Cash PIE

The tax-smart investment that's similar to an on-call account.

  • Individuals pay no more than 28% tax2 on PIE income
  • Competitive rate of return
  • Minimum investment of $1,000 and no fixed term
  • Ready access to your money gives you maximum financial flexibility

More detail

Returns are maximised because tax is minimised

Cash PIE1 is a Portfolio Investment Entity (PIE), which has special tax rules. Under current legislation your Cash PIE income is taxed at your notified Prescribed Investor Rate (PIR) up to a maximum rate of 28% for most investors2. So, if you're an individual currently taxed at 30% or 33%, you'll pay less tax on your PIE income.

For example:

* Cash PIE earns 3.66% p.a. If your current tax rate is 33%, and your PIR is 28%, your actual PIE return would be comparable to what you'd earn from a 4.00% p.a. one-year term deposit3 with interest paid at maturity, after tax is taken into consideration.

Not only that, if you are on a 10.5% tax rate (as taxable income of less than $14,000) and your combined PIE and taxable income was below $48,000 for either of the last two years, your PIE income is taxed at 10.5%. This means you can earn PIE income (subject to this threshold) and still only be taxed at 10.5%.

If you are on a 17.5% tax rate (as taxable income of between $14,001 and $48,000) and your combined PIE and taxable income was below $70,000, then your PIE income is taxed at 17.5%. This means that you can earn PIE income (subject to this threshold) and still be taxed at 17.5%.

An investment in BNZ on-call deposits

Cash PIE1 is a unit trust. You buy units in the trust and the Cash PIE invests this solely in on-call deposits with BNZ. The potential return on these units can change without notice as the market interest rates for bank deposits rise and fall.

No fixed term and ready access to your money

You can invest as little as $1000, and with no fixed term. At any time, you can add to your investment with amounts of $250 or more and withdraw amounts of at least $500. You have to keep a minimum balance of $1000, unless you are withdrawing your whole investment. Please see your Investment Statement for details.

BNZ Cash PIE and BNZ Term PIE Prospectus

On 23 September 2011, BNZ Investment Services Limited registered a prospectus for the offer of units in the BNZ Cash PIE and BNZ Term PIE dated 23 September 2011. On 8 December 2011, BNZ Investment Services Limited registered a Memorandum of Amendments to the registered prospectus. Download a copy of the Memorandum of Amendments and the prospectus (as amended) PDF 3.3MB.

Other things it pays to know

Learn more about PIEs and PIRs

Want to maximise savings that you don't need right now?

BNZ Term PIE5 is another investment that offers tax advantages. You can lock in a competitive fixed rate of return for a set term.

Cash PIE Rate
Rate on Cash PIE's Deposit with BNZ^ (effective date 09/11/2011)
3.66% p.a. (Minimum $1000 balance applies.)

Small print

  1. BNZ Cash PIE (Fund) is offered and managed by BNZ Investment Services Limited - a wholly owned subsidiary of Bank of New Zealand (BNZ). A current Investment Statement can be obtained free of charge from any BNZ store. BNZ is a promoter of the Fund. An investment in the Fund does not represent a deposit or other liability of the BNZ, National Australia Bank Limited or any member of the BNZ group of companies. An investment in the Fund is subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value of investments and the income from them may go down as well as up. Neither BNZ, National Australia Bank Limited nor any other person  guarantees (either partially or fully) the capital value or performance of the investment.
  2. PIE funds provide some individual and trustee investors with a benefit over holding assets (or investments) directly. This is because PIE funds will pay tax on behalf of such investors at their notified Prescribed Investor Rate (PIR) with the highest or default PIR capped at 28%. Provided the correct PIR has been notified, no further tax will be payable by the investor. This means that individual investors with a higher marginal tax rate than 28% and a PIR of 28% will save tax. Certain trusts with a 33% tax rate may elect a PIR of 17.5% or 28% (certain testamentary trusts can elect a PIR of 10.5%) and therefore may save tax. Non-individual investors with a 0% PIR and trusts which have notified a PIR of less than 28% will be responsible for paying tax on the PIE income attributed to them. Companies will pay tax on PIE income at 30% until the beginning of their 2012 income year.
  3. Assuming the investment in the Fund continues for the full year and the Cash PIE rate does not change.
  4. BNZ Authorised Financial Advisers' disclosure statements are available on request and free of charge.
  5. BNZ Term PIE (Fund) is offered and managed by BNZ Investment Services Limited - a wholly owned subsidiary of Bank of New Zealand (BNZ). Current Investment Statement can be obtained free of charge from any BNZ store. BNZ is a promoter of the Fund. An investment in the Fund does not represent a deposit or other liability of the BNZ, National Australia Bank Limited or any member of the BNZ group of companies. An investment in the Fund is subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value of investments and the income from them may go down as well as up. Neither BNZ, National Australia Bank Limited nor any other person guarantees (either partially or fully) the capital value or performance of the investment.

Our Investment Statement for Cash PIE PDF 411KB and Disclosure Statement may be obtained from any BNZ store.

BNZ Authorised Financial Advisers' disclosure statements are available on request and free of charge.