This was posted 4 months 6 days ago, and might be an out-dated deal.

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On-Call Savings Account, 5.25% P.A Interest Rate @ Squirrel


I've been hunting around for a good savings account and this seems to be the best I've found. Pays the highest interest for on call money, way higher even that Sharesies new savings account. Looks like it is accessible 7days a week too. I've used Squirrel on the mortgage broker side, and they were really good to deal with. I've signed up to use their savings account now, and the registration process was easy. There doesn't appear to be any fees either. This looks to be way better than what I've been getting at my bank.

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Referral: random (11)

Referrer Gets $50, Referee Gets $100 (after $100 Deposit)

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  • More info/discussion from previous deal:

  • There isn't much left after tax

  • +3

    Are you from Squirrel OP? Reads like it.

    • +1

      Agreed with every other comment from you, but I don't think this reads like that at all.

      • +1

        Fair. Just seems quite complimentary of Squirrel for an account that was created just to post this offer.

        It’s also a decent offer so I could definitely be wrong.

        • +1

          Yeah, it is. But it's better than any other offer in the market that I'm aware of.

    • +3

      No I don't work for Squirrel, but I have been a Squirrel customer. They helped me out with my home loan a while back. From what I have looked at on Squirrels website, they seem pretty straight up. I've opened an account and put a small amount of money in to see how it goes.

      • +1

        Sounds good. Thanks for the response Kes.

  • +1

    How are Squirrel accounts structured?

    Here's how it seems to me at first glance:
    When you register you're given an account called an "Investment Account" and that's basically a cash account for unused funds, and where the in/out transactions occur.
    Then as a separate action you can choose to set up a Call account which requires you to provide additional registration evidence, and you need to manually transfer money to it from your Investment Account.

    If I'm wrong in these assumptions please let me know.

    • +2

      Investment account is the investing entity (i.e. individual, joint or trust) and the call account is where you deposit funds and the in/out transactions occur. No additional manual transactions once the money is deposited in order to earn interest. Hope that helps.

      • I think this is correct from going through the set-up process

  • +1

    I would be very cautious putting money into such a nonbank entity. In order to make money from loans in such a high interest rate environment they will need to charge around 2% higher on the loan. But who's going to borrow money from them if those people couldn't even get a loan from banks. Also imagine if those people couldn't pay back their loan.

    Also I would recommend to check out why SVB bank collapsed.

    • Do some reading on this before you say anything.

  • +3

    Not worth. 25 percent on top compared to a high rated rabobank

    • +1

      Be rewarded with premium interest when you are actively saving every month - Squirrel doesn't have this requirement.

      Squirrel funds are held in a trust with BNZ.

      You sure?

  • I know Squirrel is P2P is this savings account also P2P?

    • +3

      "What does Squirrel do with my money?

      Any money that you put into your Squirrel On-Call account is held in a bank deposit with S&P AA- rated NZ registered main banks. To be 100% clear, the money isn't invested anywhere other than at a bank."…

      It's in Squirrels trust account with BNZ.

  • Not as good as Hanover Finance that were offering 12%+ a few years ago :-O

  • I don't think they offer a PIE option which will cost you extra tax if you are on one of the 30%+ rates.

    I am also unsure how safe your funds would be if squirrel went under like the finance companies of yesteryear

      • +1

        That's not really relevant, in case of a collapse where would you be in order of preference of creditors? For example if they had unpaid tax your deposits may be there, but they could get used to pay the IRD.

        • Yup that's fair comment. I don't know much about how that works personally, but they have it in a trust which may possible protect it from that? I'm really not sure.

      • +1

        Money is with BNZ.

        One way to think of this:

        Squirrel want to borrow money, and are offering you 5.25% (say) to lend to them.

        Why would they want to pay you 5.25%, rather than borrowing from, say, BNZ or Westpac?

        We can reasonably infer that BNZ and Westpac (and probably all the other banks) have assessed the risk of lending to Squirrel, and decided that the required risk premium is such that they would need to charge more than 5.25%.

        So, now you have to decide whether you know better than the people working at those banks who do this for a job.

        Other factors do come into it, such as cost of capital - maybe yours is lower than the banks, and hence you are actually getting a higher premium. Only you know.

        • They're not using your money for anything other than storing it in a BNZ account and collecting probably 5.5+% on it while they pay you out 5.25%.

          • @Jexla: Perhaps, but the question remains, why they want to borrow from you at 5.25% rather than from anywhere else - what are professional lenders requiring as a risk premium, and what do you know that those professionals don't?

            • @Alan6984: You're not making any sense. They're not borrowing from you.

              • @Jexla: Really? What would you call it when A receives money from B and pays interest.

                Sounds like B is loaning money to A to me.

                • @Alan6984: Ok, then you've not understood the rest of the conversation. Have a read back.

                  • @Jexla: Re-read it - still sounds like you are talking about lending money to Squirrel, and they pay you interest on the amount they have borrowed from you.

                    Its pretty simple when you actually stop seeing the flashing returns, and think it through. Just ask anyone that lent money to Hanover or any of the other finance companies a few years ago - some of the same things they were failing to consider as well.

                    • +1

                      @Alan6984: You've missed it again mate.

                      "Hanover Finance was a New Zealand non-bank finance company that focused on lending for high-risk property development"

                      They invested your "Borrowed" as you like to call it - Money in to high risk investments.

                      Squirrel invests it in an AA- rated (BNZ) savings account.

                      Can you possibly understand how those two things are different?

                      • @Jexla: Of course the two businesses are different, as are any two businesses at all, but that has nothing to do with the point I made above at all.

                        If you don't think you are lending your money to Squirrel, then that is entirely up to you. It doesn't change the reality in any way, but if you want to ignore the substance of the transaction, that is your call.

                        • @Alan6984: Dude, I'm not saying the BUSINESS is different. The USAGE of the money is different. You are daft.

                          • @Jexla: Okay - time to stop discussing when you can only think to throw out insults.

                            Please carry on with your not-loans to Squirrel.

  • +1

    Read the section: ​What if a borrower doesn’t repay a Squirrel loan?

    • In such circumstances, all investors would, in the first instance, receive a haircut on their interest repayments until the reserve fund is replenished.
    • Only in the case that the Reserve Fund cannot be replenished using future interest repayments alone would investor principal be at risk.

    Also read Risk Section here:…


    Also I couldn't find info regarding RBNZ compliances so assume it wouldn't also be part of the upcoming "Depositor compensation scheme"

    "New Zealanders will have up to $100,000 of their deposits in any eligible institution guaranteed in the event that institution fails, under legislation introduced in Parliament today."…

    Also recommend looking up squirrel on FMA:…

    • You're talking about a different product entirely.

    • From what I can tell, the information you've raised is true if you invest in Squirrels term investments. The On-call Account is different though as the money is simply held with a major bank - others in this post have said BNZ. So the risk is on the bank, not on Squirrel loans?

      • I believe this to be correct. Though I don't know what would happen if Squirrel went under.

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