The Shift away from Bank Alternatives

The continued lowering of interest rates by the Reserve Bank in the last few years has presented numerous problems with investors that are heavily weighted toward cash investments.

Historically, cash investments held with the major financial institutions were seen as the safe investment method, with solid 4 to 5% p.a. returns available together with a government backed guarantee on your investment.

Retirees were banking on the continued ability to receive that sort of interest rate but more recently with the Reserve Bank lowering the interest rate to just 1.0%, retirees have seen their interest income eroded and reduced by more than 80%, putting at jeopardy some of their retirement planning. The reduced inflows have also in some instances had a material impact on the lifestyle enjoyed whilst in retirement and even forced some to return to work.

As a result, retirees and self-managed superannuation funds are looking for better returns on their cash holdings and investments and turning to groups like Ezecapital to access income generating investment opportunities.

We meet with investors who are continually frustrated at the low rates of return that they are getting on their cash holdings with the major banks, particularly when the major banks are using these funds to invest and lend to others, whilst making record profits, year after year.

Ezecapital decided to do something for the "little guy" and has helped qualified investors access term based investments which are returning between 3.5% to 12% p.a with monthly interest payments. These types of investments are usually reserved for the wealthy, stockbrokers, family offices or investment banks. Investments are accepted from individuals, self-managed superannuation funds, companies and trusts.