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 four 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 five per cent for three years, with a minimum deposit of $1,000.
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