Term deposit 'resolution' suggested for New Year

Wednesday 22 December 2010

Article by Mozo

Australian savers and investors have been urged to compare term deposits and consider their options this New Year.

Term deposit 'resolution' suggested for New Year

Sydney Morning Herald finance writer John Wasiliev argued that Australians should use the opportunity of a new calendar year to reconsider their investment plans.

"One reason why such reviews can be useful at this time of the year is because you can do something about a strategy that may not be going that well while there is still plenty of the financial year remaining," he said.

Indeed, Mr Wasiliev noted that the end of the calendar year also marks the halfway point of the financial year, meaning that people still have six months of the 2010-11 financial year to implement new savings plans.

This could include a change of term deposit, for example, as the commentator suggested making a New Year's resolution to get good rates when an existing, shorter period term deposit is rolled over.

"Banks have been known to invite investors to roll a deposit over for a 'similar term' without pointing out that same term does not necessarily mean the same higher interest rate," said Mr Wasiliev.

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