What a Notice Saver account offers
A flexible savings account - add money anytime and make a withdrawl by giving notice
No account management or transaction fees
Only pay up to 28% tax on the interest income you earn
Set up and track your savings goals with Goal Tracker.
How it works
- $2,000 minimum balance to earn interest.
- Pick your notice period — either 32 or 90 days.
- When setting up your account, you’ll be asked to choose a nominated account - this can be any New Zealand bank account. This account is where you can choose to have your interest and withdrawals paid to.
- When you want to make a withdrawal you'll need to give us notice. You can either do this through internet banking by selecting "Give 32 days’ notice" or "Give 90 days’ notice" within your account, making a transfer on the app, or giving us a call. The amount you'd like to withdraw will transfer to your nominated account after 32 or 90 days.
- The rate of return is variable, which means it can change at anytime and without notice. The rate might go up or down during your investment.
- A maximum of $5 million can be invested.
To change your nominated account you’ll need to complete a Notice Saver Nominated Account change form (PDF 31.3 KB).
Notice Saver is a fund within a portfolio investment entity (PIE), which means 28% is the maximum tax rate that applies to the interest income you earn from it. If your tax rate is 30% or 33% you could be getting greater after-tax returns.
Choose to have your interest:
- paid back into your Notice Saver (compounded), or
- paid out to your Nominated Account each month.
If your balance drops below $2,000, you won’t earn any interest until it’s back up above $2,000.
What if you need to withdraw your money early?
If you apply to make an immediate withdrawal without providing the required amount of notice we may refuse your request at our discretion. You can apply by sending us a secure message through internet banking or our mobile app, or give us a call. If we approve your request you’ll need to pay an Immediate Withdrawal Charge.
If your application is approved the Immediate Withdrawal Charge applies (which is a reduction against the interest earned).
This is based on the following calculations:
Immediate withdrawal charge = funds to be withdrawn x (Notice Saver Interest rate ÷ 365) x Notice Period days (32 or 90).
Example 1: You’ve invested $50,000 in a Notice Saver with a 32-day notice period at 2.25% p.a. If you have had the money in the account for 50 Days, your Immediate Withdrawal Charge would be: interest earned on $50,000 over the last 32 days x 2.25% p.a.= $98.63 (before tax).
Example 2: You’ve invested $50,000 in a Notice Saver with a 32-day notice period at 2.25% per annum, but your money has only been in the account for seven days. Your Immediate Withdrawal Charge would be: interest earned on $50,000 over the last 7 days @ 2.25% p.a. = $21.58 (before tax).
The charges are capped, so your initial contributions won’t be reduced.
Kiwibank Notice Saver rates of return are not fixed. Units in Kiwibank Notice Saver are issued by Kiwibank Investment Management Limited and are distributed by Kiwibank Limited. Limited and are distributed by Kiwibank Limited. Download the Terms and Conditions for Kiwibank Notice Saver (PDF 52.0 KB), or pick up a copy from your local Kiwibank.
Download the latest Kiwibank PIE Unit Trust Annual Report (PDF 4.2 MB).
This communication contains general information only and not investment or tax advice, and as such you should not rely on it as the sole basis for any financial decision. Potential investors should seek professional advice as to whether an investment is right for them, including the taxation implications of investing in an investment.