Term deposits 'will yield more than international equities'

By Mozo ·

Aussies trying to decide what to do with their savings might consider going online to compare term deposits in light of one expert's comments.

In a piece for Money Management, Tim Farrelly, principal of specialist asset allocation research house Farrelly's, asserted that international equities are currently quite expensive.

At the moment, those who invest in term deposits can expect to get a return of approximately six per cent a year on their money.

Mr Farrelly commented: "According to our forecasting techniques, international equities will produce lower returns over the next ten years than those available from term deposits."

Last month, online savings and investments bank RaboDirect launched a five-year product that offers people a term deposit interest rate of 7.15 per cent annually, reported the Sydney Morning Herald.

Those who want to be able to access their funds sooner may prefer to consider the 6.6 per cent interest rate available through the one-year term deposit.

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