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Friday Tidbit

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

It has taken 30 years for fixed term deposit rates to utterly collapse.

Click for chart.

My mother just received her 8 month fixed term deposit renewal notice from Commonwealth Bank of Australia which has offered 0.05% per annum to renew.

That is not half a percent but 0.05% or $33 of interest income per $100,000 deposited for 8 months.

Seriously, what does $33 buy?

Using cash or fixed term deposit as a defensive asset solution no longer makes any sense.

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