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.
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
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
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.
Warning: Past performance is not a reliable guide to future performance.
Warning: Benefits may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in these funds you may lose some or all of the money you invest.
David Walls Head of Investment Sales
Zurich Life Assurance plc Zurich House, Frascati Road, Blackrock, Co. Dublin, A94 X9Y3, Ireland. Telephone: 01 283 1301 Fax: 01 283 1578 Website: www.zurich.ie Zurich Life Assurance plc is regulated by the Central Bank of Ireland.