Aussies 'are choosing to save'

Demand for term deposits may be on the rise in light of Treasurer Wayne Swan's recent assertion that Aussies are opting to save their money.

He cited figures from the Australian Bureau of Statistics that indicated household savings are currently at the second highest level in recorded history, reports the Herald Sun.

A Nielsen report recently indicated that half of those polled were saving spare cash after spending on essentials such as utilities and groceries.

Mr Swan forecast that there would be a strong rebound in the economy, noting that the current dip in sales is down to the "cautious" mentality that is pervasive in the country.

"We do have a cautious consumer and I think that is partially a legacy of the global financial crisis … people are choosing to save," he asserted.

This comes after Steven Wright, director of fixed-interest with RBS Morgans, suggested that longer term deposits may provide investors with better yields, reported

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