Two million Aussies love term deposits
Lower interest rates on term deposits has not led to a big flight out of term deposits to other investments. While a small number of Australian savers have apparently transferred to other products, including savings accounts, most term deposit holders have held on to their investments.
The number of Australians with money in a term deposit fell by about 36,000, or two per cent, over the 12 months to June according to Roy Morgan Research.
According to Reserve Bank of Australia data, three-month term deposit rates have fallen by an average of 50 bps over the past 12 months.
1.9 million Australians currently have money in term deposits.
Source: Banking Day