3 ASX dividend shares to replace your term deposit

Forget the Westpac Banking Corp (ASX:WBC) term deposit and check out these dividend shares…

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With the cash rate at a record low and tipped to go lower, the interest rates on term deposits are barely beating inflation these days.

For example, Westpac Banking Corp (ASX: WBC) is currently offering yields of 2.2% per annum based on deposits under $100,000.

This is a shame because term deposits can be an incredibly useful way of generating a source of income for retirees.

But don't worry because the ASX is here to save the day. Three top dividend shares which I think could replace a term deposit are listed below:

National Storage REIT (ASX: NSR)

I'm a big fan of this self-storage operator and think it would be a great addition to most portfolios. Thanks to its successful focus on multiple revenue streams and acquisitions, in the first half of FY 2019 the company posted a 17.4% increase in underlying earnings to $26.3 million. I'm confident that there's still plenty more growth ahead for the company thanks to increasing demand and its opportunity to grow through acquisitions in a highly fragmented market. At present its shares offer a forward yield of between 5.6% and 5.8%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused real estate property trust with assets across a wide range of industries including cattle, almonds, and wine production. I believe the property trust could be a great term deposit replacement due to it being well-positioned to grow its distribution at a solid rate over the next decade thanks to its high quality portfolio, long term leases, and use of rental indexation. Its units currently offer investors a 4.8% forward distribution yield.

Transurban Group (ASX: TCL)

Another dividend share that could be a good term deposit replacement is this toll road giant. Thanks to increasing demand for its roads, recent acquisitions, and toll price increases, I believe Transurban is well-placed to grow its earnings and distribution at a solid and predictable rate over the long term. At present its units provide investors with a trailing distribution yield of 4.2%

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