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Sophia Rodrigues
Sophia Rodrigues
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Finance coys join banks in short-term deposit war

Tuesday 22nd of February 2011

A fortnight ago F&P Finance made sharp hikes in investment rates which was largely in response to rate increases by PGG Wrightson Finance earlier but now the latter has hiked again in an attempt to align its rates with F&P Finance.

PGG has, however, increased rates only for guaranteed deposits unlike the previous occasion when both the companies raised both guaranteed and non-guaranteed deposit rates.  The increase is made for 90-day, six months and one year terms, and is across all the three amount brackets PGG has, that is, below $10,000, greater than or equal to $10,000 and less than $99,999, and greater than or equal to $100,000.

For 90-day deposits, PGG raised the rate by 25 basis points and has managed to beat F&P Finance only for deposit amounts over 10,000 where it is offering 4.90% compared with F&P's 4.75% for a minimum $1,000 deposit.

In case of six months, an investor can get a higher rate of 5.15% or even higher 5.25% with PGG provided the deposit amount exceeds $10,000 or $100,000 respectively. And for one-year deposits, PGG announced just a 15 basis points rate hike and is able to compete with 6.25% new rate only if the deposit amount exceeds $100,000. F&P is offering the same rate for just $1,000 deposit.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
6 hours ago Steve Wright
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Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
8 hours ago Backstage
FMA outlines its latest expectations for advisers
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