Frequently Asked Questions

Still like to know more about Southern Cross Building Society? 

For more information, click here to access Southern Cross Building Society's Investment Statement.

If you can’t find the answer you’re looking for, just drop us a line. Go to our Contact Us page, or call us on 
0800 657 935 to talk to a friendly member of our team.

 

  • What is a Building Society?

    A building society is financial institution that offers savings accounts and mortgages as its main business. Building societies may be “mutual” institutions, which are owned by their members rather than shareholders. Southern Cross Building Society is a shareholder-owned building society. Building societies in New Zealand offer a similar range of services to that of banks.

  • What business is Southern Cross Building Society in?

    The Society borrows from the public by taking deposits and in turn invests only in what it considers to be good quality assets. The Society's investment activities are restricted under a trust deed in terms of which the Society may only invest in prescribed assets. These prescribed assets comprise investments in financial institutions (such as bank deposits) and in good quality properties on a first mortgage only basis. The Society maintains conservative lending policies in respect of its property-lending activities.

  • Why invest in Southern Cross Building Society?

    • The Society is governed by separate regulation, namely the Building Societies Act 1965. It is not a finance company.
    • The Society is a New Zealand building society i.e. it is substantially owned by, takes deposits from and lends to New Zealanders.
    • The Society is the third largest building society in New Zealand with total assets as at 31 December 2009 of $403 million, total liabilities of $350 million and equity of approximately $53 million.
    • The Society has a "BB" (with stable outlook) long term credit rating from Standard & Poor's and was the first building society in New Zealand to be awarded a credit rating from Standard & Poor's.
    • The Society offers competitive deposit rates relative to other building societies and banks.
    • The Society is a community focused organisation - supporting your community directly through its business of lending but also through its sponsorship programme carried out by the Southern Cross Building Society Charitable Trust.
    • The Society is a member of the Financial Services Federation and the New Zealand Savings Institutions Association.

  • How secure is an investment in the Society?

    • The Society has a strong asset base with equity of almost $53 million as at 31 December 2009 - giving it one of the highest "capital adequacy" ratios of all non bank lenders
    • As at 31 December 2009, the Society had liquid assets of almost $120 million and a "liquidity ratio" (per its trust deed defined as qualifying liquid assets as a percentage of total tangible assets minus equity) of approximately 33% - compared to a minimum liquidity ratio requirement of 15% per its Trust Deed.
    • The Society's deposits are governed by an independent trustee, Trustees Executors Limited, established over 100 years ago and a widely-used and respected trustee company within the building society sector.
    • The Society is independently audited by Deloitte in addition to the Society having its own internal audit manager.

  • Does Southern Cross Building Society have a credit rating?

    Yes, in August 2009 the Society received a "BB" (with stable outlook) long term credit rating from Standard & Poor's.

  • Is Southern Cross Building Society covered by the New Zealand Deposit Guarantee Scheme?

    On 12 October 2008, the New Zealand Government announced a deposit guarantee scheme (The "Scheme") that includes banks and non-bank deposit takers (including Southern Cross Building Society).

    The scheme originally expired in October 2010. However, it has been extended to qualifying companies until 31st December 2011.

    The Society has been approved under the extended New Zealand deposit guarantee scheme. (The "Extended Scheme")

    Southern Cross Building Society has a guarantee under a Crown retail deposit guarantee scheme, being a guarantee that expires on 31 December 2011. A copy of the Society's announcement may be viewed here.

    The Extended Scheme has the following key features:

    • Only deposits held by NZ citizens and NZ tax residents will be covered.
    • Maximum guarantee amount of $250,000.00 per depositor (including joint accounts)
    • The Society has the option under the Extended Scheme to offer both a guaranteed and a non-guaranteed (known as “Excluded Security”) deposit product.

    This means the Society’s deposits that have maturities extending beyond 12 October 2010 but maturing on or before 31 December 2011 are now guaranteed by the Crown.

    The Society now offers a range of both Guaranteed and Non-Guaranteed savings and investment products.

    The Guaranteed products will have the benefit of the Crown Guarantee which comes at a cost. That cost is reflected in a lower rate of return for our Guaranteed products.

    The Non-Guaranteed products do not include this cost and therefore the Society can provide those products at a higher rate of return. The difference in interest rates (return) between both Guaranteed and Non-Guaranteed savings products, will be implemented prior to the expiry of the existing crown guarantee, which occurs on 12 October 2010. Term investments have the pricing differential built in immediately, as they may expire after the 12 October 2010, depending on the investment term selected.

    The Non-Guaranteed products offered by Southern Cross Building Society are not covered by the guarantee given under the Crown retail deposit guarantee scheme.

    Further information about the deposit guarantee scheme is available, free of charge, and at all reasonable times, on the internet site maintained by, or on behalf of, the Treasury, which is currently www.treasury.govt.nz.

    To view the New Crown Deed of Guarantee click here.

  • Why is capital adequacy important?

    The term "capital adequacy" represents the measure of permanent capital in the Society relative to the Society's total assets.   A high capital adequacy ratio reflects a large capital "buffer" in the business which ranks behind depositors.

    The Reserve Bank of New Zealand is in the process of introducing minimum levels of capital required for all non-bank deposit-taking institutions (such as the Society).  The Society's capital adequacy position comfortably exceeds the minimum requirement of 8% indicated by the Reserve Bank.  As at 31 December 2009, the capital adequacy ratio of the Society was 12.2%.

  • Why is Southern Cross Building Society able to offer higher rates of interest than the banks?

    The Society keeps its business simple and maintains tight control over its costs - thereby enabling it to offer competitive rates to its depositors.

  • Does Southern Cross Building Society lend money unsecured?

    No, all the Society's loans are predominantly secured by first mortgages on New Zealand properties which require a minimum level of borrower's equity.  The Society's maximum loan to value ratio for any loan is 80%.  This means we do not lend 100%, nor do we lend money without property as the security.

  • Are there any loans made outside of New Zealand?

    No, all our loans may only be made in New Zealand.

  • Can I make lump sum repayments on my Society Home Loan without incurring fees?

    Yes, you can make lump sum repayments at any time provided.   This applies to owner occupied home loans for the value of $100,000 or more. The minimum lump sum repayment is $1,000. Lump sum payments attract no penalties unless the mortgage is discharged or reduced to a balance of less than $20,000, in which case a $150 fee will apply and  interest adjustment calculations will apply in accordance with the Credit Contracts and Consumer Finance Act 2003.

  • Is Southern Cross Building Society associated with Southern Cross Healthcare?

    No. Although we share a similar name, the Society and Southern Cross Healthcare have absolutely no business association.

  • What are your trading hours?

    Our branches are open Monday to Friday from 8.30 am to 5.00 pm (except Tuesdays when we are open at 9.00 am). Alternatively you can email your local branch, or submit a "contact us" request.

  • How can I open an account?

    You can open your account online, by post or at one of our seven branches or over 40 agencies.

    To apply online, please complete the New Account Application form and we will contact you to obtain your certified copy of current identification and opening deposit. For further information as to the types of identification that is required please refer to the question in relation to identification or call the Society on 0800 657 935.

    To apply by post, phone us and we'll send you the New Account Application form and all the information you will need to open an account. Complete the form and send it back to us with your cheque and certified copy of current identification.

    To apply at a Branch or at an Agency, please bring your appropriate current identification and we can open the account for you.

  • How can I make deposits and withdrawals?

    You can make deposits and withdrawals in person at any of the Society's Branches or Agencies. No withdrawals on a Current Account Saver or Maxi-Month Account are permitted without appropriate identification. You can also direct credit funds into your Society account from your trading bank account. Our Telephone Banking and Internet Banking services provide you with the facility to transfer funds to any nominated financial institution.

  • Why do I need to provide identification, and what type is required?

    In order to comply with the Financial Transactions Reporting Act 1996 and the Anti Money Laundering and Counter Financing Terrorism Act 2009, the Society requires identification from all customers prior to a new account being opened.

    Two forms of identifications are required. The primary Identification means a photo ID, generally the additional acceptable form is a passport and/or a NZ driver's license. The secondary form of acceptable identification is either a credit card, ATM (with the name and the signature of the owner), and other documents from a reputable and identifiable source. 

    If The Society cannot view the original document(s), such as in the case of opening an account via the post, we require certified copies of all identifications. A Justice of the Peace, lawyer, banker may certify that the documents are a true copy of the original".

  • I have accounts that need more than one person to operate - can I still access these accounts through Internet Banking?

    No. To be able to transact on an account in Internet Banking, you must have an account that requires only one person to operate it.

    If you need joint or multiple people to operate your account, you will not be able to access the account via internet banking.

  • Can I ask for an account balance over the phone?

    If you would like to be able to receive your account balance or other information over the phone, you will need to set up a password on your account. Please contact one of our branches for more information on how to do this.

  • What happens if my passbook is lost or stolen?

    You must contact your branch or Agency to inform us so that we can register your passbook as lost or stolen. A warning is placed on your account prohibiting any withdrawals to be made until the lost passbook form is completed and a duplicate passbook is issued. Contact your local Branch on 0800 657 935.

  • How do I change my address and contact details for my account?

    We will need notification of the change of address or any contact details to be completed on the signed copy of the Change Request form and sent or faxed to your branch. The Society will make the requested changes in our records and send you confirmation if requested. To download a copy of the Change Request form click here.

  • Can I set up a new automatic payment to commence today?

    No. Automatic payments can only be set-up to commence on the next working day.

  • I want to change or cancel an automatic payment. What is the latest time that I can do it by?

    Automatic payments only get processed on working days. If the next payment date falls due on a working day, you can change or cancel the payment instruction any time up to 6.30 pm. If it is after 6.30 pm, the payment will be processed unchanged i.e. your changes will not take effect until the next payment date. Please note that you cannot change the date of the automatic payment to be today, it will need to be tomorrow.

    If you have any other questions please contact us on 0800 657 935 (8.30 am to 5.00 pm Monday to Friday) or submit a contact us request.

  • What happens if an automatic payment falls due on a weekend or public holiday?

    Automatic payments only get processed on working days. If a payment falls on a non-working day, the payment will be made on the next working day.

  • I'm expecting money to be deposited in my account today – will my planned payment that is supposed to go out of my account today go through?

    It is a good idea to plan future dated transactions for the day after you are expecting funds to be deposited into your account. Deposits into your account from other banks are processed after midnight each working day, and will therefore not be in your account in time to fund a planned payment due today.

  • What happens if I don't have enough money in my account on a planned payment date?

    If there are insufficient available funds on the planned payment date to cover your payment, your payment will not be processed.

Internet Banking FAQs

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