Bank Deposit Compensation Scheme:
New Zealand Bank Deposits

There is currently no compensation scheme covering New Zealand bank deposits should the bank be unable to meet it's financial obligations.

WARNING! - Any bank deposits in New Zealand are at very high risk should the bank go in to difficulty. Simply put - you could lose 100% of such deposit.  RIO strongly recommends that members do not take the risk especially since banks are offering little reward for the degree of risk taken. Risk quantified 100% loss versus set bank deposit return 4%- Risk/Reward ratio very poor!

Recommendation; firstly check that your bank is covered by scheme if not move banks. Secondly should any member have bank deposits in excess of government compensation scheme open a second account at another bank, making sure that the bank chosen isn’t owned by or a subsidiary of the bank you already have deposits with. For those choosing to have large amounts of cash on bank deposit this is not recommended for several reasons but if you simply prefer having large amounts in cash deposit then at least protect the capital by diversifying such deposits to several unconnected banks and ensure that with each deposit remains below the set compensation scheme.

Capital Protection Products Vs. New Zealand Bank Deposit Offers

There is a world of difference in Bank deposit versus RIO Fixed Income Bond in terms of both Risk and reward.

Bank deposit

Any capital invested in a New Zealand bank is not covered by any compensation scheme. As such capital is not protected and at high Risk. (risk/reward very poor).

Designed for small lump sum deposits are usually though high street banking. (banks are exposed to risk by nature of their business) Risk/Reward ratio poor

When contemplating retirement you should not expose capital to significant risk as this could be disastrous.

RIO Fixed Income Bond Series 2 (Improved Surety)

RIO Fixed Income Bond 100% of capital is guaranteed / no risk to capital

Return 7% before tax, however tax can be mitigated completely should you require this we can set this up for you.

Based in Sterling conversion from NZD to Sterling currently represents (12th March 2013) real value and a currency gain can be expected on top of 7% pa fixed return for the fixed period being 5 years.

Designed for retirement and large lump sum, by nature this type of vehicle bares no risk to capital and offers 100% protection - combined with a fixed return for fixed period. (risk/reward ratio Excellent)

Although the New Zealand banks do offer at times attractive rates one must remember that there is no compensation scheme in place for depositers which exposes 100% of your capital should the bank run into financial difficulties. We recommend not taking this risk for such low reward.

Current New Zealand Bank Deposit Rates

Deposit Account Type		Term	APY	Account Details
BNZ 1 Year Term Deposit		1 year	4.20%	Rate is for a 1 year term and is for a deposit balance between $5,000-$1,000,000 - NZD - Mar, 2013
Westpac NZ 1 Year Term Deposit		1 year	4.20%	The interest rate for this deposit is for a 1 year / 12 month term and applies to amounts deposit - NZD - Mar, 2013
ASB 1 Year Term Deposit		1 year	4.10%	Rate is for a 12 month term for amounts $10,000-$49,999 or $50,000+ - NZD - Mar, 2013
NBNZ 1 Year Term Deposit		1 year	4.00%	- Rate is for a 12 months, It is calculated daily and can be paid into any nominated NZ bank acco - NZD - Mar, 2013
ANZ 1 Year Term Deposit		1 year	4.00%	Rate is for 12 months (1 year) and is for deposit amounts from $10,000 to $5,000,000 - NZD - Mar, 2013
ASB 6 Month Term Deposit		6 month	4.00%	Deposit Interest Rate applies to the 6 month product and is for amounts $10,000+ - NZD - Mar, 2013
ANZ 6 Month Term Deposit		6 month	3.75%	Interest Rate is for 6 month product and is for deposit amounts from $10,000 to $5,000,000 - NZD - Mar, 2013
NBNZ 6 Month Term Deposit		6 month	3.75%	Interest Rate is applicable for the 6 month term deposit product with a minimum of $10,000+  - NZD - Mar, 2013
BNZ 6 Month Term Deposit		6 month	3.60%	Interest Rate is for a 180 day / 6 month term and is for a deposit balance $5,000-$1,000,000 - NZD - Mar, 2013
ANZ 3 Month Term Deposit		3 month	3.25%	Interest Rate is for 3 month product and is for deposit amounts from $10,000 to $5,000,000 - NZD - Mar, 2013
ASB 3 Month Term Deposit		3 month	3.25%	Interest Rate applies to the 90 day / 3 month term deposit product for deposit amounts $10,000+ - NZD - Mar, 2013
NBNZ 3 Month Term Deposit		3 month	3.25%	Interest Rate is applicable for the 90 day / 3 month term deposit product with a minimum of $1000 - NZD - Mar, 2013
BNZ 3 Month Term Deposit		3 month	3.25%	Interest Rate is for a 90 day / 3 month term and is for a deposit balance $5,000-$1,000,000 - NZD - Mar, 2013
ANZ 1 Month Term Deposit		1 month	3.00%	- NZD - Mar, 2013