Five alternative investments to term deposits

Co-founder of the Switzer Report
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There is nothing wrong with term deposits. Government guaranteed investments (up to $250,000 per investor per financial institution) paying a regular income. And you can still earn more than 2% (for example, ING Direct is paying 2.3% pa for an 11 month term deposit, or RaboDirect 2.15% pa for 5 years).

If you are an income investor and not happy about the interest rate on term deposits, then you will need to go up the risk curve. Lower rates are here to stay, so the only way to increase your return is to take on more risk.

Risk means that you could lose some or all of your capital. If capital preservation is your main goal, then taking on more risk is the wrong strategy.

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