Understanding the term of your investment

To make your money work harder so you don't have to it's important to understand the key features and terms around your investment. Or if you'd prefer a video explaining it to you rather than reading, jump over here to watch JB's 15 minute simple presentation.

Regular repayments  

Our Investors choose the minimum interest rate they are willing to accept on their investments between a range of 7% and 9% p.a., depending on the investment term. Repayments (including principal and interest) are then made on a regular basis back into their Squirrel Money account, ready to reinvest or withdraw as a monthly income. To date, our Investors have earned an average net return of 8.6% p.a. We're pretty proud of these returns and believe them to be hard to beat. 

The power to get your money out early - Secondary Market 

We get that sometimes things can change. We provide a Secondary Market which gives Investors the opportunity to seek to sell an investment at any time. In this case, we’d attempt to match your investment with other Investors who are happy with your existing investment terms and are keen to take it on. Please note that the Secondary Market relies on other willing Investors taking up the loans put up for sale. If no willing Investors are available, the original Investor may not be able to transfer their interests in a loan and may be required to remain invested in that loan for its full term. 

For more information on the rules that apply when selling an investment, read our Secondary Market Policy. For details about the fees associated with selling an investment via the Secondary Market, please review the Fees section of our website. 

Manage your investment anywhere, anytime

Once you’ve set up your investment entity in our platform, the Squirrel Money app will let you quickly and easily manage your ongoing investments. Manage. View. Stay updated. All of this power in the palm of your hand.

Download now from either the App Store or Google Play. 

For more information about investing with Squirrel Money download our Investor Booklet. Or watch JB's presentation here.

What sort of return can I expect with Squirrel Money?

Investors in the Squirrel Money platform have locked in an average investor interest rate of approximately 8.6% p.a.1 with investments made over 2, 3 and 5 years. This return compares pretty favourably against the returns achieved across alternative asset classes in New Zealand. Squirrel Money's online lending platform enables a lower cost operating model, with the benefit passed through to both investors in the form of higher returns and borrowers with lower interest rates on loans. With regular monthly principal and interest repayments, investments in Squirrel Money can be used as a source of regular income. The chart to the right illustrates the repayment profile of a $10,000 loan over five years at an investor interest rate of 8.5% p.a.

The below table provides a summary of the indicative repayments an Investor can expect to receive across varying levels of investment in a 5-year loan at an investor interest rate of 8.5% p.a. (before tax).

How a 5 year loan (investment) repays

1 The investor interest rate is pre-tax. It is lower than the interest rate paid by a borrower, due to the margin paid to Squirrel Money (between 1.0% - 3.0% p.a.) and the applicable reserve fund levy. Investor returns can vary between investment terms.

Example of Investor repayments  

Investor repayments* 1 year 2 years 3 years 4 years 5 years Total
$10,000 Investment Interest Principal Investor repayments   $793 $1,541 $2,333   $652 $1,744 $2,396   $496 $1,970 $2,466   $319 $2,226 $2,545   $119 $2,518 $2,637   $2,377 $10,000 $12,377
$50,000 Investment Interest Principal Investor repayments   $3,963 $7,704 $11,666   $3,259 $8,722 $11,981   $2,479 $9,850 $12,330   $1,593 $11,133 $12,726   $592 $12,591 $13,183   $11,886 $50,000 $61,886
$200,000 Investment Interest Principal Investor repayments   $15,851 $30,814 $46,665   $13,034 $34,890 $47,924   $9,917 $39,401 $49,318   $6,372 $44,530 $50,903   $2,370 $50,364 $52,734   $47,544 $200,000 $247,544

*This summary assumes repayments are received on a monthly basis and include both principal and interest. Repayments may be at other regular intervals based on the terms of the loan.

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