Reviewer: Priya

Yuo have stated that "the Cash Advantage Fund complies with the scheme and we have submitted an application specifically for it". Is the fund covered by the scheme? Has the application been approved?

Mike Heath: Priya, at the time of writing the Treasury have not approved any Collective Investment Schemes, like our Cash Advantage Fund, for any banks yet. Unlike traditional bank deposit products, Collective Investment Schemes are more "complex" in that they involve the likes of trust deeds, prospectuses and investment statements. We have been working actively with Treasury to provide the information, including amendments to these documents, they require to approve our application for the Cash Advantage Fund. There have been no issues to date with regards to this process and so we remain very confident that the Cash Advantage Fund will be covered, and it’s simply a matter of the process with the Treasury running it’s course. I hope this provides some insight into what’s happening, however if you have any further questions please do not hesitate to contact us on 0800 22 44 33.

Reviewer: James

Does your cash management fund come under the government deposit protection scheme? You seem to offer the best rates around especially your cash advantage fund. I only came across raboplus from a link in kiwimoneysavers which were listing the best rates available in NZ. So thanks to both of you I have the best savings account! But would be interested to make sure you're under the deposit protection scheme, thanks if anyone knows.

Mike Heath: James, thanks for your feedback. Yes, the Cash Advantage Fund complies with the scheme and we have submitted an application specifically for it.

Reviewer: Neil

Hi Mike, if I invested a sum at the current 7.3%, is that locked in for the term or can it change during the investment term? Thanks Neil

Mike Heath: Neil The Cash Advantage Fund is very similar to a regular On Call deposit product, and therefore the interest rate paid is variable and there is no term – you can withdraw the monies whenever you wish with no penalty.

Reviewer: Olly

I Recently throught that the cash advantage funds would work out better than my on-call account with Rabo due to being able to be taxed at 19.5% pa because I was a student last year and hence on my savings account i'm charged at 33%pa due to current income . So i had equal amounts in Cash advantage funds an don-call account for one month and at the end of the month my savings account returned more can you explain how this works?

Mike Heath: Olly, thanks for the question. Without looking at your specific account details, and therefore commenting on them in a public domain, I think it’s best that someone from our Customer Contact Centre gets in touch with you directly – I shall pass your question to one of the team.

Reviewer: Kian

I have funds in savings accounts with my usual bank earmarked for different purposes which I would like to place in the Cash Advantage Fund. But there's no facility to set up sub-accounts (unlike Rabobank's savings accounts).

Mike Heath: Kian, thank you for the feedback.  This functionality does not currently feature on our list of planned enhancements, however I will ensure that it is added.

Reviewer: Olly

Hi I know the tax is paid at withdrawl or end of tax year with the Cash advantage fund. could you tell me that when I view my balance and it shows the net gain/loss does this take into account the loss of a withdrawl or will that only happen when I take from it

Mike Heath: Olly, The Profit/Loss figure will reflect interest earned for the existing units you hold in the Cash Advantage Fund. On the sale of units in the fund, interest earned for those particular units is no longer taken into account when calculating the Profit/Loss figure (subsequently you may see a decrease in the profit amount).

Reviewer: Victoria

Sorry ,where can I find price of CAF unit?

Mike Heath: Victoria, if you use the Fund Selector you’ll see there is a tab titled “Fund Prices”, under which you’ll see the unit price for the CAF and all other managed funds.  The Fund Selector can be found either on the home page (Under Popular Links – titled “Find a Fund”) or in the left hand navigation under Managed Funds, also titled “Find a Fund”.

Reviewer: Noel

Is the Cash Advantage Fund covered by Collective Investment Schemes and does it comply with the following clause on the reserve bank site they invest exclusively in New Zealand government securities or debt securities issued by institutions covered by the Crown guarantee; and they do not increase their investments in guaranteed institutions that are not registered banks beyond the level that existed as at 12 October 2008.

Mike Heath: Noel the answer is yes to the above questions, and I can advise you that we have lodged an application for the Cash Advantage Fund for the Deposit Guarantee Scheme.

Reviewer: Ada

Hi, your Cash Advantage Fund sounds really good, but can you please tell me what the risks are please??

Mike Heath: Ada the money is on deposit with Rabobank NZ and Rabobank NZ offers the following benefits to investors:

* Rabobank NZ has lodged an application for the recently announced Deposit Guarantee Scheme

* Rabobank has a AAA credit rating from Standard and Poor’s, and has held this for over 25 years

* Deposits with Rabobank NZ are guaranteed by group parent company Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland)

I’m sure you’ll agree that the above address any actual risks.