Bonus Bonds disappearing

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Forums › Finance and wealth management › Bonus Bonds disappearing

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#2550383 26-Aug-2020 21:39

Years back after investing I told a friend he should put some money in as it was like being in a monthly lottery but you could always get your initial investment back. He bought $100 worth. The next month he won $10,000. Unbelievable. Mine only made the odd $20 and a couple of $100s over the years
I threw 6k at it many years ago after shares tanked and have some yellowed grotty looking certificates somewhere. Not looking forward to the search.

Better not complain about the pittance paid by banks in interest because the big plan seems to be heading towards negative interest rates where we pay the banks to hold our money.

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sbiddle

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#2550428 27-Aug-2020 07:21

nzkiwiman:

I started with $1000 in bonds approx 30 years ago and had it set to reinvest all winnings. I've made $465 in that 30 years and was waiting till I got to $1500 to cash up.

Guess I'll be doing that sometime in September.

That really just emphasises what an incredibly bad investment bonus bonds are.

If you had literally made any other investment in the world with that money you would be significantly better off, potentially by thousands and thousands of dollars.

MikeAqua

6895 posts

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#2550444 27-Aug-2020 08:02

freitasm:

MikeAqua:

I had a $5 bonus bond gifted to me by each of my grandparents when I was born (>39 years ago 🙄). I've kept all four bonds, all this time, for sentimental reasons

Who can guess how much money I have won in all that time?

No idea - but please don't keep us waiting... What's the number?

Zero, zip, nada, zilch, donuts, absolutely nothing.

And keep in mind that in the 1970s and 1980s you could get interest on savings in the teens.

Mike

MurrayM

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#2550513 27-Aug-2020 09:59

I've just cashed out my old bonds, the website was up and working ok this morning. You have the option of cashing out straight away or after the next draw; since the next draw is only in a few days time I decided to go for that option (hey you never know, I might just get lucky!)

I was thinking of investing my $200 that I'll be getting back into Sharesies and maybe setting it up to automatically put in $10 or so a month so I can see it slowly grow. But then I heard of Hatch and it seems very much like Sharesies but without a monthly fee. Has anyone done a comparison to see which is better for a small investor (eg starting off with a few hundred dollars and slowly building up from there)?

Gordy7

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#2550577 27-Aug-2020 11:26

Cashed up my BBs last night. Money in my bank account by 9.15am today.

Gordy

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kevinr123

5 posts

Wannabe Geek

#2550632 27-Aug-2020 11:56

I have had $550 in bonus bonds since 2015 (never won anything)... I have been thinking for a while of putting it in sharesies but now not sure whether it would be worth keeping it in during the wind-up phase (is it likely there would be much left over?) ? ... Keen to know what others think would be best to do with it..

nova

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#2550640 27-Aug-2020 12:09

Sam Stubbs wrote an article today in Stuff suggesting that it might be worthwhile sticking it out for the windup process:

https://www.stuff.co.nz/business/opinion-analysis/300092552/heres-why-the-best-time-to-own-bonus-bonds-might-be-now

The argument for this is that there is an additional reserve fund of $56M that will be divided up between bond holders at the end of the windup process, so although you will have to wait a year to get the money, you will get extra back if you wait. The catch is that windup expenses will be deducted first, which should be low, but depends on how much you trust ANZ...

Oblivian

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#2550641 27-Aug-2020 12:10

This would be the busiest the banks been in years, shame they're not making anything out of all the people withdrawing on a per transaction basis

SirHumphreyAppleby

1988 posts

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#2550670 27-Aug-2020 13:18

nova:

The argument for this is that there is an additional reserve fund of $56M that will be divided up between bond holders at the end of the windup process, so although you will have to wait a year to get the money, you will get extra back if you wait.

Or less. They're not ruling that possibility out.

mattwnz

18765 posts

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#2550748 27-Aug-2020 15:23

Oblivian: This would be the busiest the banks been in years, shame they're not making anything out of all the people withdrawing on a per transaction basis

That reminds me of an idea one political party had for a financial transaction tax. I am wondering if they expect a lot of people to spend the money as many peopel wouldn't have large amounts, and will be a form of economic stimulus

Inphinity

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#2550772 27-Aug-2020 16:06

Their process for withdrawal is ridiculous if you are not an ANZ customer. My 1 year old had some bonus bonds gifted by a grandparent for her birthday. Now I am told she has to rock up to a bank in person with her birth certificate and sign a release form to get the money. Apparently my argument that at 1, she can't yet sign her name, is irrelevant.

mattwnz

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#2550800 27-Aug-2020 17:20

Inphinity:

Their process for withdrawal is ridiculous if you are not an ANZ customer. My 1 year old had some bonus bonds gifted by a grandparent for her birthday. Now I am told she has to rock up to a bank in person with her birth certificate and sign a release form to get the money. Apparently my argument that at 1, she can't yet sign her name, is irrelevant.

I was able to set it up with my bank (TSB) all online directly with Bonus Bonds via their website, when we were in level 4 lockdown, as it wasn't possible to visit a bank.

eracode

Smpl Mnmlst
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#2558000 6-Sep-2020 17:28

Inphinity:

Their process for withdrawal is ridiculous if you are not an ANZ customer. My 1 year old had some bonus bonds gifted by a grandparent for her birthday. Now I am told she has to rock up to a bank in person with her birth certificate and sign a release form to get the money. Apparently my argument that at 1, she can't yet sign her name, is irrelevant.

Get her to sign a Power of Attorney in your favour. 😀

Sometimes I just sit and think. Other times I just sit.

PurpleMonkey

5 posts

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#2558001 6-Sep-2020 17:29

Anyone that hasn’t cashed out yet that’s considering going through the wind-up process?
We are considering it, though haven’t sort financial advise yet and not 100% sure on all the risks involved.

MurrayM

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#2558203 7-Sep-2020 09:03

PurpleMonkey: Anyone that hasn’t cashed out yet that’s considering going through the wind-up process?
We are considering it, though haven’t sort financial advise yet and not 100% sure on all the risks involved.

I think the only risk involved is that you'll have to wait up to 12 months to get your money and may not get any extra.

I only had a couple of hundred worth of bonds and the news reports I read said people may get something in the range of 1.5 - 3% extra if they go through the full wind-up process. So for me it wasn't worth it for just a couple of dollars more. The exact amount extra you'll get will depend on how many other people elect to stay in the scheme and not withdraw early, and how much the ANZ takes from the fund in fees.

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