Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kiwis Are Seeking a Better Return on Their Savings

8 November 2018

More Kiwis are seeing the benefits of investing their savings in term deposits outside of the big banks, leading non-bank lender, Liberty, said today.

Liberty established its deposit taking arm in 2003 and the popularity of the fund in recent years has seen its portfolio grow significantly. It’s recently surpassed the $50 million mark of current deposits having seen 127% growth since 2016.

Liberty chief executive Mark Collins believes investors want more choice than what the big banks can offer.

“We’re definitely seeing a significant shift in the number of customers that are seeking out other options. Many property investors have reduced their portfolios and released capital in recent years. They want to put their money into a term deposit but they are unhappy with the rates at the big banks. Another driving factor in Liberty’s growing term deposit portfolio is baby boomers.

“We’re seeing more baby boomers downsize in preparation for retirement. Their intention is to use any capital generated from the sale of their home to fund their golden years, but they are looking for a higher return.

“Average 12-month term deposit rates at the banks for investments over $10,000 are around 3.30% - that’s historically very low. If you’ve got a decent amount to invest and want the security of a term deposit, you want that money working for you as best it can,” said Mr Collins.

Interest rates in the non-bank sector can start at 4.05% for investments more than $5000.

“When you can get an increase of 20% on your return somewhere else, and that organisation is still investment grade rated, smart investors take notice.

“Further, the Reserve Bank of New Zealand supervises non-bank deposit-takers such as Liberty which has implemented sound governance and risk management practices. By providing additional choice to customers, we’re helping more Kiwis achieve their financial goals,” said Mr Collins.

-ENDS-


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Retail: Supermarkets Announced As Government’s Second Market Study

The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries. More>>

ALSO:

Statistics New Zealand: Retail Sales Recover In The September 2020 Quarter

Retail sales values recorded the largest September quarter rise since the series began in 1995, Stats NZ said today. Spending on major household items, vehicles, and groceries contributed to the strong 7.4 percent ($1.8 billion) rise in total ... More>>

Kea Aerospace: New Zealand Flies Into The Stratosphere

Development has started on a solar-powered, unmanned aircraft that can fly in the stratosphere continuously for months at a time. The zero-emission aircraft will carry a suite of imagery equipment that will be game-changing for many industries, vastly ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>