60. Savings Accounts vs Cash Funds

As Kiwis, we’re savers at heart. Generally speaking, we tend to rely on savings accounts to grow your short-term money. But are there investment funds that might also be suitable for getting you to the same goals? 

*Cash Funds enter the room* 

The funds that Cat reckons are getting a glow-up in 2023. 

So what are these types of funds, why use them and how do they compare to savings accounts? We cover all this and more in this episode. 

Specifically, we chat about: 

• Differences in cash availability, fees, estimated returns and more, when looking at on-call accounts, notice-saver accounts, term deposits, and cash funds
• The relationship between the Official Cash Rate (OCR), interest rates and cash funds
• Whether conservative, cash and defensive funds are the same thing
• Why tax matters when deciding between cash funds & savings accounts

Check out the resources mentioned during the episode: 

• Interest.co.nz - interest rate comparison
• FMA - asset allocation within funds 

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Disclaimer:
Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.

Any information we provide is general only and current at the time of writing.

Kernel Wealth Limited is the manager and issuer of the Kernel KiwiSaver Plan and Kernel Funds scheme. The Product Disclosure Statements are available at www.kernelwealth.co.nz