Frequently Asked Questions
How will the changes affect me as a depositor?
Q: What is actually changing?
In a practical sense, nothing. You will still be investing in a way that helps the Presbyterian Church, but your investment will be with Baptist Savings. Baptist Savings will be responsible for your account administration, interest, principal repayments and reinvestment.
Baptist Savings has agreed that:
- All existing PSDS term deposits will be administered by Baptist Savings under the same conditions
- PSDS will continue to evaluate all church loan applications and make recommendations to the Baptist Savings Board
- All Presbyterian churches with existing loans or requiring new loans will share the same preferred conditions as Baptist churches.
Q: Who are my investments being transferred to?
We have reached an agreement with Baptist Savings and Development Society Inc (Baptist Savings) which is a registered charity incorporated in 1962. Baptist Savings grew rapidly in the late 1980’s and has continued to grow steadily to a deposit base of around $100 million. An investment statement from Baptist Savings is available on the Baptist Savings website www.baptistsavings.co.nz.
Q: When will my investment be transferred to Baptist Savings?
We are required by law to receive authority from you before any transfer can be made. We will be transferring deposits authorised by you from 31 October 2014 up to and including 19 December 2014. If the dates change, you will be notified.
Q: Why can’t my investment stay with Presbyterian Savings?
We are required to comply with regulations, including the Financial Markets Conduct Act and the Non-bank Deposit Takers Act. Recent changes to exemptions means the cost of compliance for us will increase by $350,000.00 – $500,000.00 per year, so we had to make a choice: either refund all investments, which results in withdrawing all loans to Presbyterian churches, or transfer all investments and loans to another similar organisation to us, to ensure loans to Presbyterian churches continue.
Q: Is Baptist Savings exempt from the Changes?
No. Baptist Savings are subject to the same changes as Presbyterian Savings. The difference is that Baptist Savings are already big enough to absorb the increased costs.
Q: Why not refund all investments?
If all investments were refunded automatically, we would be invoking an early maturity requirement and therefore be required to pay the full-term interest on the investment. This would have a severe impact on the funds available for our grants programme. More importantly though, by transferring investments and loans to an alternative provider, your investments are continuing to support the Presbyterian Church through funding the Church Building loans.
Q: What options do I have with my term deposit?
Your options are detailed in the Consent Form recently mailed to you. Please complete it and return it in the self-addressed envelope (preferably on or before 24 October 2014)
Q: I support the Presbyterian Church, so why should I invest with Baptist Savings?
Baptist Savings will provide funding for loans to Presbyterian churches at the same preferential rate as Baptist churches. Your deposit will be used to help fund the loans, so your investment in Baptist Savings helps the Presbyterian Church in the same way it did before. This is very important to the Presbyterian Church as we will no longer be able to provide any loan funding.
Q: I would like to get some advice about my investment.
We recommend that if you have any concerns, you should seek professional advice. Presbyterian Savings is not a registered financial advisory service so we cannot provide investment advice. For a list of authorised financial advisors please visit www.fma.govt.nz.
Q: How do I tell you what I want to do?
You recently received a consent form by mail.
If you want us to transfer your deposit to Baptist Savings, you can either:
- select the I CONSENT box, sign and return the attached Consent Form to us as your authority to transfer your investment(s) to Baptist Savings; or
- call us to instruct us to transfer your investment(s) to Baptist Savings.
We will then transfer your investment(s) to Baptist Savings progressively from 31 October 2014.
If you do not want us to transfer your deposit to Baptist Savings, please either return the attached Consent Form to us as soon as possible requesting your deposit(s) be returned to you, or call us to instruct us to refund your deposit(s).
Q: What happens if I do not reply?
Please contact us before 24 October 2014 with your decision (to either consent to the transfer to Baptist Savings or to request your deposit(s) be refunded) or with any questions you have.
If you do not reply by this date, we will make further contact with you.
Q: What will happen to Presbyterian Savings?
Presbyterian Savings will still exist as Presbyterian Development. We have an equity of $6 million, which is invested and provides an interest return that we will use to continue the grants programme.
Q: Will I need to supply proof of my identity to Baptist Savings?
Not if you have already provided Presbyterian Savings with identification. We will pass this information onto Baptist Savings. You can see it and correct it in exactly the same way as you can now.