Investors 'clamouring' for bank term deposits

Monday 11 May 2009

Article by Mozo

Bank term deposits are becoming a favoured investment vehicle for Aussies who are decidedly sceptical about the health of the stock market, PM Capital’s investment chief has announced.

However, while Paul Moore recognised that bank term deposits can offer a safe and comfortable investment opportunity, those willing to try their hand on the stock market could reap far higher returns, particularly with many companies being historically undervalued.

Investor Daily reports that Moore identified bonds as an attractive option for those who were keen to stay away from stocks.

"Term deposits are offering about 2.9 per cent, but government guaranteed bank debt is also guaranteed and yet you can get an extra 80 to 150 basis points on government guaranteed bank debt," he said.

Moore’s comments echo those of the FIIG Securities managing director Jim Stening, who told the Courier Mail last month that bonds may be a better bet than bank term deposits.

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