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Heartland finds new home for term deposits on InvestNow

21st November 2019

Another local bank has joined the growing panel of institutions offering highly-competitive term deposit products direct to consumers on the independent InvestNow platform.

Mike Heath, InvestNow general manager, said InvestNow welcomed Heartland Bank on board this week, bringing the total number of term deposit providers on the market-leading platform to five.

“We’re extremely pleased to introduce Heartland term deposits to our fast-growing client base of self-directed investors,” Heath said. “The fact that five banks have signed up to InvestNow since last year when we first added term deposits to our range of managed funds is a huge vote of confidence in the platform and a real boon to our members.”

He said Heartland brings another competitive edge to the term deposit options for InvestNow members, who can choose the best rates on offer over any term from different banks without opening an account with each institution.

With interest rates at all-time lows, term deposit investors are looking to secure the best-possible returns to make the most out of their cash allocations, Heath said.

“Despite the overall low interest rates many investors still have good reasons for accessing term deposits – whether that’s because they are parking cash ahead of a major purchase such as house or to meet other lifestyle preferences,” he said. “Many fund investors, too, often have floating amounts of cash that they want to make the most efficient use of in the short term – bank term deposits provide a useful complement in a fully-diversified portfolio.”

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Heartland Bank head of retail, Andrew Ford, said the New Zealand bank has a proud local history dating back to its formation as a Christchurch-based building society in 1875. Heartland was granted its full banking license in 2012.

Ford said the arrangement with InvestNow, another Kiwi success story, would make it even easier for more New Zealanders to access Heartland’s competitive term deposits.

“We are 100% New Zealand operated and managed and have helped generations of Kiwis achieve positive financial outcomes,” he said. “We pride ourselves in providing market leading products with competitive interest rates, and always aim to deliver exceptional service.”

According to Heath, as well as getting best-available returns from their term deposit exposures, New Zealand investors were looking for more income options in general as interest rates ratchet lower.

He said demand for income-producing funds has increased markedly over the last 12 months in particular.

While InvestNow members are still predominately interested in equity funds, the proportion invested in income products has grown by almost a third since March this year.

“Right now about 13 per cent of the $360 million plus held on InvestNow has been invested in fixed income and cash-equivalent funds – split 5 per cent in offshore assets and 8 per cent in domestic,” Heath said. “And that’s up from just 10 per cent in March.”

Importantly, he said all the products – both funds and term deposits – on InvestNow operate in highly-regulated environments unlike many of the high interest-bearing offers made under the guise of ‘wholesale’ investments in the wider New Zealand market.

About InvestNow

Launched early in 2017, the Wellington-headquartered InvestNow manages approximately $390 million on behalf of 16,000 plus clients. The online platform offers clients free access to a range of more than 120 funds managed by 23 underlying investment firms across a range of asset classes and countries.

In October 2018 InvestNow began offering a suite of BNZ term deposits, adding SBS to the mix the following month. In 2019 ANZ, the China Construction Bank and Heartland Bank also listed term deposits on the service.

InvestNow members pay no platform or administration fees with a low investment minimum of $250. In March 2018 the business took over the direct fund investment arm of Rabobank NZ. InvestNow is a wholly-owned subsidiary of Implemented Investment Solutions (IIS).

About Heartland Bank

Heartland Bank Limited (Heartland Bank) is part of Heartland Group Holdings Limited (Heartland Group), a financial services group with operations in New Zealand and Australia. Heartland Group is listed on the NZX Main Board and ASX (NZX/ASX: HGH) with more than 12,000 shareholders.

Heartland Bank is a New Zealand operated and managed bank that is listed on the NZX Debt Market (NZX: HBL). Heartland Bank offers savings and investment products, is the market leader in reverse mortgages in New Zealand and provides business, rural and motor vehicle finance.

Heartland is proud of its Kiwi heritage which stretches back to 1875. Heartland aims to provide a first-class customer experience whether it’s online, over the phone or in person. It’s currently focused on channels to deliver its innovative banking products, with an emphasis on digital platforms designed to deliver a fast and simple customer experience.

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