Term deposits can work for you

Term deposits are simple savings accounts offered by banks, building societies and credit unions that pay a fixed rate of interest for a given term of usually between one month and five years.

Rates are comparable to many annuities, but you can't access capital during the term, so you must live off only the interest. If you need to withdraw any of the initial investment, you could lose all or part of the interest.

They are nice and easy to understand – although there are catches. Nastiest of these is the practice of rolling over your money at the end of the term into another, same-length term deposit account, but usually at a far lower interest rate.

Source: Herald Sun