South Canterbury Finance’s 35,000 investors will be reimbursed next week, nearly two months after the finance company collapsed.

The Timaru-based firm was protected under the Government’s Retail Deposit Guarantee Scheme, meaning all debenture and deposit holders are entitled to principal and net interest up to August 30.

Payments will be made on Wednesday, and will include interest accrued since the end of August.

Financial advisor Murray Weatherston says investors will take plenty of time before redepositing their money elsewhere.

“These people have been fixed interest investors, they want income, not volatility or growth on capital.

"There aren’t many finance companies left around, and most of them would probably be too nervous to go in there even if there was a good rate offering, and they know the Government guarantee only lasts for another year.

"I think that money will go into banks, and so you may see some banks lowering interest rates.”

The Government is settling around $1.6b of investments as part of the South Canterbury Finance receivership.