Investing FAQs

With FAI Money, you're investing in secured first ranking deposits. What does this mean? It means that your investment is secured over all of the present and future assets of the Company. In the event of insolvency, there is no other charge over all of the assets of the Company that would rank above a secured first ranking deposit other than claims of the Trustee and any receiver, claims of the holders of any prior ranking charges and any claims given preference by law. Please read a copy of our investment statement for more detail.

The minimum deposit is $1,000. Amounts over $100,000 are accepted at the discretion of FAI Money and may qualify for special rates of interest. Contact us for more details.

You can invest your money from as short a period as 30 days right up to 5 years if there is a relevant rate being offered. Check out our rates table for more details on our currently available rates and terms.

You can choose to have your interest paid to you in one of the following methods:

1. Regularly paid income
   
   You receive a regular income from your investment by having interest paid to you monthly, quarterly, six monthly or annually by direct credit.
   
   Monthly interest is paid on the last day of the month.
   
   Quarterly interest is paid on the last days of March, June, September and December.
   
   Six-monthly and annual interest is paid on the last days of March, June, September and December, whichever next occurs after the date that is six months or one year after the date of your investment, as the case may be.
2. Quarterly compounded - greater returns
   
   Your original investment grows by having your interest compounded and added to your investment at the end of each quarter (on the last days of March, June, September and December).
3. Capital growth deferred interest payment
   
   The interest is calculated at a flat rate for the term of the investment (minimum term of one year) and is only paid out when the investment matures.

To keep you informed about your investment, we send out Interest Statements when your interest is due which tell you how much interest you have earned and the tax being paid on the interest. We will also tell you about any new special offers, some of which are exclusive to existing customers.

No, FAI Money does not charge any application or management fees. However, an early withdrawal fee may be charged, by adjusting the interest earned, for any partial or full withdrawals prior to maturity.

FAI Money’s core lending activity to date has been focused on the consumer and retail sectors through personal and debt consolidation loans which spreads the risk across a larger number of borrowers. However, with the declining availability of financing to individuals and businesses FAI Money is now ideally positioned to provide lending to other sectors should the opportunity arise. In this regard, FAI Money’s philosophy is to:

• aim to deliver long term growth of the business across a range of asset classes and product categories (including in the consumer, retail, commercial and property sectors), while managing risk; and
• continually review the mix of our portfolio and assess new areas in which to expand, both in relation to our lending and investment categories and the geographical locations of borrowers and securities.

We believe that this approach allows for increased asset class diversification for investors and will provide for good levels of return while at the same time managing risk.

Yes you will. Interest earned will have an effect on your taxation and this will vary according to your individual circumstances. For all New Zealand residents Resident Withholding Tax is payable and FAI Money will deduct the tax for you prior to the interest being paid or compounded, unless you have already provided us with a valid Certificate of Exemption. For investors who are not a New Zealand resident we will deduct non-resident withholding tax at 10% or 15% depending on where you live.

Secured term deposits are fixed term investments and as such the interest rates are offered with the expectation that the funds will not be withdrawn until maturity. Therefore, investors do not have the right to withdraw their investment before maturity.

However, we can consider early redemption in the case of financial hardship or if a sole investor dies and the ownership must be transferred. We must receive an application for withdrawal in writing with all the details provided and if early withdrawal is allowed FAI Money may charge an early withdrawal fee by adjusting the interest earned on the secured deposit.

Yes you can arrange to transfer ownership of your investment to another person at FAI Money's discretion and provided you retain a minimum of $1,000 invested. Simply contact us for a transfer form.