Small term deposit rates 'better than nothing'

Savers should be wholly focused on keeping hold of their cash in the current financial climate – and they could do a lot worse than parking it in a bank term deposit, the Sydney Morning Herald asserts.

Investment expert David Koch writes that while returns on bank term deposits may be lower than usual, they offer a great deal of safety that shouldn’t be ignored while the global economy continues to tank.

This will be particularly true for retirees, who have likely been shaking their heads miserably as each consecutive interest rate cut from the Reserve Bank has been announced.

And while mortgage trusts and bank shares have proved a favourite for pensioners in the past, bank term deposits are now coming up trumps.

"Your capital is guaranteed by the federal government. In this environment I really don’t care what the interest rate return on these investments are, at least your capital is guaranteed," Mr Koch concludes.

Fellow Herald contributor David Potts also advises that for those who aren’t afraid of a bit of risk and are prone to a spot of greed, investment companies may deliver some seriously high returns.

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