dcsimg

Latest news from RaboDirect

The age old issue of banks versus shares

Posted on 09 August 2012 by RaboDirect | 2 comments
Category: News & Articles
Grandma on laptop

With the debate about bank deposits versus shares heating up, it’s good for people to consider their options carefully when it comes to making investments in their golden years, says Melanie Templeton, General Manager of RaboDirect, the online savings and investment arm of Rabobank.

“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.

With RBNZ recently reporting sustained retail deposit growth compared to last year, it’s clear bank deposits continue to be favoured by Kiwis.

Recent research by RaboDirect confirmed New Zealanders have more cash savings now compared to 20 months ago (an increase by 26 per cent, to 73 per cent).

At the same time there has been an increase in appetite for investing in both shares and property compared to 20 months ago, up from 4 per cent to 15 and 13 per cent respectively.

“It’s an age issue. 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 is the only bank in New Zealand to offer 5 per cent for three years, with a minimum deposit of $1,000.

2 comments

Add comment
How insulting, my grandparents can do what they want with THEIR money. It is not my inheritance until I inherit it; which by definition is after their death.
BrianPosted on 16/08/2012 11:26:00 a.m.
Hi Brian, It certainly wasn’t our intention to offend anyone, just a light-hearted way to look at making life stage a key input into investment decisions for all of us.
Mel TempletonPosted on 9/03/2012 2:36:00 a.m.

Post comment

Please type in the code shown below

All comments are moderated and posted live during working hours.

Need help?

0800 22 44 33
Mon - Fri, 8am - 7pm

Award-Winning Service

We're an online bank, made up of real people, based here in Wellington.


CCINZ-Footer

Follow us

Don't be held back...
Follow us for hints, tips & tricks on financial success.
         

Facebook_32_bwTwitter_32_bwYoutube_32_bwGoogle_32_bw

Why Rabo?

RaboDirect is New Zealand's first internet only bank specialising in savings and investments.