Media release – 20th March 2007
Bank of New Zealand launches banking first – giving customer groups the power to minimise home loan interest and
maximise interest from savings
[SCOOP EDITOR'S NOTE: Click image below to view full press briefing.]
Bank of New Zealand is releasing an innovative new offering that will revolutionise the way we think about money, savings, and banking in general.
Called TotalMoney, this new way of banking is a unique first for New Zealand. It allows customers to come together and
form groups that may help them pay less interest on a home loan and earn more interest on account balances.
”This marks a significant evolution in personal and family banking,” says Shona Bishop, Bank of New Zealand General
Manager, Marketing.
“For the first time, customers can form groups and combine their accounts to be better off.”
Groups may be formed by**:
• Individuals
• Couples
• Parents and children
• Family trusts
• Non-trading companies
“This is a major step forward in the concept of banking, one that maximises consumer power and puts the customer firmly
in control.
By grouping, customers can pool their accounts and maximise interest on account balances, including cheque accounts, and
offset account balances against a TotalMoney variable home loan to pay interest on the net amount, lowering interest
costs and paying the loan off sooner.
TotalMoney has the following features:
• Pooling – account balances are aggregated to attain the highest available interest. Interest is paid on all TotalMoney
balances, including cheque accounts.
• Offsetting – balances in the TotalMoney group can be offset against a TotalMoney variable home loan for interest
calculation purposes.
• Unlimited transactions on up to ten accounts for $10 per month*.
• Unlimited text and email alerts.
• Online banking
The principle benefits for the customer are:
• Pooling – earn high interest; earn interest on accounts that didn’t earn interest before.
• Offsetting – pay less interest on your variable home loan; which may help to pay your loan off faster.
• Lower account fees.
• More control of money.
• Banking available online, anytime, with no more paper statements.
• Customer accounts remain separate and distinct, despite being part of a group.
“Our research shows that TotalMoney should have considerable appeal,” continues Shona Bishop. “Many Kiwis are looking
for reasons to consolidate their accounts with one bank, just as they are looking for more choices and more control.
There are almost 1.6 million New Zealanders who could benefit from TotalMoney.
“We hope that this new initiative will not only support household savings, but will enable New Zealanders to become debt
free earlier, accomplish their home ownership goals within their families and groups, and encourage retirement savings
as well. These are the burning issues in New Zealand right now, and this is what TotalMoney can address.”
*Service and facility fees may apply
** TotalMoney is not available for business purposes
ENDS