Thanks to everyone who joined our ‘Moving money from deposit’ webinar – we had great engagement from Financial Brokers both during and after the call. Today I want to touch on a few of the points that we raised during the session, and also answer some of the questions that we received.

As a starter, I think we are all very aware of the opportunity for customers to earn better returns by investing their money in multi-asset type funds over leaving money on deposit. A number of Financial Brokers brought up the 41% rate of exit tax (compared to the 33% rate of DIRT). This is a very valid query – exit tax is out of sync with other forms of taxation. But I would argue that given the potential for much higher returns on an Investment Bond over money on deposit, it is an argument worth making to a customer.

If we look at a real life example of someone who invested €35,000 over 8 years ago then I think it makes a compelling story:

Given than the equivalent deposit rates had been close to 0% over that same time period, it really make a good story for the customer. We are seeing interest rates rising – with local banks offering headline rates of >2% (before DIRT of 33%) so I’m sure some customers will be swayed by those – but the long-term argument for investing is compelling. And maybe 41% tax is taking the glass half empty view, 59% of any return is tax-free! None of us love tax but you’re only paying tax when you’re making money and paying some tax on some returns is better than paying no tax on no returns.

To recap:

• One simple online application form
• No further admin, annual tax returns or tax payments
• Award winning investment management with >30yr track record
• Asset allocation and ongoing active management
• Range of investment options across different risk levels
• Tax deferred
• Clear and cost effective pricing
• Ability to withdraw funds at any time
• Online portal giving current value of investment both before and after tax
• Experience and financial stability of a global insurer

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A little more risk is proving popular with savers in order to increase their chance of making a better return on their money.

One popular alternative home to money held on deposit is an Investment Bond with Zurich.

Autoinvest from Zurich is a phased investment strategy, where you drip feed your funds into the market over a period of time.

Watch the playback of our recent investment webinar where the team at Zurich discuss the options with regard to your clients lump sum savings and why we think they should consider an Investment Bond.

Please note CPD does not apply when viewing the playback. 

For every new Zurich Investment Bond customer that you submit online to Zurich, we will pay you a €100 bonus payment (on top of the normal product commission) based on the terms and conditions set out in the attached flyer.