A retiree named Susan seeks safe, higher-interest savings options. She has no debt, owns a freehold house in Whanganui, and is renting in Wellington while planning to work. Her funds are in serious saver accounts and term deposits earning just over 4%.

RNZ consulted Dean Anderson of Kernel Wealth, who suggests options like on-call savings (low rates but flexible), term deposits (higher rates but locked funds), and cash or conservative managed funds (better returns with some risk). He warns that conservative funds can still lose value, as seen during COVID-19.

To avoid scams, Susan should only deal with registered New Zealand financial providers and avoid unsolicited investment offers.

The article also addresses bad credit and home loans. Mortgage adviser Jeremy Andrews says bad credit doesn’t mean rejection. Borrowers can boost their chances by checking their credit score (e.g. via ClearScore), providing context for past issues, maintaining clean banking records, and showing equity or savings. Non-bank lenders are an option, though costlier. Glen McLeod of Link Advisory adds that small defaults may be acceptable if the overall application is strong.

In summary, retirees like Susan can earn better returns safely, and bad credit borrowers still have home loan options with the right approach.

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