Term deposit outlook remains positive, says expert
Longer-term savers can expect to continue earning strong returns on their deposits this year, it has been suggested.
Canstar Cannex financial analyst Adam Beu noted that some banks have been attracting safe investors with rates of more than seven per cent for three to five-year terms.
"Banks are trying to lock people in for longer terms, which suggests the banks are expecting rates to go up more," said Mr Beu.
The comments may encourage more Aussies to compare term deposits in search of the best options. They come after research by Canstar Cannex revealed that cash deposits have delivered an average annual return more than 12 per cent better than that achieved by shares over the past three financial years.
According to Canstar Cannex data, the average rate for a one-year term deposit offered by the four major banks has been 5.6 per cent during the last three years against an average annual return of -6.6 per cent from the ASX 200 companies over the same period.
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