The interest rate of a term investment tells you the level of risk involved
What are the risks?
Interest rate
Weigh up the interest rate against the other information from the prospectus to get a real picture of the investment. To find out what to look for in a prospectus, see Read the fine print.
Generally the interest rate of a term investment tells you the level of risk involved - usually the higher the interest rate, the higher the risk. But finance companies may offer interest rates that are closer to bank rates, to make their investments seem less risky.
Tip
Never base your investment decision on the interest rate alone - whether it's high or low.
See Government guarantees for more information.
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.
