Are high interest term deposits a good investment option given that the share market is performing poorly?

Q.

Are high interest term deposits a good investment option given that the share market is performing poorly? I read in one of your columns that a drawback with investing in term deposits is their lack of tax benefits. However, if my income including interest is below the tax free threshold, does the safety of a term deposit make it an attractive option?

The question is always how relatively attractive term deposits are to shares and if you can receive bank interest tax-free it certainly adds to the relative attractiveness of bank deposits. However, franked dividends deliver cash bonuses to low income investors and over the long term shares have always outperformed cash. I suggest a good diversified portfolio is the way to go.