It's the end of the venerable Bonus Bonds. Despite having many critics they've remained popular since their introduction in the early 1970's. And those critics were probably just disgruntled know-nothings or competitors anyway.
Bonus Bonds offered monthly prizes instead of interest. The main advantage of them was their completely tax free status. Founded by the NZ government and initially run by the NZ Post Office, they were intended as a way for the government to raise funds. When PostBank was sold in the early 90's, their buyer ANZ had to take over the scheme. Their tax free status remained.
Were they any good, these Bonus Bonds? They could be, depending on how much you had invested. Too much and earnings would be too low. Too little and you may wait years for a prize. But for just the right sum, they could earn regularly, and those earnings didn't impact your tax position. The money was on call and returns immediate, meaning a single prize early in the year could cover the whole expected annual return drip fed over time in any other investment vehicle.
Bonus Bonds closure is a sign that the COVID19 lockdowns have damaged the economy. Businesses are closing every day and now banks are stressed. This could get very ugly, and all because of a bug that's about as bad as the flu. Unbelievable.
Showing posts with label ANZ. Show all posts
Showing posts with label ANZ. Show all posts
August 26, 2020
August 02, 2020
End of Cheques a Disaster for Charities
In New Zealand banks are phasing out cheques. There are many reasons for why this is a bad idea. For starters, overseas payers often send a cheque, they still have advanced and meaningful economies where cheques are still used widely. Amazon is an example of a company that pays NZ by cheque. That's right, no direct paying into bank accounts by Amazon for tiny countries, just for big ones like the US, Canada and the UK.
But the biggest impact from the removal of cheques will be on charities. Many of them deal with older people who like to donate and they are less likely to trust online payment methods. Think also about older people's sight, hearing (for telephone banking) and other disabilities. Or people who live remotely. Charities are going to be faced with a very steep curve trying to get donations from these people. For many charities it will spell the end.
Read about it here: https://www.rnz.co.nz/news/business/410820/charities-could-miss-out-on-millions-if-banks-scrap-cheques
For thousands of New Zealanders, sending a cheque to a charity they support may be the only time they connect with the organisation.
But the biggest impact from the removal of cheques will be on charities. Many of them deal with older people who like to donate and they are less likely to trust online payment methods. Think also about older people's sight, hearing (for telephone banking) and other disabilities. Or people who live remotely. Charities are going to be faced with a very steep curve trying to get donations from these people. For many charities it will spell the end.
Read about it here: https://www.rnz.co.nz/news/business/410820/charities-could-miss-out-on-millions-if-banks-scrap-cheques
For thousands of New Zealanders, sending a cheque to a charity they support may be the only time they connect with the organisation.