Banks charge "reasonably high" rates on term deposits, so it might be best to shop around for the best one.
Australians should ensure they shop around to get the best possible interest rate on term deposits, it has been advised.
According to Don Stammer, writing for the Australian, such levels on these products at the banks are already "reasonably high", but they could be a better option for investors.
He added: "Term deposits would likely be preferable to medium-dated and long-dated bonds, on which market values fall as interest rates rise."
But Mr Stammer warned borrowers to expect increases in their interest rate charges on variable rate borrowings.
These comments come after Jeff Mitchell, director of wealth management at Standard & Poor, stated in December that term deposits had attracted "significant" interest from investors in 2010, the Age reports.
He pointed out last year was a "back to basics" one for personal investors as they became more aware of risks, which may have also led to more people taking out savings accounts.
By Emma North
