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Clever ways to generate more from your savings

Tags financial-planning retirement-planning
Category retirement savings personal-finance


 We're all at different stages with our retirement savings journey. What are your options?

The humble term deposit that Kiwis have relied upon for their retirement income has been joined by new options that offer alternative ways to make the most of every dollar saved.  

So here’s what you need to know to compare and contrast Term Deposits, NoticeSaver, and Cash PIE accounts from RaboDirect. We’re the specialist savings arm of Rabobank, one of the world’s leading agribusiness banks. Our focus is to help you grow your nest egg. 

Term deposits: the tried and tested way to save

Term deposits provide a convenient and reliable way to grow your savings, and have helped fund Kiwis’ retirement dreams for decades. They’re simple. You agree to lock your money away for a term ranging from 30 days to five years and in return RaboDirect pays you a better interest rate than you’d earn with most on-call cash deposits. 

The benefits of notice saver accounts

Notice saver accounts are part term deposit and part savings account.  You agree to lock your money in and receive a competitive variable interest rate. There is no set maturity date, so if you don’t need the cash you can leave it in, earning interest. When you want to withdraw some money from your RaboDirect NoticeSaver all you need to do is give 60 days’ notice for each withdrawal.  

On top of a competitive rate, NoticeSaver gives you the flexibility to top up your savings whenever you have spare cash.   

Notice saver accounts are an excellent choice for saving towards retirement. Think of them as a bridge between a term deposit and an on-call account. With RaboDirect’s NoticeSaver the interest rate doesn’t drop when you give notice to withdraw funds.

Get more of the pie from your savings

Cash PIEs are simple. PIEs (Portfolio Investment Entities) work the same as traditional on-call savings accounts or term deposits but an advantage is that most investors pay less tax on these accounts. That means more money in your pocket.  

Tax on RaboDirect’s Cash Advantage Fund and Term Advantage Fund is capped at 28%, which is a bonus if you’re a 30% or 33% taxpayer.  Every cent brings you a step closer to your retirement dreams. 

RaboDirect – your savings specialist

The great thing about all these products is they’re all available at RaboDirect, meaning you can progress from one to the other as your circumstances change. 

That’s one of the many benefits of putting your savings with a specialist savings bank. Money deposited with RaboDirect helps fund New Zealand’s dynamic agri-business sector.