Being in a government guarenteed institution means that you're safe in the short term.
Know the risks
Government guarantee
You've probably heard that the government is now guaranteeing certain types of investments. So what does the guarantee cover ... and how do you find out if your savings are protected?
If you have money deposited with an "approved institution" that defaults at any time between 12 October 2008 and 12 October 2010, the government will pay you what you're owed (up to $1 million). So you can invest money with one of those "institutions" over the next 22 months and rest easy, knowing that you'll get it back - unlike the many Kiwi investors who lost out in the recent finance-company collapses.
The main banks are members of the scheme, but the list is being constantly updated.
To see if your investment is government guaranteed, go to: http://www.treasury.govt.nz/economy/guarantee/retail/approved
Important
Like you, we can't predict the future - which means we can't guarantee the performance of any company or investment. Consumer NZ does not endorse any specific company, scheme or investment. ConsumerSaver is a good starting point - but, before you commit, we strongly suggest you seek independent financial advice. See our full disclaimer.
