Term deposit with high interest rates 'tempt Aussies'

With high interest rates available on term deposits, Aussies may be increasingly drawn to this safe way to store their money.

This is according to AMP Capital's head of retail distribution Ben Harrop, who told Financial Standard that people are "naturally cautious" following the global financial crisis.

He said fixed term deposits interest rates are increasingly popular options.

"Term deposit rates at 6.5 per cent are an attractive place to be," Mr Harrop stated.

The expert suggested that until the market starts to show signs that it has "some direction" people are likely to continue to invest their money in safe options, adding that he expects this to be the case for the duration of 2011.

Noel Whittaker, director of Whittaker Macnaught, voiced a similar view in a piece for Business Day earlier this month, asserting that term deposits offer a degree of "certainty" to savers that shares and other investment options do not.

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