Research by on-line savings specialist RaboDirect shows that New Zealanders have boosted their proportion of cash savings by 26% over the last 20 months, with investments in shares and property on the rise.
Melanie Templeton, general manager for RaboDirect, said Friday that amid the uncertainty of the share market, returns on term deposits were proving relatively attractive, particularly for older savers who didn't want to risk as much.
“Right now you can get a rate for your bank deposit that compares well with uncertain returns on the share market. This is good news for Kiwi investors, particularly older investors who have more to lose, less time to lose it in, and are seeking more sure and stable returns,” she says.
Since June 2011, retail deposits in New Zealand have increased by more than 9% from NZ$96 billion to NZ$105 billion, according to the Reserve Bank of New Zealand.
Separate research by RaboDirect found that over a longer time frame of 20 months, New Zealanders appetite for shares and property had also grown significantly; up from four percent to 15 and 13 percent respectively.
Templeton said age would have big bearing on which asset class would be most beneficial as well as the investor's appetite for risk.
"Dependent on life stage, people need to think carefully about where they put their cash. Do people of an older age really want to be dabbling in equities instead of getting a more certain return from the bank?” asks Ms Templeton.
RaboDirect boasts of being the only bank in New Zealand to offer five percent interest for three years, with a minimum deposit of $1,000.
For a full range of comparative term deposit rates see interest.co.nz's saving section here.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.