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."

GabyRosenberg.jpeg

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.

Update resultsUpdate
Filters
BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkComparePromoted ProductDisclosure
5.00% p.a.
5.35% p.a.
Intro rate for 4 months
then 5.00% p.a.
$1,036
4 months
$0
$249,999
$0
$0
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
 Disclosure
4.70% p.a.
5.40% p.a.
Intro rate for 4 months
then 4.70% p.a.
$998
4 months
$250,000
$99,999,999
$0
$0
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
 Disclosure
0.00% p.a.
Bonus rate of 5.50%
Rate varies on savings amount.
5.50% p.a.
$1,128
–
$0
$99,999
$0
$0
  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • No monthly or international fees on any of your transactions.
 Disclosure
1.00% p.a.
Bonus rate of 4.20%
Rate varies on savings amount.
5.20% p.a.
$1,065
–
$0
$99,999,999
$1,000
$0
  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
0.55% p.a.
Bonus rate of 4.95%
Rate varies on savings amount.
5.50% p.a.
$1,128
–
$0
$99,999
$1,000
$0
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions. Grow your savings balance each month
 Disclosure
  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • No monthly or international fees on any of your transactions.

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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