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Catching life’s curveballs: Why an emergency savings account is your best defence

A thought leadership piece by Will White, General Manager Retail & Reverse Mortgages, Heartland Bank.

Life can throw unexpected curveballs. You wake up to a flooded bedroom, your car engine fails right before work, or a family emergency means urgent overseas travel and extended time off work. These are real, stressful situations that can leave you feeling uncertain about the future. And often, the biggest question is: how will I pay for this?

New research from Te Ara Ahunga Ora Retirement Commission has revealed some eye-opening insights into how New Zealanders are really feeling about their finances right now. Of the thousands of New Zealanders surveyed, financial discomfort is pretty common, with 56% of people feeling the pinch. Almost half (44%) don’t have an emergency savings fund, 42% are worried about their finances between pay days, and 30% are concerned about their debt levels. In 2025, just 38% of women reported feeling financially comfortable, compared to 49% of men – widening the financial comfort gap between genders over the past four years.

August is Sorted Money Month, and this year is all about the importance of having an emergency savings fund – and I couldn’t agree more. These figures from the Retirement Commission highlight just how important having an emergency savings fund can be for New Zealanders. Having a cushion of savings set aside provides peace of mind when the unexpected happens – even a small amount can make a huge difference in reducing stress and avoiding debt.

Could your money be working harder?

If you have some money set aside already, let me ask you this: could your money be working harder? There’s growing complacency when it comes to saving money. Keeping savings in everyday accounts that earn little, or no interest could mean your money isn’t growing and may even lose value over time due to inflation. I’d recommend reviewing your financial setup and considering shifting some money into an interest-bearing account to boost your returns.

If you’re going to place some of your savings on term deposit, I think it’s a good idea to diversify your savings across various term lengths, making sure you have funds maturing regularly. For instance, keep some money readily accessible in a call account while placing other funds in term deposits of 6, 9 and 12 months, so you consistently have savings available in the short to medium term. Heartland Bank also has two Notice Saver products, where you can access your funds by giving 32 or 90 days of notice.

Of course, New Zealanders’ financial needs change throughout their lives – a baby comes along, the grandkids are graduating university overseas, health emergencies may come up, or unexpected job changes could result in extended periods of unemployment. As your needs and goals change, consider how you might need to adjust your savings set up. Heartland Bank offers a range of savings products that suit different needs – and these are designed to help your money grow, while staying easily accessible in emergencies. Third-party comparison websites like interest.co.nz are a great way to check for the best rate in the market.

Out of sight and out of mind

I think one of the smartest moves you can make is keeping your emergency savings separate – I don’t just mean in a different account – ideally at a different bank. This ‘out of sight, out of mind’ approach helps avoid the temptation to dip into funds earmarked for emergencies.

When considering where to put your savings, choosing a smaller, locally owned bank like Heartland Bank means your savings are in specialist hands, focused entirely on serving New Zealanders. We’re nimble, responsive, and dedicated to providing products that truly meet your needs.

I might sound biased, but we’re not the only ones who think we do savings well. Heartland Bank has been named Canstar’s Savings Bank of the Year for the eighth year in a row, with four of its savings products earning a 5-Star Rating with Canstar’s Outstanding Value Award.

Canstar recognises the institution with the strongest combination of savings solutions in the market, judged on price, features, savings tools, and flexibility, alongside competitive term deposit offerings.

Getting this external industry recognition solidifies what we already know – we offer great savings accounts.

The Depositor Compensation Scheme (DCS)

Another factor to consider when spreading your savings is the protections afforded to you with the Depositor Compensation Scheme (DCS). The DCS is implemented by the Reserve Bank of New Zealand and is a significant step forward for our country’s financial system. It provides protection of up to $100,000 per depositor, per licensed bank on eligible accounts – including transaction accounts, savings, notice saver accounts, and term deposits – in the unlikely event that a bank fails. This means that you can spread your savings across multiple DCS-covered institutions – knowing that your hard-earned cash is protected.

Start building your emergency fund today

Setting up a savings account isn’t what it used to be. Heartland Bank offers a range of on-call accounts and term deposits which can all be set up from the couch, boat, library, café – all you need is an internet connection, a device, your IRD number and your New Zealand Government issued ID. You can also track your growing balance using the Heartland Mobile App.

Don’t get caught short when life’s curveballs come flying by – start building your emergency fund today.

 

This information has been prepared without taking account of the needs, objectives or financial situation of any particular individual. Information provided is accurate as at 22 August 2025 and may change from time to time. Heartland Bank’s current Disclosure Statement, Product Fact Sheets and Account and Service General Terms and Conditions are available at heartland.co.nz.


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