An Alternative to Term Deposits?

Homebuyers are always looking to get a better return while saving up for a home loan deposit . Its therefore natural that some are seeking alternatives to traditional savings accounts and term deposits offered by Banks. One such avenue is called “Fixed Income Platforms”, they have become popular, especially for their ease of use.

Blossom App offers a unique solution: micro-investing in "fixed income" assets like corporate bonds and government securities. These investments were previously only available to institutions and wealthy individuals. 

Led by young entrepreneurial sisters Gaby and Ali Rosenberg (and backed by Gleneagle Asset Management), Blossom App is a fintech app designed to make fixed-income investing accessible to everyday Australians who want to supercharge their savings. Unlike traditional savings accounts and term deposits, Blossom offers a targeted return of 5.95% p.a. net of fees, with the potential for this rate to increase as bond yields rise.

With no minimum deposits, term the funds are locked away for or account fees to worry about, Savers will find that Blossom App less restrictive than the traditional bank products - especially in the case where you have to access your money sooner than expected because you found that dream house and they accepted your offer!   However, it's important to remember that Blossom is not a savings account. Your money is invested in assets like corporate bonds, government securities, and mortgage-backed securities, which were previously only available to institutional investors.

Blossom also keeps things simple with fees. Unlike other investment platforms that may charge withdrawal, performance, or exit fees, Blossom has just one: a 1% annual management fee. And that fee is only charged after you've earned your target return. In other words, Blossom only gets paid when you make money.  

Cool things to consider about Blossom:

*Daily Earnings + Return Gets Componded every day!

*Targeted return of 5.95% p.a. (net of fees) - potentially higher than savings accounts and term deposits.

*Lower risk than shares and cryptocurrency.

*No minimum investment - start with any amount.

** They do have another product that aims for a higher return (approx 7%), but withdrawals can only be done every calender quarter**

Things to consider:

*Blossom is not a savings account or term deposit - it's an investment with some risk.

*Not government guaranteed - unlike bank deposits.

*Investments are managed by a team with experience in fixed income.

Blossom App definitely is an alternative and convenient way for everyday Australians to invest in fixed income assets. But a a reminder, this article is an opinion from us only without input from Blossom, so - like most things investment wise, you need to do your research before you invest.