Australians have a positive outlook, despite the drop in term deposits.

Australians are optimistic of the year ahead but low interest rates is not making everybody happy, particularly those with term deposits.

The Westpac Melbourne Institute Index of Consumer Sentiment for January shows a rise to 100.06 points, any reading over 100.00 indicates optimists outnumbering pessimists. The results show that Australians are confident of a positive year ahead for the economy.

Although levels were below 100.00 points in 2012, there is disappointment amongst the likes of the RBA who expected a much higher level of optimism following their December rate cuts.

The sub index measuring family finance showed a drop of 1.2 percent over the next twelve months. St.George chief economist Hans Kunnen believes recent interest rate drops may be the problem, "We have people who rely on term deposits and that could be what has swung people into being not as well off as they thought."

The Australian Securities and Investment Commission advises that term deposits usually have higher rates than a regular transaction account and is a safe investment as there is virtually no risk of losing your money. The ASIC also further recommends that investors should shop around and do a term deposit comparison to find the possible rates when selecting an account, so to maximise the return on their investment.

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