Expert recognises competitiveness of term deposits

Australian investors could be encouraged to look into bank terms deposits as a viable option following the recent comments of one industry expert.

Michael Cole, chairman of one of the country's most respected equity fund managers, recently claimed that his retail business is facing "intense" competition from bank term deposits, the Financial Standard reported.

The newspaper quotes the Platinum Asset Management expert as telling his recent AGM address: "While Platinum continues to attract positive retail net fund inflows, the competition from bank term deposits is intense.

"Bank deposits offer real rates of return of around four per cent per annum. This is similar to the projected returns of a balanced investment super fund but without an expected negative return every 4.6 years."

The comments could serve as an inspiration to a number of Australian investors to conduct further research into bank term deposits in order to see how such a product could boost their finances.

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