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Kiwis losing out on $1.2b in interest by leaving ‘lazy money’ in zero-interest accounts

Interest news

Many New Zealanders are missing out on significant returns by keeping billions in transaction accounts that pay no interest, according to Squirrel CEO David Cunningham.

Speaking to state-funded media, he noted that transaction balances, which peaked at $53 billion during low interest rates, remain high at $39 billion—much of it earning 0 percent.

If redirected to savings accounts offering even 3 percent interest, savers could collectively earn nearly $1.2 billion annually.

Experts attribute this to inertia, convenience, and lack of awareness, while some banks are quietly reducing interest on savings products amid falling official cash rates.

Image credit: Towfiqu Barbhuiya

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3 COMMENTS

  1. You got money in the bank? How stupid!
    Cash does not give you interest payments but the banksters charge you fees.
    And in national emergencies they have the power to confiscate your bank assets.
    You own nothing…happy?
    Avoid digital currency at ALL cost.

  2. Buy gold and silver. Both are still going up in price. You have different values in gold. But if gold is still too expensive for you to buy, silver coins are ( still) cheap and probably undervalued

  3. You may not believe it but some of us have a philosophy to not earn interest. Money stagnating in bank accounts (earning more money by being taken out of circulation) rather than freshly flowing and circulating we sense isn’t actually healthy for society overall, though to those who have insecurities this keep it flowing attitude is not seen as practical. Yes we are aware with upcoming plans of digitization and ID connected to financials so yes some money is kept “under the matress” but again its not there stagnating either.

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