Q.

What is the relative security of money held in a bank fixed term deposit, say 12 months, and money held in a finance company's fixed term debenture. What could go wrong with the latter?

There is no doubt about the safety of Australia's major banks but a debenture is only as good as the company that issues it - some are good - some not so good. If you are thinking of investing in debentures, I suggest you talk to a stock broker or a financial adviser so you will have the benefit of their research.