Interest rates on term deposits expected to drop

By Mozo ·

Aussies may have to spend more time comparing term deposits to get the best interest rates in the future as one expert has claimed rates are expected to decline in the next six to 12 months.

Peter Dorrian, head of global wealth management at the Pacific Investment Management Company (PIMCO), noted that five-year term deposits have already shown signs of decline, reports Investor Daily.

However, he observed that the most popular accounts are those with a three-month term, which may mean there is still plenty of time for Aussies to take advantage of the good rates.

"Our view is that term deposit rates will start to come off quite significantly," Mr Dorrian stated.

If his forecast proves to be correct, those considering investing their cash may want to compare term deposits online to ensure they get one suited to their needs and that will provide them with a good yield.

This comes after Steven Wright, director of fixed-interest with RBS Morgans asserted that those looking to make the most from their money should consider a longer term deposit, reported thebull.com.au.

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