Savers missing out on bonus interest
More than half of all New Zealand adults are missing out on higher interest rates by not taking advantage of "bonus saver" products, according to a new survey.
Tuesday, October 4th 2011, 10:22PM 
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by Niko Kloeten
The survey, by RaboDirect, found that 56% of New Zealanders aged 18 and over have never had a bonus saver account, which typically pays higher interest rates than a standard on call account.
Greg McAweeney, RaboDirect general manager Australasia, said billions of dollars were sitting in Kiwi transaction accounts, attracting no or low interest on the money invested.
"According to Reserve Bank figures, there is more than $29 billion of retail funding in these transaction accounts each month. In addition, our past research has shown half of New Zealanders leave more money in their transaction accounts each month than is necessary to cover their expenses.
"For these ‘complacent transactors' there is an opportunity to maximise the returns on their money by putting the surplus into a straightforward bonus product that will pay higher interest rates.
"And for ‘passive savers' - people whose money keeps rolling over in the same account, it's about regularly checking the market to make sure they are getting the best rate possible for their hard earned savings," he said.
The survey was carried out to promote a new RaboDirect bonus saver product.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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