Saturday, 20 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Business

Bonus Bonds scheme now in wind-up, investors can no longer cash in

1 Nov, 2020 09:11 PM2 minutes to read
ANZ is now winding up the Bonus Bonds scheme. Photo / file

ANZ is now winding up the Bonus Bonds scheme. Photo / file

Tamsyn Parker
By
Tamsyn Parker

Personal Finance Editor

VIEW PROFILE

The Bonus Bond scheme has now entered into wind-up mode and bondholders can no longer cash in their investments.

Around $2 billion has already been redeemed by around 170,000 customers from the scheme.

It had $3.3b invested with around 1.2 million bondholders when ANZ announced on August 25 that it would stop taking new investments and look at winding up the scheme due to low interest rates reducing the prize pool.

Read More

  • Kiwis withdraw $766 million from ANZ's Bonus Bond scheme - NZ Herald
  • Where to invest your Bonus Bond cash - NZ Herald
  • The return on bonus bonds - NZ Herald
  • Mark Lister: Why it's good riddance to Bonus Bonds - NZ Herald

ANZ Investment Services, which manages the scheme, said today the wind-up began at 9pm on Saturday.

Advertisement

Advertise with NZME.

During the wind-up, the supervisor and the manager will calculate and distribute the remaining funds to investors.

Final distributions from the wind-up cannot be paid until term deposits that the scheme invests in have matured or been otherwise realised, the final winding-up expenses have been confirmed and the ANZ has bank account details from Bondholders to make payments.

Ben Kelleher, managing director retail and business banking for ANZ, said it was confident remaining bondholders would receive a share of reserves over and above their original investment.

"While the process to confirm the final amount that each bondholder is entitled to is complicated and may take twelve months or more, we expect to distribute a large portion of what each bondholder is entitled to sooner than this.

"If this happens bondholders will receive their total distributions in more than one payment."

Redemption requests received before 9pm on October 31 would continue to be processed and paid.

Bonus Bonds were launched by the New Zealand Government through the Post Office in 1970 and the scheme was then bought by the ANZ bank.

Instead of getting interest on their investments savers went into a monthly draw to win a prize of up to $1 million but the odds of winning a prize were low and had been getting worse.

Advertisement

Advertise with NZME.

Last year's annual report said the average odds were one in 32,294 of winning a prize in any given month, down from one in 26,875 in its 2018 financial year.

It has also come under fire in recent years for its high levels of fees compared to payouts for investors.

Advertisement

Advertise with NZME.

Latest from Business

Premium
Business

Insider-trading accused distances himself from Eric Watson

19 Aug 05:00 PM
Business

Shamubeel Eaqub on 'stupid' inflation debate and how he'd fix poverty

19 Aug 05:00 PM
Premium
Business

Mary Holm: I have $50,000 in cash - should I pay down my mortgage or invest?

19 Aug 05:00 PM
Premium
Business

Steven Joyce: School shake-up needed for the sake of our kids

19 Aug 05:00 PM
Premium
Business

Fran O'Sullivan: Sharma affair is a mess — 'reject' that, Ardern

19 Aug 05:00 PM

Most Popular

Premium
Insider-trading accused distances himself from Eric Watson
Business

Insider-trading accused distances himself from Eric Watson

19 Aug 05:00 PM
Shamubeel Eaqub on 'stupid' inflation debate and how he'd fix poverty
Business

Shamubeel Eaqub on 'stupid' inflation debate and how he'd fix poverty

19 Aug 05:00 PM
Premium
Kingpin bowled: Inside the downfall of a drug lord
New Zealand|Crime

Kingpin bowled: Inside the downfall of a drug lord

19 Aug 05:00 PM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP