Term deposits 'offer attractive rates'

Taking the time to seek out long-term deals could be an effective means for consumers to find the best term deposits offers, it has been suggested.

Pointing out that the chances of the Reserve Bank increasing the base rate of interest over the next 12 months are low, Andrew Willink states there are a number of competitive five-year term deposit deals.

One of these, he tells the Australian, is offering a 6.5 per cent rate of return, some 1.5 percentage points above the five-year government bond yield.

He points out that in an effort to secure funding banks are increasingly offering attractive rates on fixed-term deals.

"So it is worthwhile really shopping around and, if you are not concerned about needing the money immediately, do some good research and obtain a higher yield," he claims.

Similar assertions were recently put forward by the Sydney Morning Herald which reported that although the typical interest attached to online saving account stands at 3.5 per cent, taking the time to scour the market can uncover deals offering returns of above four per cent.

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