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Money asleep in a term deposit? 5 reasons you should wake it up

March 30, 2021

Low interest rates can be great if you’re looking for a mortgage. If you have money in the bank – especially in a term deposit or savings account – they may not be working so well for you.

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Whether you’re planning your retirement, saving for a home or just need somewhere to keep money from a house sale or inheritance, here are five reasons why a managed fund can be a very smart option.

1. You choose the fund to suit your needs 

Unlike a term deposit, a managed fund will typically include a mix of shares, fixed interest investments (for example government and other bonds), and cash investments. Historically, the higher performing funds are a bit riskier, which can see balances fluctuate more – especially in the short term. With managed funds you choose a fund that has the mix of risk and potential returns that matches your goals, timeframe, and risk appetite. Over the long term a managed fund should outperform a Term Deposit.

2. Access your money when you need it 

Even if you plan to keep your investment for a long time, life has a habit of getting in the way. With Kiwi Wealth Managed Funds, you can withdraw your money when you need to with no penalty. This can be great if something unexpected comes up – you don’t have to wait till the end of an investment term to get your money. 

3. Hands-on management to keep on track 

Managed funds are just that: managed. At Kiwi Wealth, your investment is looked after by an experienced professional team actively selecting and managing hundreds of investments the fund is invested in. So, your risk and return opportunity is spread (or diversified) across many investments. Plus the team are local and inhouse.

4. Mix and match? 

Want to save for your kids’ future, but also want to put aside some money for a house deposit? With Kiwi Wealth Managed Funds it’s easy to set up multiple accounts to save for different goals. And you can choose a different fund for each account. For example you might choose the Growth Fund for your kids’ future account and the Conservative Fund for your house deposit account.

5. Test the water with $100 

With a Kiwi Wealth Managed Fund there’s no need to go all-in from day one. You can invest in your choice of Conservative, Balanced or Growth funds with just $100 and track your investment’s performance before deciding whether to invest more.

At Kiwi Wealth, our range of managed funds is a real alternative to leaving your money sleeping in the bank. If you’re ready to wake up your money, you can set up an account online in minutes, or if you would like to have a chat about it, simply click the chat icon on the bottom right of your screen to talk to a member of the Kiwi Wealth team.


Want to learn more?

Find out how you can wake up your money with a Kiwi Wealth Managed Fund or subscribe to our five part email series where we bust some of the myths around investing.

Tags: Investment Basics, Managed Funds

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