Not all savings accounts are created equal, and it's worth knowing what all your options are so you can get set up with the one that best suits your savings goals. Here, we've pulled together a wrap-up of the different savings accounts available across New Zealand's main retail banks.
The Kiwi banking sector has come under some pretty heavy scrutiny in recent months, as uniformity and a lack of competition between key players has allowed bank profits to soar (and keep on soaring) at the expense of their customers. So, what's the answer? Well, Squirrel's Dave Tyrer reckons it's not another bank.
New Zealand’s retail banks made $9.96 billion (yep, that’s with a ‘b’) of pre-tax profit in 2022. And while the banks are laughing all the way to the – well – bank, what most Kiwi don’t fully understand is how they’re making that money. (Spoiler alert: it's Kiwi that are losing out.)
With inflation like it is right now, you're only marginally better off having money in the bank than you would be having it stashed away under your mattress. So, what other options are there?
Let's just say that if you take a conservative approach to investing your KiwiSaver nest egg, 2022 was not a good year.
The last time 40% deposits for investors were introduced, Auckland house prices had been soaring for four years. This time, we're only a year into the current frenzied house price cycle, and interest rates are much lower than they were. So how much impact will reintroducing the rule have?
While homeowners are relishing the lowest home loan rates we have seen in NZ, investors are doing it tough where ‘safe returns’ at the bank are now often no better than inflation. So what other investment options are there?