Term deposits are a great deal right now

The best term deposit deal in the market at the moment is 7.85 per cent for 5 years from the Bank of Cyprus. Westpac has reduced its 8 per cent 5 year term deposit back to 7.25 per cent.

Many investors may not realise what a great deal those high term deposit are says Shane Oliver, head of investment strategy at AMP.

“Inflation should continue at a rate of 2.5 – 3.0 per cent for the next few years, an 8 per cent term deposit would give you a real rate of return of 5 per cent or more with very little risk.”

Andrew Murray from Curve Securities says there are many offers of 6.1 – 6.2 per cent for terms of 6 months.

Source: The Age