ANZIS stops new investment in Bonus Bonds and moves to wind up scheme

Media announcement 26 August 2020

ANZ Investment Services (New Zealand) Ltd (ANZIS) today announced it will stop accepting new investment into the Bonus Bonds Scheme as low interest rates continue to reduce the prize pool.

“We’re always reviewing our investment products to ensure they best serve the interests of investors,” said Ben Kelleher, Managing Director Retail and Business Banking for ANZ.

“Low interest rates have reduced the investment returns of the scheme which affects the size of the prize pool. It has now become apparent those trends are likely to continue in the medium term. The Official Cash Rate, currently at a historically low 0.25%, may fall further in early 2021 as the global economy grapples with the impacts of Covid-19.

“The ANZIS Board decided it is no longer appropriate to accept new investment into Bonus Bonds with immediate effect, and intends to start winding up the scheme no later than the end of October. Winding up the scheme includes the process of returning funds to bondholders.

“Before the start of a wind up, the scheme will continue to operate, with two more prize draws expected.”

Bonus Bonds was launched by the New Zealand Government through the Post Office in 1970. Instead of earning interest or receiving investment gains or losses, each eligible Bonus Bond gives bondholders one entry into the monthly prize draw, where investment returns of the scheme are returned to investors as prizes. The top prize in the monthly draw is $1 million.

The September and October prize draws are intended to be held as scheduled and customers can continue to redeem their Bonus Bonds until winding up starts. However, ANZIS might move to an earlier wind up, for example, if there is a heavy demand for redemptions or it otherwise considers it is in the overall best interests of investors to do so.

“Investors have two choices. They can redeem their Bonus Bonds before the scheme starts to wind up, or stay in the scheme and be entitled to a share of the remaining reserves, after expenses, when the scheme is wound up,” Mr Kelleher said.

“Those who choose to stay during the wind-up phase will have their investments locked in during this process, which may take up to 12 months.

“The board believes current reserves are sufficient for bondholders to be confident they will receive back their initial investment. The reserves represent the surplus of the value of assets in the scheme over the claims of bondholders.”

With Covid-19 restrictions in place, Mr Kelleher urged bondholders to consider when was the appropriate time for members to redeem their bonds, and information can be found in the FAQs below.

It was not immediately necessary for a member to go to an ANZ branch Mr Kelleher said.



Please read the event disclosure statement. This contains important information about the decision of ANZ Investment Services (New Zealand) Limited, the Manager of the Bonus Bonds Scheme, to stop accepting new investments into the Bonus Bonds scheme from 25 August 2020. The event disclosure statement is available in hard copy on request by calling 0800 266 374.


Your questions answered

You may have a number of questions following this announcement so we’ve provided the following FAQs to help answer these.

  • Expand/collapse listFuture of Bonus Bonds
    • Expand/collapse listWhy has ANZIS made the decision to stop accepting new investments into Bonus Bonds and potentially wind up the scheme?
    • Expand/collapse listWho is ANZIS?
    • Expand/collapse listI love Bonus Bonds, how has ANZIS determined this is in my best interest?
    • Expand/collapse listWhat does this mean for Bonus Bonds as of today?
    • Expand/collapse listWhat happens to purchases that are in progress?
    • Expand/collapse listCan I still cash in my Bonus Bonds? And could this change in the future?
    • Expand/collapse listWhat do you mean by reserves?
    • Expand/collapse listIf I still have Bonus Bonds in the scheme if it is wound up how will I receive my money?
    • Expand/collapse listDoes this have to happen now with the country already facing the challenges of COVID-19?
    • Expand/collapse listIf a lot of customers redeem their bonds, what impact will it have on those who choose to leave their Bonus Bonds in?
    • Expand/collapse listHow long would it take to wind up the scheme?
    • Expand/collapse listWhat is the difference between closure and wind up?
    • Expand/collapse listWill any ANZ products be affected by the decision to close and the intention to wind up Bonus Bonds?
    • Expand/collapse listHow does Bonus Bonds compare to Lotto?
    • Expand/collapse listWhy wasn’t I contacted directly about no new sales being accepted?
    • Expand/collapse listShould I be concerned about the safety of my Bonus Bonds?
    • Expand/collapse listWhy doesn't the Bonus Bonds scheme reduce its management fee?
    • Expand/collapse listYou keep encouraging people to save, yet you’re considering doing away with a popular product – why?
    • Expand/collapse listI recently bought Bonus Bonds, why was I not informed sooner?
    • Expand/collapse listI have money in Bonus Bonds. What should I do now?
    • Expand/collapse listCan someone else manage the Bonus Bonds scheme?
    • Expand/collapse listHow are customers with incorrect contact details being informed of changes to the Scheme?
    • Expand/collapse listI currently have my payment method set to “reinvest”. If I win a prize in any future draw, will the prize be reinvested?
  • Expand/collapse listCashing in Bonus Bonds
    • Expand/collapse listCan I still cash in my Bonus Bonds? And could this change in the future?
    • Expand/collapse listWhat documents should I take to an ANZ branch if I am looking to redeem or update my details?
    • Expand/collapse listI have decided to cash in my Bonus Bonds, now what should I do with the funds?
    • Expand/collapse listWill there be a limit on how many Bonus Bonds I can redeem at any one time?
    • Expand/collapse listHow do I redeem my Bonus Bonds (ANZ Customer)?
    • Expand/collapse listHow do I redeem my Bonus Bonds (Non-ANZ Customer)?
    • Expand/collapse listI am concerned about going into a branch due to Covid-19, what should I do?
    • Expand/collapse listHow do I redeem my Bonds Bonds when there’s no local ANZ branch?
    • Expand/collapse listWhat if I find a Bonus Bonds certificate or bondholder card hidden away years from now – will I still be able to redeem them?
    • Expand/collapse listI bought Bonus Bonds for a minor and wish to redeem them. What do I do?
    • Expand/collapse listI bought Bonus Bonds as a gift and want to redeem them. What do I do?
    • Expand/collapse listI live overseas how do I redeem my Bonus Bonds?

Need to get in touch?

If you still have an enquiry and would like to hear from one of our team please get it touch in one of the following ways:

If you're an ANZ customer or are activated on MyBonusBonds:

Fill in our Contact Form and someone from the ANZ team will be in touch within 3 working days.

If you're not an ANZ customer:

Gather up any information you have around your bondholding and pop into any ANZ branch. Don’t forget to bring some identification with you - find out what you need