RaboDirect: The age old issue of banks versus shares

Media advisory

10 August 2012

RaboDirect: The age old issue of banks versus shares

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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www.rabodirect.co.nz

For more information or for further comment from Mel Templeton please contact: Emma Schuler, 09 353 6620, 0276 22 99 44, emma@senateshj.co.nz

RaboDirect is an online banking service designed to complement customers’ existing banking arrangements. RaboDirect offers New Zealanders a high interest, no fees, on-call savings account as well as term deposits and access to managed funds.

RaboDirect is a division of Rabobank New Zealand Limited, part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 110 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness.

Rabobank operates in 48 countries, servicing the needs of approximately 10 million clients worldwide through a network of close to 1600 offices and branches. Rabobank is among the 25 largest banks in the world based on tier one capital. In New Zealand Rabobank employs approximately 290 staff across 31 branches to service its clients. A team of thirty Wellington based employees support RaboDirect customers.

RaboDirect has been awarded a 5-star rating from Canstar Cannex for its On Call savings account. RaboDirect was winner of Best Online Savings Account for the 2010 Sunday Star-Times Canstar Banking Awards, for the fourth consecutive year. RaboDirect was also winner of Best 90 Day Term Deposit and Best New Product (Cash Advantage Fund) for the 2008 Sunday Star Times, Cannex Banking Awards. In addition, RaboDirect won the Emerging Business Award at the 2007 NZ Marketing Magazine Marketing Awards, and won the Gold in New Product or Service Introduction and the Best in Show award at the 2007 Effies (Advertising Effectiveness Awards).

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