Investors flock to term deposits

"Before the financial crisis, term deposits languished well below rental property as the investment that offered the best returns," said ASB's Jonathon Beale.

"However, over the past two years the two investment classes have had more mixed fortunes. Intense competition in the market for term deposits is also likely to be having an upward impact."

The survey found 20% of respondents now view term deposits as providing the best return, just one point below the highest scores seen in the survey in 2008.

Rental property remains equal with bank savings accounts at 14%.