Savers need to ‘stagger’ their term deposits

Interest rates at record lows spells bad news for savers. Term deposit rates are likely to fall towards 3 per cent, AMP Capital chief economist Shane Oliver said yesterday.

AMP Financial Planner Andrew Heaven said: “People will reconsider their online, internet-based savings account.”

BFG Financial Services financial planner Suzanne Haddan said it was important to stagger maturity dates for term deposits.

National Seniors chief executive Michael O'Neill said: “This rate cut will come as a blow for seniors living off simple investments such as term deposits.”

Source: Sydney Morning Herald