Money in the bank seen as sign economy better
Putting savings in the bank is back in fashion with research showing almost three-quarters of New Zealanders are likely to have a savings account or term deposit.
But the same survey, published by Rabodirect, also showed more people were now investing in shares and investment properties than in late 2010.
The bank cites a survey of 1000 New Zealanders in which 73 per cent said that any left-over money they had after paying monthly expenses was put into a bank savings account or term deposit.
That’s up from the 47 per cent measured in a similar poll in August 2010. In that poll, 30 per cent of those surveyed said they had no money left over after paying bills and a further 15 per cent had no ‘‘savings’’ component and were either paying off debt or spending.
Back then 4 per cent of New Zealanders were investing in both shares and investment properties, but now 15 and 13 per cent were putting their investment dollars in each category respectively.
Massey University banking studies lecturer Dr Claire Matthews said the research suggested the economy was improving. ‘‘If you’ve got more people saving as well as investing in shares and property, that suggests they’ve got more money than they used to have, so it does suggest the economy is improving.’’
Rabodirect said Kiwis could continue to get decent returns on bank deposits if they were willing to shop around. There was $80 billion tied up in household savings accounts, much of which was not being managed properly, it said.