Investor caution sees term deposits grow
Funds in term deposits have grown by around $30 billion in the past 12 months on the back of continuing investor caution, according to the latest data released by Canstar Cannex.
As well, the research house suggests this caution will not be changing any time soon, since Australian investors are continuing to closely monitor the European debt crisis and events in the US.
“It is not hard to see why so many investors are using term deposits as a stop-gap measure,” Canstar Cannex financial analyst Adam Beu said.
What is more, he said the major banks were providing attractive rates on term deposits, with the result that investors could obtain 6 per cent “not matter what happens in the meantime”.
Beu said that getting the best interest rate represented the key for investors, with some institutions offering a bonus of around 10 basis points when investors rolled over their deposits.
The Canstar Cannex research named ING Direct as the institution offering the overall best value for term deposits, with the number one credit union being CUA.
AUTHOR
Mike Taylor
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