing its place as an attractive investment for investors looking to manage their cash holdings.