Slow profits at Westpac but term deposits stay strong

Aussies appear to remain committed to term deposits as Westpac announced a two per cent dip in its third quarter profits yet observed growth in these savings accounts.

Data released by the financial institution revealed that across the nation, deposits were up $2.4 billion, with term deposits making up a significant proportion of the growth.

Gail Kelly, chief executive of the bank, commented: "The June quarter 2011 saw the operating environment become more subdued with consumers increasingly cautious."

Over the third quarter of the year, Westpac reported a two per cent drop in profits.

Term deposits were recently highlighted as an attractive investment option for cautious Aussies by Synchron director John Prosser, who told Investor Daily that this is partly down to a lack of confidence in the alternatives.

He asserted that many are "not in any hurry" to switch and are comfortable settling for the 6.5 to 6.8 per cent interest rates that their term deposits offer them.

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