Withdrawals go into an account you nominate when you set up your Notice Saver — this can be any NZ bank account. We call this your Nominated Account. To change your Nominated Account, you’ll need to complete a Notice saver account change advice (PDF 32.1 kB)
Notice Saver is a PIE account, which means you’ll only pay up to 28% tax on the interest you earn (usually you pay your regular income tax rate). More about PIEs
Choose to have your interest:
If your balance drops below $2,000, you won’t earn any interest until it’s back up above $2,000.
You can’t have more than $5 million invested in Notice Saver at any time and you have to be over 18 to open a Notice Saver. If you’re investing as a non-personal entity, eg. a business, then you can only have a maximum of $1m invested in Notice Saver.
You must give notice before making a withdrawal, or you’ll incur an Immediate Withdrawal Charge. You can find out more about the Immediate Withdrawal Charge below.
If you need your money urgently, you can apply to skip your notice period — but you’ll incur an Immediate Withdrawal Charge. This is calculated on a number of factors including how much you’re withdrawing, how much notice you give us, and other variables as outlined below.
The Immediate Withdrawal Charge is based on the lesser of:
Here are some examples to illustrate how the Immediate Withdrawal Charge is calculated.
Example 1: You have invested in Notice Saver with a 32 day notice period, at 4% per annum. You have invested for longer than your applicable notice period. In these circumstances, an immediate withdrawal of $50,000 would incur the following Immediate Withdrawal Charge:
You will not forfeit any returns that have been earned or accrued more than 32 days prior. This example is before tax.
Example 2: You have invested in a Notice Saver with a 32 day notice period, at 4% per annum. You have invested for less than your applicable notice period – for example, for 7 days. An immediate withdrawal of $50,000 would incur the following Immediate Withdrawal Charge:
Your charge is capped so your initial contributions are not reduced. This example is before tax.
There are no account management or transaction fees.
Kiwibank Notice Saver rates of return are not fixed. Units in Kiwibank Notice Saver are distributed by Kiwibank and are issued by Kiwibank Investment Management Limited. Download the Terms and Conditions for Kiwibank Notice Saver (PDF 46.0 kB), or pick up a copy from your local Kiwibank.
Download Kiwibank Limited’s Disclosure Statement (PDF 145.1 kB) or pick up a copy from your local Kiwibank.
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.