'Mum and dad' stocks recommended

Australians looking to gain a steady return to put into their bank savings accounts could take up investing in a ‘mum and dad’ stock.

That is according to Clime Investment Management, which suggested that families can benefit from the low-risk stocks because they offer better returns on equity than the average option available, the Australian reports.

The company advised parents that brands such as Woolworths, BHP Billiton, National Australia Bank (NAB) and Telstra currently hold stocks which are most likely to make them some money to save for their children’s future or a rainy day.

Perennial Value managing director John Murray commented: "One of the reasons we like NAB is that its core competency for many years has been in business banking and we think this low point in the economic cycle is a good time to be buying cheaply into a bank with that sort of exposure."

However, the Herald Sun recently reported that consumers may need to compare term deposits as the big four banks have lowered interest rates on some of their fixed-term accounts, reducing returns for savers.

This article is brought to you by Mozo – Helping you compare term deposits