If you've recently felt like your money doesn't quite stretch as far as it used to, you're not alone. Whether at the fuel pump, the supermarket, or even just paying your power bill, prices seem to be stuck on "high." But even though inflation has started to cool down, why are we still paying more than we did only a couple of years ago? Let's break it down. Discover how to fight back and make every dollar count with Universal Interest in Debut.
Rising Costs and the Power of Your Dollars 📈💸
When inflation was at its peak, prices across the board shot up. Even though the rate of inflation has recently eased up—dropping to around 4.0% recently (stats.govt)— price increases haven't magically disappeared. Businesses also facing higher costs aren't always quick to drop prices just because inflation is slowing down. So, while your income might not have changed much, what you can buy with your money has definitely taken a hit.
This is where the buying power of the New Zealand dollar comes into play. When prices rise, each dollar now buys you less than it did before. It's like trying to stretch a blanket that's suddenly too small—it just doesn't cover as much anymore. Traditional savings accounts can be like a leaky bucket—no matter how much you pour in, you’re still losing value if they don’t keep up with inflation. Most traditional checking accounts don’t offer any interest to speak of. So, the money you leave in those accounts could actually be losing value over time.
How Universal Interest Helps You Fight Back 👾🥊
At Debut, we’re building banking products differently. Universal Interest helps you level-up your money, ensuring it isn't just sitting there losing value—it’s actively working to grow and protect your buying power. With Universal Interest, you earn a competitive rate on all your money – your Cash Account and Savings Sheds. A little extra cash in your pocket can help offset these price increases and give Kiwis a fighting chance against inflation.
What is Universal Interest? Universal Interest lets you earn interest on every dollar across your entire Debut account, whether it’s in your savings or debit account. You always earn the same great rate across your daily account balance. Unlike other savings products, which might only offer 2-4% with strings attached—like minimum deposits or penalties for withdrawals—Universal Interest gives you a straightforward 5.10% P.A.* across your entire balance. No hoops to jump through.
*Interest rates are subject to change.
Let’s put this into perspective with a few examples:
The Savvy Saver 🛒
Making every dollar count in retail, our Savvy Saver earns $72 a year just by letting Universal Interest do the heavy lifting.
- Monthly Income: $2,600
- Monthly Savings: $260
- Average Monthly Balance: $1,170
- Monthly Universal Interest: $6.07
- Yearly Universal Interest: $72.90
The Family Builder 🍼
Balancing work, kids, and life in Wellington, our Family Builder earns $82 from Universal Interest each year.
- Monthly Income: $4,500
- Monthly Savings: $450
- Average Monthly Balance: $2,250
- Monthly Universal Interest: $6.88
- Yearly Universal Interest: $82.59
The Wealth Planner 🕶
Smart financial moves are the name of the game for our Wealth Planner, who nets $141 in yearly interest just by leveraging what they have in their account with Universal Interest.
- Monthly Income: $8,000
- Monthly Savings: $1,600
- Average Monthly Balance: $3,200
- Monthly Universal Interest: $11.77
- Yearly Universal Interest: $141.24
Please note: Debut aims to offer interest that exceeds the inflation rate to help Kiwis keep more of their hard-earned money. Interest is earned based on a percentage of your daily balance, and results may vary based on individual deposits and spending habits.
The Bottom Line
Even though prices remain high, and your dollars don't go as far as they used to, there's no reason to sit back and accept it. By choosing smarter financial options—like Universal Interest—you can make your money work for you, fighting back against inflation and preserving your buying power.
Inflation might be cooling, but that doesn’t mean you should sit back. With Universal Interest, you’re not just keeping pace—you’re taking charge.
Sources:
- Stats NZ reports on inflation (stats.govt).
- Data on average household bills and fuel costs (MBIE Govt NZ) (MBIE Govt NZ).
1 We aim to offer interest that exceeds the rate of inflation. Interest is earned based on a percentage of your average balance. Actual results may vary based on your individual deposits and spending habits.
Update: Some of the figures in our examples have been updated for correctness.
Update: Debut's Universal Interest rate has changed. Check the app for the latest interest rate.
