The app - which focuses on micro-investing in bonds and other defensive assets - previously featured a return target of 3.00% p.a.
With savings accounts and term deposits regularly nudging this benchmark, and bond yields skyrocketing, Blossom co-founder Gaby Rosenberg (pictured below) said the app still has a place in an investor's arsenal.
"Blossom is providing 3.5% per annum in consistent, targeted returns posted to our entire customer base daily," Ms Rosenberg told Savings.com.au.
"Blossom focuses on providing flexibility. No maximum investment amounts, no exit fees, no welcome or bonus rates prioritising new customers over existing, and no minimum transfers in and out to remain eligible."
This is different from many of the top-yielding savings accounts, which generally have deposit caps of anywhere from $30,000 to $250,000, and have eligibility criteria to attain the top interest rates.
However, Blossom is an investment app and is not backed by the regulator's $250,000 deposit guarantee like bank accounts or term deposits.
Also, as noted on its website, the 3.5% p.a. target rate of return is not guaranteed - distributions to investors may be lower.
That said, Blossom has developed features similar to many seen in neobanks' apps.
"We’ve developed integrated savings goal functionality to help customers visualise a savings goal and watch it grow while their funds blossom," Ms Rosenberg said.
"We have instant payments and round-ups to help everyday Aussies reach their financial goals faster."
An exciting time to save?
Bond yields have largely risen off the back of a rising cash rate target and the Reserve Bank withdrawing stimulus via its quantitative easing program in February.
Ms Rosenberg said this was a good thing for investors.
"Blossom’s fund manager, Fortlake Asset Management, view the public sector exiting private asset markets as a significant positive for Blossom and the broader fixed income asset class," she said.
"The RBA and other central banks have been non-commercial buyers of assets across the spectrum. This diminished the prospects for asset managers and asset allocators.
"With private markets now determining the requisite price for bonds, this has provided value enhancing opportunities for asset managers."
Blossom launched in mid-2021 and its assets are actively managed by Fortlake Asset Management - Gleneagle Asset Management is the responsible entity.
Since its launch, it has amassed more than 6,300 users and $23 million in funds under management.
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4.40% p.a. | 5.75% p.a. Intro rate for 4 months then 4.40% p.a. | $980 | 4 months | $0 | $250,000 | $0 | $0 | $0 | Featured |
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0.55% p.a. Bonus rate of 4.95% Conditions apply. | 5.50% p.a. | $1,128 | – | $0 | $100,000 | $1,000 | $0 | $0 | |||||||||
1.20% p.a. Bonus rate of 4.20% Conditions apply. | 5.40% p.a. | $1,107 | – | $0 | $250,000 | $1,000 | $0 | $0 | Featured |
| |||||||
4.75% p.a. | 5.35% p.a. Intro rate for 4 months then 4.75% p.a. | $1,001 | 4 months | $0 | $249,999 | $0 | $0 | $0 | Featured |
| |||||||
0.50% p.a. Bonus rate of 4.85% Conditions apply. | 5.35% p.a. | $1,097 | – | $1 | $50,000 | $500 | $1 | $0 |
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0.10% p.a. Bonus rate of 5.00% Conditions apply. | 5.10% p.a. | $1,044 | – | $0 | $250,000 | $200 | $0 | $0 | No monthly fees |
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0.05% p.a. Bonus rate of 4.95% Conditions apply. | 5.00% p.a. | $1,023 | – | $1 | $250,000 | $20 | $0 | $0 |
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0.05% p.a. Bonus rate of 5.45% Conditions apply. | 5.50% p.a. | $1,128 | – | $0 | $50,000 | $1,000 | $0 | $0 | For customers aged 14-35 years | ||||||||
0.05% p.a. Bonus rate of 5.30% Conditions apply. | 5.35% p.a. | $1,097 | – | $0 | $250,000 | $1,000 | $0 | $0 |
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