Term deposits "a crucial refuge for investors and consumers"

Term deposits remain an important investment option for Aussies, particularly in light of the global financial crisis and volatility of the world's markets.

Alan Shields, director at RFi Intelligence, urged banks not to become "complacent" about the importance of this investment option.

He observed that the current financial and economic climate means that consumers are likely to continue to "flock to the safety of term deposits".

Figures from the organisation revealed that more than half of those who invest their cash in term deposits have an income of less than $70,000 before tax.

"Term deposits are still a crucial refuge for investors and consumers," Mr Shields asserted.

The expert explained that this is particularly true as Aussies look to lock away money following recent natural disasters and the uncertainty surrounding sovereign European debt.

Earlier this month, AMP chief executive Craig Dunn highlighted how attractive the safety of term deposits is when he claimed that consumers are unlikely to forgo using them even though many financial institutions are lowering their interest rates.

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