Do term deposits still stack up?

Investors wanting to lock in long-term fixed interest returns have a choice of five-year term deposit accounts paying under 5%. Will returns move up, and what are the alternatives?

Some investors face a tough decision now, and in the months ahead, as their five-year term deposits which had been yielding almost 8% back in late 2009 start maturing.

Should the deposits be rolled over for another five years, at a time when the cash rate is at historic lows and term deposits pay just over half their old rate, or are there viable alternatives in generating interest from cash?

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