Some investments paying interest are not as safe as you think.
- Term deposits and bonds are defensive assets that are generally low-risk.
- Don't be swayed by the name of the product. A 'secured' investment may not be guaranteed.
- Understand what the company or bank plans to do with your money. This will help you understand the investment and the risks.
- Read the prospectus or product disclosure statement for key information about the investment.
- Never put all your eggs in one basket. Investments paying interest should be part of diversified financial plan.