Term deposits 'offer a good return on investment'

Wednesday 06 April 2011

Article by Mozo

Putting funds into term deposits could be an effective way to secure a good return on investment for Australians, it has been claimed.

Term deposits 'are a good saving option'

Speaking to the Financial Standard, director of banking research and analysis firm RFi Alan Shield noted that investors have had "the jitters" in recent months.

He attributed this in part to the poor global economic conditions of the last six to 12 months.

"We have seen strong growth in deposits as investors have the jitters. Also if you look at returns on term deposits … they are generally pretty good," Mr Shield stated.

According to research by Rainmaker, some $86 billion was deposited into savings accounts by Australians in the final quarter of last year.

This was more than double the amount put into bank deposits in the preceding three months.

Last month, Investment Trends and Centric Wealth suggested that well-off Aussies are increasingly turning to term deposits to get the most out of their cash, the Herald Sun reported.

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