Australians 'will be hard to tempt away from term deposits'

The safety offered by term deposits may mean that it is difficult to persuade Australian investors to risk their money in shares, an expert has stated.

Simon McGrath, an analyst with Bell Potter, told Perth Now that there are record levels of savings in term deposits and bank accounts.

However, he asserted that low consumer and investor confidence levels mean that Aussies are unwilling to venture beyond the safety of these.

"Our real problem is perhaps shares as an asset class, and getting people to have confidence to dip their toe into that, that's going to be hard going forward," he stated.

His comments come after the stock market plunged four per cent earlier today, taking nearly $60 billion from the value of Australian stocks.

In an article for the Sydney Morning Herald published last month, personal finance journalist Annette Sampson asserted that term deposits are viewed as "solid and appealing" to cautious investors in the country who do not want to risk their capital.

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