Bank term deposit rates are set to remain lower for longer so it makes sense to continue to look elsewhere for income. If you’re a long term investor, term deposits are, ironically, one of your riskier assets. In this article, Shane Oliver, Chief Economist and Head of Investment Strategy, AMP Capital, and Paul Clitheroe, Executive Director, ipac, discuss the ramifications of holding bank term deposits in a low-yield world. They conclude that investors have the potential to receive a higher cash flow from other growth assets such as Australian property and shares.
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