Cautious investors 'unwilling to abandon term deposits'

Term deposits are currently viewed as a safe way to save money by many investors in Australia, an expert has suggested.

Synchron director John Prossor, told Investor Daily that Aussies are still reluctant to embrace other options, such as equities.

"We're … finding they're not in any hurry for that. They say: 'No thanks, I'll stay in my term deposit.' The confidence is just not there," he explained.

The expert noted that those who compare term deposits can get a return of between 6.5 per cent and 6.8 per cent on their investment.

Earlier this month, personal finance journalist Annette Sampson said in a piece for the Sydney Morning Herald that there is "something solid and appealing" about term deposits.

She noted that the investment option is proving a popular choice in the post-global financial crisis climate as people are unwilling to risk their hard-earned money in the hope that they will secure a larger payoff.

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