Aussies 'are increasingly turning to term deposits'

By Mozo ·

Aussies are increasingly pouring their money into term deposits, rather than making risky investments.

Investment Trends' latest financial planning survey has indicated that around 29 per cent of financial advisers are instructing new clients to take on safer assets – which is up from 26 per cent in April 2012, the Financial Review reports.

Around 20 per cent of this number specifically channelled their money into a term deposit.

Senior analyst at Investment Trends Recep Peker said: "These levels are significantly higher than June last year, when 18 per cent of new client investments were placed in cash and term deposits."

These figures tie in with comments that were recently made by investments manager at RaboDirect Australia and New Zealand Tim Hewson, who told Money Management that term deposits are proving to be more attractive to younger people.

Banks have been offering high rates on their deposits in recent months as competition in the market has intensified.

However, some economists have warned that interest rates attached to the products will start to fall in due course.

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