Fixed interest is quite a diverse investment category.

The fixed interest asset class includes investments such as term deposits, government bonds, corporate bonds and debentures. These are often called fixed income securities. You can also invest in international fixed interest which includes bonds issued by foreign governments and corporates. 

For the majority of fixed interest investments, the interest rate and timeframe for investment will be set from the outset – that is fixed.

A term deposit may offer a more attractive interest rate than a cash rate as it generally locks in your investment for a longer time period.

A term deposit only offers an income return (the interest rate) and does not offer any capital growth.

Another example of a fixed interest investment is a government bond.