Factors contributing to the increased popularity of deposits as investments since the GFC include:

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All of these factors have contributed to the increased popularity of deposits as investments since the GFC. The losses experienced on shares during the GFC made capital stable investments like deposits more attractive to investors. Banks have also increased the interest rates paid on deposits, making them more appealing. The government guarantee of deposits up to $250,000 also helped to increase investor confidence in deposits. Additionally, the rise in fixed-term deposit rates relative to returns achieved by cash management trusts has led to an increase in the popularity of deposits as an investment option.

Factors Contributing to the Increased Popularity of Deposits as Investments