Get maximum financial flexibility and ready access to your funds with no fixed term and $1,000 minimum investment.
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.
Cash PIE earns 3.15% 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 3.43% 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 $1,000, 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 $1,000, unless you are withdrawing your whole investment.
Investing is straightforward
You simply need to read and understand the BNZ Cash PIE and BNZ Term PIE Terms and Conditions PDF 200KB, complete and sign the application form, and come and see us.
BNZ Cash PIE and BNZ Term PIE Annual Financial Statements
Other things it pays to know
Want to maximise savings that you don’t need right now?
BNZ Term PIE1 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*
3.15% p.a. (Minimum $1,000 balance applies.)
(Effective date 16/02/2015)
- BNZ Cash PIE and BNZ Term PIE are offered and managed by BNZ Investment Services Limited, a wholly owned subsidiary of Bank of New Zealand (BNZ). BNZ Cash PIE and BNZ Term PIE Terms and Conditions apply. An investment in BNZ Cash PIE or BNZ Term PIE does not represent a deposit or other liability of BNZ or any other member of the National Australia Bank Limited group, and is subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of BNZ, any other member of the National Australia Bank Limited group, or any other person guarantees (either partially or fully) the capital value or performance of the investment.
- 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 pay tax on PIE income at 28%.
- Assuming the investment in BNZ Cash PIE continues for the full year and the Cash PIE rate does not change.
To obtain a copy of the Trust Deed or other documents relating to the BNZ Cash PIE and BNZ Term PIE, you can contact us by:
(a) calling 0800 275 269;
(b) emailing firstname.lastname@example.org; or
(c) writing to Level 9, 80 Queen Street, Private Bag 92208, Auckland, 1142.
Our BNZ Cash PIE and BNZ Term PIE Terms and Conditions may also be obtained from any BNZ store.
BNZ Authorised Financial Advisers' disclosure statements are available on request and free of charge.