Term deposits 'a better option' than QR National float

Term deposits offer a more secure investment option than the current $6 billion share market float by coal rail freight business QR National, one commentator has said.

Alex Tilbury of National Features, hosted by news.com.au, noted that market analysts are generally unsure about how QR National will trade both in the short and long-term.

Indeed, he suggested it may be more worthwhile for investors to compare term deposits and other standard products rather than putting their money in the company.

"The 145-year-old business is being sold as a growth stock, with a dividend yield of only 3.3 per cent," observed Mr Tilbury.

"Investors chasing security and interest could do better with a term deposit or savings account paying up to 6.5 per cent."

The QR National share market float is the second-biggest in Australia's history, as the company is being sold off by the Queensland Government.

According to independent analyst Roger Montgomery, who spoke to National Features, QR National is being promoted as a growth story in order to make up for its "miserly" yield.

This article is brought to you by Mozo – Helping you compare term deposits