Aussies 'should diversify term deposit investments'

People who use term deposits should try to ensure they have a range of different maturities and opt for longer terms when possible, an expert has stated.

David van Ryn, executive director of global capital markets at Westpac, told the Sydney Morning Herald that the majority of people in the country opt for short-term options and have funds rolling over regularly.

"What we say to clients is that they need to diversify their term-deposit holdings," he stated.

One of the benefits of going online to compare term deposits that are for longer periods is that Aussies may be able to find better interest rates.

This may be particularly important in light of recent developments that saw many banks in the country reduce rates on these accounts.

Earlier this month, the same publication reported that rates for some term deposits and online savings accounts have fallen by as much as 46 basis points.

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