Term deposits 'a good low-risk option'

Term deposits may prove an attractive option to those who want to benefit from secure investments, an expert has suggested.

In a question and answers piece for Business Day, director of Whittaker Macnaught Noel Whittaker observed that money put into shares can leave Aussies open to capital loss.

While he noted that there are some drawbacks those considering going online to compare term deposits need to consider, such as the potential to suffer from inflation, he asserted that they are a relatively secure place to store funds.

"Money in term deposits gives you certainty," he stated, adding that it is crucial to choose investments that suit individual risk profiles.

"It is important to sleep soundly at night," he said.

According to a study conducted recently by CoreData, Aussie savers have $560 million deposited in bank accounts and other institutions, up $200 million from the amount recorded in 2007, reported the Herald Sun.

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