Investors turn towards safety of savings accounts during downturn, survey shows
29th Apr 09, 6:00am
In a further sign that investors are turning towards safer investments during the current economic downturn, bank savings accounts became the most preferred investment class in New Zealand in the first quarter of 2009, a survey by ASB shows. A net 21% of respondents to ASB's Investor Confidence survey said they believed bank savings accounts gave them the best return compared to other investment classes. This was up 5% from the December quarter, and taking top spot from those who preferred term deposits. "Uncertainty over investment options, job security and the world economy has put people into a 'wait and see' mode, making readily accessible money in the bank a clear winner as people play their cards closer to their chest," ASB's Head of Investment Services Jonathan Beale said. Term deposits fell from top spot, which they had held for the past year, to third place in the investment class rankings. A net 13% of respondents to the latest survey said they believed term deposits gave the best return. Rental property remained in second place, having held top spot between 2002 and mid-2007. After falling over late 2007 and early 2008, the investment class has since remained flat at around net 15% of respondents saying they thought it gave the best return compared to others. A net 6% of respondents said they believed shares in public companies gave the best return, down just 1% from the December quarter, but up 1% from the first quarter of 2008.