Latest news with #Squirrel
Scoop
3 days ago
- Business
- Scoop
Money In Transaction Accounts Costing New Zealanders Billions
Article – RNZ New Zealanders could be leaving their share of more than $1b a year on the table by keeping their cash in transaction accounts. , Money Correspondent New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. 'Almost all of this earns 0 percent [interest].' If that money was shifted into an account paying 3 percent, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. 'You're always going to need some float in your transaction accounts but a lot of this is lazy money.' He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. 'Every time you log in they could remind you that you've got say $20,000 in a transaction account earning nothing and if you moved it to savings you could earn x… that would be a way to make sure people were better off,' Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. 'They may have concerns about fees to access it if it's in a savings account. Partly I think it's because they don't think the interest will be worth it – but they may not have actually looked at the numbers, because depending on the amount it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it.' Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction. Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7 percent.
Scoop
3 days ago
- Business
- Scoop
Money In Transaction Accounts Costing New Zealanders Billions
, Money Correspondent New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. "Almost all of this earns 0 percent [interest]." If that money was shifted into an account paying 3 percent, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. "You're always going to need some float in your transaction accounts but a lot of this is lazy money." He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. "Every time you log in they could remind you that you've got say $20,000 in a transaction account earning nothing and if you moved it to savings you could earn x… that would be a way to make sure people were better off," Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. "They may have concerns about fees to access it if it's in a savings account. Partly I think it's because they don't think the interest will be worth it - but they may not have actually looked at the numbers, because depending on the amount it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it." Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction. Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7 percent.
1News
3 days ago
- Business
- 1News
Money in transaction accounts costing Kiwis billions
New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. ADVERTISEMENT "Almost all of this earns 0% [interest]." If that money were shifted into an account paying 3%, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. "You're always going to need some float in your transaction accounts, but a lot of this is lazy money." (Source: He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. ADVERTISEMENT "Every time you log in, they could remind you that you've got say $20,000 in a transaction account earning nothing, and if you moved it to savings you could earn x… that would be a way to make sure people were better off," Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. "They may have concerns about fees to access it if it's in a savings account. Partly, I think it's because they don't think the interest will be worth it - but they may not have actually looked at the numbers, because depending on the amount, it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it." Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction. Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7%.
RNZ News
3 days ago
- Business
- RNZ News
Money in transaction accounts costing New Zealanders billions
Experts are reminding New Zealanders to consider whether cash they have stored in the bank could be be earning them interest. Photo: 123RF New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. "Almost all of this earns 0 percent [interest]." If that money was shifted into an account paying 3 percent, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. "You're always going to need some float in your transaction accounts but a lot of this is lazy money." He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. "Every time you log in they could remind you that you've got say $20,000 in a transaction account earning nothing and if you moved it to savings you could earn x… that would be a way to make sure people were better off," Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. "They may have concerns about fees to access it if it's in a savings account. Partly I think it's because they don't think the interest will be worth it - but they may not have actually looked at the numbers, because depending on the amount it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it." Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction . Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7 percent. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Rhyl Journal
16-05-2025
- General
- Rhyl Journal
Rhuddlan child wins Unsung Heroes Award from Scouts UK
Charlotte 'Lottie' Dawson was awarded the Unsung Heroes Award by Chief Scout Dwayne Fields at a ceremony on May 9. The award is given to those who have shown outstanding bravery and selflessness in their community. Lottie, who joined the Squirrel Scouts at the age of five, was recognised for her determination and resilience in the face of a medical condition. She had a developmental displacement of her hip, which required surgery at Alder Hey Children's Hospital. Following the surgery, Lottie had to wear a full body cast and underwent a long period of care and physiotherapy to enable her to walk again. Despite this, she has not let her medical condition hold her back. Donna, Squirrel Scout lead at 1st Rhuddlan, said: "Lottie shows incredible resilience and determination, never letting her medical condition hold her back. "As a Squirrel Drey we are immensely proud of her." Lottie is always eager to help new Squirrel Scouts settle into the Drey and participates in every outdoor activity. She has also been selected to carry the Squirrel flag on important occasions, including the Remembrance Service. Chief Scout Dwayne Fields said: "A huge congratulations to the winners of this remarkable award for acts of courage and selflessness in the community. "Being part of the Scouts provides young people with skills they take with them through life, and the stories of these young people represent the highest form of Scouting values. "I want to thank you for your dedication and celebrate what is a truly outstanding achievement." READ MORE: Abergele school celebrates the 80th anniversary of Victory in Europe Day Lottie, who has now moved to the Beaver Scouts, continues to embrace everything she wants to do, despite some movement being difficult. Her mother, Katie, said: "I am so proud of Lottie and what she is achieving. "She loves Squirrels and wants to go all the way through the movement. "I hope she inspires others to get involved and find their place. "A special credit should go to her Squirrel Leaders (Donna and Chris) who took her under their wings, ensured she felt so welcomed, and whatever the ability of the child everyone is included." The Unsung Heroes Award ceremony took place at the Scouts' home, Gilwell Park, celebrating some of the most courageous young people from across the country. Friends, families and fellow Scouts came together to watch proudly as the young people received the newest Scout award and reflected on their remarkable achievement.
