How to earn up to 125bps more on call deposits?
The government’s move to cover all deposits under the retail deposit guarantee scheme has opened the door for investors to earn up to 125 basis points more for deposits termed excluded but now covered by the Crown guarantee.
Tuesday, September 14th 2010, 2:27PM
by Sophia Rodrigues
It may be recalled that following the receivership of South Canterbury Finance, the government announced that it has decided to repay all depositors of Crown guaranteed companies that defaulted while protected by the current retail deposit guarantee scheme. This includes non-guaranteed deposits.
To be eligible for cover, the deposits must mature before October 12 and given the end data is just a month away, it includes all call deposits.
PGG Wrightson Finance currently offers 5.25% for a non-guaranteed deposit over $100,000 placed on call but offers just 4% for a similar guaranteed deposit.
In case of Marac Finance, the difference is 75 basis points, with the company offering 5.5 per cent for non-guaranteed and 4.75% otherwise.
Fisher & Paykel Finance offers 4.75% for non-guaranteed and 4.50% for guaranteed.
Equitable Mortgages offers 3% for a non-guaranteed call deposit and 2% for guaranteed deposit.
| « Wrightson spurns long-term guaranteed deposits | ANZ cuts longer-term deposit rates, Will Kiwibank follow? » |
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