New Kiwibank Flexible High Return Saver

Kiwibank has today launched a new innovative savings option called “Notice Saver” that combines high returns with the flexibility of having access to funds.

Notice Saver is expected to be particularly popular with customers who have money to invest, but are not certain when they will require some or all of the money for other things.

Kiwibank Chief Executive Paul Brock said that Notice Saver is a response to demand from customers who are seeking good returns without compromising flexibility.

If a traditional Term Deposit is broken because the customer has need of funds before the due date, there is a significant reduction in the returns paid.

Money invested in Notice Saver is not fixed for a set term and returns are calculated daily and compounded monthly. Notice Saver is also compliant with the PIE regulations which means there are tax advantages to customers on higher tax rates.

It will allow customers to enjoy returns normally only enjoyed for fixed term investments and withdraw some or all of the funds by giving the bank 32 days’ notice.

Mr Brock said it is another initiative to assist people with savings.

“Notice” accounts are available in the US, England and South Africa. Mr Brock said these savings options are very popular for customers seeking higher returns, and access to funds without losing interest and flexibility The compounding returns paid monthly also prove attractive.

Mr Brock said that these types of savings options have been long overdue in New Zealand and could take a substantial share of the traditional Term Deposit market because of their flexibility.

The current return available for Notice Saver is 5.00% p.a. There are no account management or transaction fees. The minimum deposit is $2000.

ENDS

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