The tax-smart, fixed-term investment that works like a term deposit. You get the certainty of a fixed rate, with the added benefit of potentially paying less tax.
- Pick a term that suits you
- Choose when your returns are paid
- No entry, exit or management fees
How it works
BNZ Term PIE^ is a managed investment scheme that works in a similar way to a term deposit. It gives you a fixed rate of return for investments of $2,000 or more over a fixed period of time and you can choose how you want your returns paid to you.
An advantage of investing with BNZ Term PIE is that you may get a tax benefit from holding your savings in a portfolio investment entity (PIE).
Returns are maximised because tax is minimised
BNZ Term PIE has special tax rules. Under current legislation, your share of BNZ Term PIE taxable income is taxed at your prescribed investor rate (PIR) up to a maximum rate of 28% for most investors. So if you currently pay income tax at the top rates of 30% or 33% you’ll pay less tax on your PIE returns. If you’ve just returned to the workforce, your PIR might be lower, so you could pay even less than 28% on your investment.
Why choose BNZ Term PIE?
Get better returns
Term PIE’s potential tax advantages mean that your post-tax returns could be higher than those from a standard term deposit.
Pick a term that suits you
You decide how long your investment lasts, from 30 days to five years.^
Choose when returns are paid
Depending on the term of your deposit, you can choose to have your interest paid monthly, quarterly, six monthly, annually, or at maturity.
Is Term PIE right for you?
Term PIE could suit you if:
- you pay income tax at the top rates of 30% or 33%
- you’ve returned to the workforce after an absence of at least two years. That’s because your PIR is based on your taxable income in either of the last two income years
- you’ve had an increase in salary and, as a result, you’re now paying a higher rate of income tax
- you’re a trust with a trustee tax rate of 33%, or a trust beneficiary on a 30% or 33% income tax rate.
Got a question?
You can ask us questions about Term PIE by clicking on the ‘Enquire online’ button at the top of the page.
Ready to invest?
If you’re ready to invest, you simply need to read and understand the BNZ Term PIE Terms and Conditions PDF 162KB, complete and sign the application form in the Terms and Conditions, and bring it with you to one of our branches. You can also call us on 0800 275 269.