Investing overseas could be a smart move
Aussies have found it difficult to secure significant returns when investing their money overseas in recent times.
This is because the strength of the Australian dollar has increased considerably in the past few years and so domestic packages such as term deposits have been more appealing.
People who own one of these funds would have been hoping that their banking provider would have raised the interest rates attached to their term deposits, after each major bank raised their home loan rates. Unfortunately, few institutions have been as fast to increase the rates of their savings and investments packages.
However, according to financial adviser at Prescott Securities Alex Butler, it may not be a bad idea to stash some cash abroad, regardless of the high value of the dollar.
He told News Limited that those who choose to invest overseas now will receive a nice bonus return when the Aussie dollar returns to its long-term average.
"Investing in international companies to diversify a portfolio can be appealing," he was quoted as saying.
Have a question about term deposits? Ask the money gurus at Mozo Answers.