Younger investors and SMSFs are increasingly allocating more of their investments to high yield cash accounts amid market volatility.
Between 2023 and 2025, investor allocations to term deposits and high-yield savings rose from 9 per cent to 11 per cent, according to Investment Trends, as newer investors are using cash as a buffer, while SMSFs prioritise stability and liquidity . This trend is particularly prevalent among younger investors between 18-24, where allocations rose from 14 per cent to 19 per cent.
This shift is also evident in CommSec’s Commonwealth Direct Investment Account (CDIA), which has seen balances grow 14 per cent since mid-2024 as investors seek flexibility to act quickly when markets change.
CommSec has responded to the trend by launching CommSec Notice Investor, a high-interest savings account to help Australians earn more on surplus cash while preserving the flexibility to move in and out of markets.
While the CDIA serves as the “working float” for trades, CommSec Notice Investor is designed to make surplus funds work harder.
“For investors, cash is no longer a passive parking spot - it’s part of their portfolio strategy. CommSec Notice Investor will empower our customers to take a more strategic approach to cash management alongside the CDIA - combining competitive returns with the convenience of our integrated digital platforms,” said James Fowle, EGM, CommSec.
CommSec Notice Investor offers a competitive, variable interest rate with no balance restrictions, calculated daily and paid monthly.
Key features of CommSec Notice Investor
- Flexible notice periods: Choose between 2-day or 7-day notice periods to suit your investment needs.
- Uncapped investment potential: No balance restrictions, allowing customers to boost savings for as long as funds remain in the account.
- Integrated digital experience: Manage notices and account balances across CommSec and CommBank platforms, with real-time portfolio views and breakdowns.
- No ongoing fees: Free to open and maintain, with transparent terms and conditions available online.
- Expanded eligibility: Available to retail and business banking customers, including SMSFs, aged 18+, Australian residents, and holders of an active CDIA.
The launch of the CommSec Notice Investor account builds on a number of recent initiatives from CommSec to enhance the customer experience, including:
- A new International Order Pad: Expanding investment opportunities by offering customers access to 60 per cent of the world's stocks through the CommSec website.
- AI-generated summaries: Helping customers stay informed with less effort by delivering AI-generated summaries for ASX company announcements in the CommSec app.
- Morningstar premium research: Providing the opportunity to receive timely insights and research from analysts covering over 2,000 Australian and US stocks.
“As Australia’s leading online broker, we’re committed to leveraging the latest technologies and delivering outstanding customer experiences that empower more Australians to build their wealth. The newest enhancements to the CommSec platform are a testament to that ongoing commitment,” said James Fowle.
Existing CommSec CDIA customers can open a CommSec Notice Investor account online in minutes. For more information, visit www.commsec.com.au/noticeinvestor.
