The Reserve Bank of Australia kept the cash rate on hold at a record-low two per cent on Tuesday and there’s no sign of rates improving with predictions of another rate cut in December or early next year.

Losing out ... Retirees who are leaving their cash parked in fixed-term deposits are gettSource:Supplied

But latest figures show the amount of cash held in term deposit bank accounts has been plummeting for 21 consecutive months and the longest period in 30 years.

In September this year, $506.5 billion was held in fixed deposits compared to $538.3 billion in September last year.

Analysis by financial comparison website InfoChoice found the average interest rate on a one-year fixed deposit of $10,000 is 2.58 per cent.

But the rates range anywhere between 0.01 per cent and 3.1 per cent.

On the same deposit held in an “at-call” online savings account the average rate is 3.2 per cent but can be as high as 5.25 per cent.

CommSec chief economist Craig James said normally conservative retirees had no option but to shift away from term deposits because some rates were paying very little interest.

Plan B ... CommSec chief economist Craig James says Australians are continuing to shift aSource:Supplied

“More people have been taking them (fixed deposits) out at maturity and putting their money elsewhere,’’ he said.

“Instead they’ve been putting their money in online accounts with special deals on offer when they can get a higher yield or they’ve been putting their money in the sharemarket.”

Semi-retired Leith Forbes, 76, from Melbourne, is among the hordes of older Australians who have lost their appetite for fixed deposits after copping consistently low returns.

Lost appetite ... Semi-retired Leith Forbes, 76, is among a growing number of AustraliansSource:News Limited

“I moved away from term deposits some time ago and have put money in online savings accounts which have marginally better returns,’’ he said.

“You also don’t have to run to the bank to renew them every three months like you do with term deposits.”

AMP financial planner Dianne Charman said cash in the bank is failing to keep up with inflation and said savers should be seeking other investment options.

“If they keep their cash in term deposits because they are after the capital security then they likely to be eating into their capital,’’ she said.