Back to Investments

Making an early withdrawal from your term investment

You can ask to withdraw all or part of your term deposit or term PIE prior to the maturity date by either telling us 31 days before you want to withdraw or if you are experiencing hardship (as reasonably determined by us). 

If an early withdrawal request is made within the first seven days of the term deposit being opened, then neither 31 days’ notice nor exceptional circumstance approval are required.

You can ask us by sending a secure message in Internet Banking, calling 0800 275 269 or +64 4 931 8209 from overseas, or visiting a branch.

If we agree to an early withdrawal for either of the above reasons, fees and/or changes may apply.

Fees and charges

Term deposits

You may receive a reduction in the interest paid to you. The interest rate that will be applied to the amount you withdraw early will be the advertised rate at the time the term deposit was opened, for the length of time the money was invested, less an interest rate adjustment of 2%^.

For example, if a term deposit was originally one year, but was broken after six months, the interest rate that would be applied would be the six-month rate at the time the term deposit was opened, less 2%. If this results in a break rate (reduced interest rate) that is less than zero, we’ll deem it to be equal to zero.

If interest has been paid to you during the term, and you withdraw all or part of a term deposit before the maturity date, we can recover all or some of that interest by deducting it from the amount you withdraw.

We’ll let you know the amount of the interest reduction at the time you ask to withdraw all or part of your term deposit. The interest reduction amount will never exceed the total amount of interest we’ve paid to you for that term deposit.

Term PIEs

A break fee may apply. You will be advised of the approximate amount of the break fee (if any) when you ask about making an early withdrawal request from your Term PIE.

Calculation of break fee

Break fee = dollar amount requested to be withdrawn x (days invested/365) x (actual investment rate – break rate)

  • Investment rate: The rate of return agreed on the units at the beginning of your term.
  • Break rate: The standard rate that would have applied in respect of the units for the shorter term of your Account until the date of the early withdrawal (as though that rate was being determined at the time of the original investment), minus an interest rate adjustment of 2%^.

If the break fee is calculated to be negative or zero, no break fee will be charged.

Term PIE example

You invested $10,000 in the BNZ Term PIE for 1 year at an agreed rate of return of 4.5% p.a.

After receiving and approving a request for early repayment, subject to waiting the required 31 days, we process a full withdrawal of your $10,000 investment on day 220 of the investment term.

The standard rate of return that would have applied for a 220 day term at the time you first made the investment was 3.3% p.a.

The break fee will be calculated like this:

  • Dollar amount requested to be withdrawn = $10,000
  • Days invested = 220
  • Actual Investment rate = 4.5% p.a.
  • Rate of return for 220 days = 3.3% p.a.
  • Break rate = 3.3% p.a. - 2.0% p.a.³ = 1.3% p.a.

Term pie example equation

 Term PIE break fee = $192.88