Bonus Bond Demise-replacement option??

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Forums › Finance and wealth management › Bonus Bond Demise-replacement option??

psychrn

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#278445 16-Oct-2020 15:28

My work colleagues and I have been putting in money every 2 weeks to Bonus Bonds for our Christmas club to withdraw in December every year for xmas expences.

Now that Bonus Bonds are about to disappear is there any suitable replacement with a similar objective.

The default unit was $25 and some people paid in more than 1 unit say up to 4 every payday which was fortnightly.

Obviously saving schemes are not so good for the same reason as Bonus bonds closed down. 1 % if you are lucky.

Any ideas.

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littlehead

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#2586373 16-Oct-2020 15:50

If this about Christmas expenses specifically, have a look at all the Christmas Club offerings from the supermarkets and The Warehouse. Countdown gives you a 5% bonus for funds deposited before 1 December. PaknSave and New World both rates equivalent to between 3.4 and 6.4 percent depending on when you deposit funds. The Warehouse is slightly different in that it gives you a 5% bonus of the goods you purchase, effectively giving you 5.26% extra funds.

Downside is that these are only available from these stores only, however despite being kind of old hat, Christmas Clubs can be quite good value. Personally I would avoid Chrisco and Hampsta, though I haven't really looked into them. They have just never felt right to me with their advertising etc. Probably fine as long as you know what you are getting into.

Edit: fixed percentages, PaknSave and New World min is 3.4%

psychrn

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#2586374 16-Oct-2020 15:57

littlehead:

If this about Christmas expenses specifically, have a look at all the Christmas Club offerings from the supermarkets and The Warehouse. Countdown gives you a 5% bonus for funds deposited before 1 December. PaknSave and New World both rates equivalent to between 6.4 and 6.4 percent depending on when you deposit funds. The Warehouse is slightly different in that it gives you a 5% bonus of the goods you purchase, effectively giving you 5.26% extra funds.

Downside is that these are only available from these stores only, however despite being kind of old hat, Christmas Clubs can be quite good value. Personally I would avoid Chrisco and Hampsta, though I haven't really looked into them. They have just never felt right to me with their advertising etc. Probably fine as long as you know what you are getting into.

I did think about supermarket christmas club as a matter of fact.

Yes I wouldnt touch Chrisco as they charge the earth and have higher fees structure.

Just the ability to have a nice some of money at your disposal at thye end of the year. I think the bonus bonds got us roughly $40 this year to spread around 20 people. So perhaps saving might might be just as good!!

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Dynamic

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#2586377 16-Oct-2020 16:07

I can't think of another similar investment where you are basically guaranteed to get your money back, except for term deposits which have pretty low interest rates but are virtually loss-proof.

You could look at Sharesies and go with a relatively safe but relatively low return fund, but you'd have to accept the risk of losses there. Some years, Christmas would be a little better. Some years Christmas would be a little worse.

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psychrn

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#2586380 16-Oct-2020 16:13

I can't think of another similar investment where you are basically guaranteed to get your money back, except for term deposits which have pretty low interest rates but are virtually loss-proof.

You could look at Sharesies and go with a relatively safe but relatively low return fund, but you'd have to accept the risk of losses there. Some years, Christmas would be a little better. Some years Christmas would be a little worse.

Thought about them as well. I have started with sharesies several months ago.

I have heard of families that each member sets up a sharesies account and at the end of the year the person with the most returns wins a prize or something similar.

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wellygary

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#2586388 16-Oct-2020 16:37

Dynamic:

I can't think of another similar investment where you are basically guaranteed to get your money back, except for term deposits which have pretty low interest rates but are virtually loss-proof.

ANZ were investing the Bonus Bond pool in ANZ term deposits anyway....

They were clipping the ticket at every possible opportunity so in reality they have done the country a favour closing it down....

afe66

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#2586521 17-Oct-2020 11:11

If the aim is just to spread the xmas costs over the year just stick it in a savings account and accept the lost income.

OK no interest but you can spend on anything if you don't want if you don't want to locking to a particular supermarket.

I wouldn't buy shares as will only be there for months.