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Cash Management Accounts

Cash is a key component of any investment portfolio. That is why we established Craigs Investment Partners (CIP) Cash Management Accounts offering competitive returns for your on-call deposits. CIP Cash Management Accounts provide a convenient means of holding cash within your investment portfolio. Funds can be held in NZD and a range of foreign currencies and invested as on-call deposits offering competitive rates.

Think of your Cash Management account as a method to simplify the processing of receiving dividends and settling any purchase or sale of shares and fixed income. It is essentially a bank account to manage all your incomings and outgoings in regards to your investment portfolio.

At a Glance

  • On-call accounts available in NZD and a range of foreign currencies.
  • On-call accounts may offer tiered interest rates. This means the interest rate increases for higher balances.
  • On-call accounts enable convenient and timely settlement of your share and fixed income transactions and direct crediting of dividends and interest coupons in the relevant currency.
  • Monthly compounding interest for on-call deposits.
  • Custodial Services clients may also access term deposits of up to one year in NZD and selected foreign currencies.

Frequently Asked Questions

Click on each of the headings below to find answers to questions you might have about our CIP Cash Management Account Service.

Who is providing CIP Cash Management Accounts for me?

CIP Cash Management Nominees Limited, a subsidiary of Craigs Investment Partners, was established in 2010 to hold funds as a bare trustee on your behalf.* The Cash Management Nominee holds on-call pooled cash management accounts with ANZ Bank New Zealand Limited or another bank registered in New Zealand.

What sort of investment is this?

The Cash Management Nominee subscribes for and is the holder of the respective bank unsecured debt securities constituted by the pooled cash management accounts. Funds held on your behalf in the pooled cash management accounts will be recorded in Cash Management accounts in your name.

How easy is it to access my account?

Cash Management Account transactions can be completed via the phone, email or in writing. Funds in all currencies can be credited to your Cash Management Account via direct credit, cheque or telegraphic transfer. Withdrawals can be made in NZD and selected foreign currencies and transferred to your nominated bank account or paid by cheque. Notification of any transaction needs to be received by 1pm on any business day.

What interest will I get?

Interest on on-call deposits is calculated daily and compounded monthly and for term deposits interest is calculated daily and paid at maturity.

The rate of interest paid on each currency is based on the prevailing wholesale rates. On-call rates are tiered for on-call deposits of NZD and AUD so the higher the amount of funds, the higher the interest rate. All other currencies earn a flat rate of interest or nil interest for on-call deposits. Term deposit rates are set each day based on wholesale market levels.

How do I withdraw my investment?

You can withdraw part or all of the on-call deposits at any time once any deposits have been cleared through the relevant banking system by notifying your Adviser by 1pm on any business day. Should you wish to close your Cash Management Accounts you must notify CIP Cash Management Nominees Limited in writing.

Is there a minimum balance needed to operate the account?

No. However, if an account has a zero balance or is inactive for a period of time, we reserve the right to close the account at our discretion.

What fees do I pay?

Cash Management Accounts are not subject to annual account fees, entry fees or exit fees. The Cash Management Nominee reserves the right to charge certain fees e.g. cheque dishonours or third party fees on foreign exchange transactions. The Cash Management Nominee charges the appropriate bank commission in respect of funds held in Cash Management Accounts. This commission is taken into account when the interest rate on CIP Cash Management Accounts is set, such that the interest rate is correspondingly lower by an amount equal to the actual rate of commission charged. Further details are included in your Advisers Disclosure Statement which is available on request and free of charge.

How do tax payments work?

Under current legislation investors are required to provide their IRD number and their rate of taxation, being 10.5%, 17.5%, 28% (companies only), 30% or 33%, or exempt if an Exemption certificate is supplied by the IRD.

Investors who fail to notify the Company of their requirements will have Resident Withholding Tax deducted at 33%. Overseas investors should discuss alternatives with their Adviser.

* Terms and Conditions apply. Craigs Investment Partners Adviser Disclosure Statements are available on request and free of charge.