Term deposits popular with cautious investors?
With many Australians tightening their belts, those who have money to put away for a rainy day may be more inclined to invest their cash in a safe place – such as a term deposit – rather than speculate on more risky investments.
This point was recently highlighted by director of Whittaker Macnaught Noel Whittaker, who said in a piece for Business Day that term deposits offer "certainty" to savers.
Data from Canstar Cannex's Deposit Account Star Ratings published in April revealed that the amount placed in term deposits is about $2.3 billion, up from $1.9 billion in February 2009.
According to financial writer Mike Taylor, the forthcoming Plan for Life Wealth Insights report is likely to show that there are a growing number of Aussies opting for safer investments.
He suggested that "safe-harbour" options such as term deposits are proving increasingly attractive as people look to ensure they do not lose their hard-earned cash.
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