July 24, 2009

The billion dollar break through

Hi

Things are heating up in the deposit rate space as this week's Deposit Rates Newsletter reveals.

Kiwibank have broken through the $1 billion mark with its cash PIE funds, as competition in the term deposit market ratchets up around it.

We also report on the "significant challenges" facing First Step investors, with the company's trustee warning that further write downs or losses are possible.

Meanwhile, there are suggestions that other banks may be keen to lure former ING frozen fund investors away from ANZ, with high interest rate account offerings of their own.


News
Kiwibank cash PIEs top a billion dollars
Kiwibank's cash PIE funds have topped a billion dollars just four months after the launch of its financial planning division and amid stiff competition from the term deposit war. More

Banks look to target ING's 14,000 frozen funds clients
Three banks are rumoured to be interested in launching a high interest rate account specifically targeted at investors in ING's frozen funds, to rival that of ANZ. More

First Step investment trusts wind-down stall as buyers dry up
Investors waiting for another $233.5 million tied up in First Step investment trusts will probably have to wait a little longer as prospective buyers for the company's remaining assets dry up, putting "significant challenges in realising the remaining assets." More

Rates Round up
Clegg and Co directors face charges; BNZ says tax bill won't impact on any debt or equity obligations; Downer's Works Bond fully subscribed; St Laurence resets rates; Deutsche Bank starts buying back callable bonds. More