Compare term deposits, expert advises

Australian banks are offering some "great deals" on term deposits at the moment, an expert has observed.

John Kavanagh, a finance writer for the Sydney Morning Herald, said that the current term deposit market is "very fluid, with lots of special offers".

He noted that many Australians are unaware of the deals that are available and advised people to be quick in taking advantage of offers that available for limited periods.

Mr Kavanagh said that in December, Westpac launched one of the best recent offers of eight per cent on a five-year term deposit. This was replaced this month with an offer of 7.25 per cent.

He said that the best rate in the market is now offered by Bank of Cyprus at 7.85 per cent for five years.

Shane Oliver, chief economist and head of investment strategy at AMP, told Mr Kavanagh: "Inflation should continue at a rate of 2.5 per cent to three per cent over the next few years," he says. "An eight per cent term deposit would give you a real rate of return of five per cent or more with very low risk."

Earlier this month, Westpac announced high profit figures for the end of last year, proving that it is still a popular choice among Australians despite its controversial mortgage rate rises in December.

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