Mortgage holders are benefitting from low interest rates but for those trying to save, times are tough, the elderly in particular feeling the effects.
Wellington retiree, Alan Royal, says times have changed.
"A few years ago I was getting eight per cent on my term deposit, now I'm getting three and a half after quite a bit of haggle.”
In some cases, interest rates have dropped below four per cent and while home loan borrowers are making the most of it, others looking to leverage their savings for extra income are finding it alarming.
"Everybody chatters about it and they've got term deposits and they don't know what they are going to do," says Mr Royal.
Mac Welch from Grey Power says the elderly tend to put their savings into banks on term deposits.
"The term deposit rate has gone through the floor and it's making it hard on a lot of our members," he says.
KPMG Banking and Finance expert John Kensington says it puts pressure on the elderly.
"It puts a bit of pressure on their incomes and it has them thinking, 'do I need to invest in something different?'"
But many elderly don't want to take that risk and they don't trust finance companies or the sharemarket.
"They've seen their friends lose their entire life savings in some cases and who are now really doing it hard," says Mr Welch.
It's predicted the Reserve Bank may drop the official cash rate again in August and that could lead to interest rates falling even further.
Some are warning New Zealand could head the way of Japan and end up with interest rates as low as zero.
"The key thing for people is to make sure they are taking a bit of advice and they are matching their risk profile," says Mr Kensington.