You’re not alone. With the returns on cash at recent lows, more and more people are starting to look at alternatives.
If you have money currently invested in a term deposit that you are intending to use for a purchase or further investment within the next 12 months, you may want to consider a Cash Fund as an alternative option. The first question we often get asked is, “What are the main differences between a term deposit and a Cash Investment Fund?” We’ve created a comparison table for you to see how they line up.
| CASH FUND | TERM DEPOSITS | |
|---|---|---|
|
Return Objective |
Targets a return above the OCR |
Fixed rate set at beginning of term |
|
Type of return |
Variable |
Fixed |
|
When can I access my money? |
Anytime |
Typically, at the end of the term |
|
When do I receive my money? |
Typically, within 2-3 business days |
At the end of the term |
|
Are there any withdrawal costs? |
No |
Yes, if prior to maturity date |
|
What is the risk of the investment? |
Low |
Low |
|
Tax |
PIE (28% max) |
RWT (39% max) * |
Do you have money coming off a locked-in term deposit? Or perhaps are seeking a short-term low risk alternative that targets returns greater than New Zealand’s Official Cash Rate? Milford’s Cash Fund may be for you.
With the lowest risk profile of 1 on a scale of 1-7, and primarily investing in New Zealand cash, short-dated debt securities and term deposits, and the ability to withdraw your money at any time.
*Please note that past performance is not a reliable indicator of future performance.
A target return above the New Zealand Official Cash Rate
A low risk investment
Exposure to primarily New Zealand cash, short-dated debt securities and term deposits
