Marac unveils non-guaranteed deposit rates

The company will offer its existing investors a rate of 6% for six-month deposits, and 7% for 12-month terms. That is a premium of 75 basis points in the half-year range, and 125 basis in the 12-month space.

The government’s retail deposit guarantee has generally cost investors 100 basis points in interest as deposit-takers passed on the scheme’s fees.

The government amended its current scheme to allow deposit-takers to offer both covered and uncovered debt securities, something Marac lobbied hard for.

PGG Wrightson Finance, the finance arm of listed rural services company PGG Wrightson, is also offering uncovered deposits.