Term deposit accounts could be 'safe home for money'

Term deposits could be a good place to invest money over the next few years.

Term deposit accounts may be one place where Australians could store their cash over the coming months and years, according to one writer.

Nick Gardner, writing for News Limited Newspapers, recommended using term deposits in one of his financial tips for saving.

And this may intrigue people with savings accounts who are looking for another means to store their money.

He also advised investing through the bond market and notes that government bonds are "extremely safe" if the user buys them at issue and then holds them until they mature.

But he warned that buying and selling at the wrong time will lose people money.

Pawan Luthra, of Wealth Creation Advisors, told News Limited Newspapers that Australians should be wary of when they invest because the value of the bond could fall.

She said: "Low-risk clients need to be fully aware of the risks because if they redeem their investment at the wrong time they could incur some losses."

The advice comes as Alan Dixon, managing director of Dixon Advisory, said: "Investors now have to be much more aware of what they are investing in and why", as reported in the Age.

By Joe Letts