Comments on: Mother in Law’s guide: Opt for up to one year and watch for guarantee action

By: ghostwhowalksnz

ghostwhowalksnz — Sat, 02 Jan 2010 03:17:37 +0000

If they call themselves ‘bank’ then they are a BANK. The use of the word is restricted to real banks. see SBS immediately added Bank to its name when its status changed.

By: We are Stuffed

We are Stuffed — Mon, 30 Nov 2009 09:01:12 +0000

“The government can be trusted to honour its guarantee, but it’s not worth the worry and drama and potentially delay of a default and claim.”

What a load of rhubarb Bernard. There has been no trouble with the govt paying out any of the Govt insured institutions that have collapsed. It is just a simple form and the depositors have been paid quickly. For 8% with interest paid monthly it is definitely worth it. Hubbard has not run for cover like the other finance company crooks either.

The Govt will just tax you more if SCF fails to make up for what they have to pay me:).

By: veedub

veedub — Tue, 10 Nov 2009 20:30:08 +0000

@ John, TSB isn’t Aussie owned, and the profits go back into the community. I’ve banked with them for years and they’re fantastic in terms of service. Most of my “house deposit” is saved with TSB, I feel safe with them. They’re often rated as NZ’s best bank – how that conclusion is reached I have no idea but I give them a big thumbs up.

By: John

John — Tue, 10 Nov 2009 20:24:40 +0000

Can anyone enlighten me on the difference between a bank and a building society? I’ve been told that TSB isn’t really a bank but is in fact a building society. The only thing different about TSB that I can see is that it is owned as a community trust instead of by shareholders looking for maximum profit.

Is TSB a good place to put my money or is a bank like ASB better? ASB has a higher credit rating, but does that mean much really?

By: andy hamilton

andy hamilton — Tue, 10 Nov 2009 19:22:50 +0000

I can understand advising your mother in law against the 8% offered by SCF even with the guarantee.

However I think honourable mention should be made of the 5.75/6% for 6 months offered by Marac. Now Marac got themselves in similar sh@t to SCF and until a few weeks ago would have looked just as problematic. However their parent (PGC) successfully raised nearly $300m at the end of October on the stock market which is earmarked largely for Marac. They are also divesting themselves of $160m of crappy loans. Even the slippery individual who run finance companies would do well to burn up that extra money in the next year (and they are of course also government guaranteed).

I would certainly choose Marac ahead of SCF on this basis (at least on the 6 month window), and think its a reasonable rate against ASB.

I actually have money with ASB maturing – they seem very keen for me to roll it over in a longer term deposit – however I agree with Bernards logic, the shorter end of the deposit curve is the place to be at the moment (its also always best to do the opposite of what your bank implores you to do I find).