Minimum deposit to start earning interest is $2,000.
No set term — add money anytime and make a withdrawal by giving notice.
Keep adding money to your account whenever you like.
Only pay up to 28% tax on the interest income you earn.
How it works
- Set up your account with at least $2,000.
- Pick your notice period — either 32 or 90 days.
- Add money in internet banking whenever you like.
- The rate of return for Notice Saver can change at any time and without notice. This means the rate might go up or down during your investment.
- When you want to make a withdrawal, hit “give notice” in internet banking (or give us a call).
- The money will appear in your Nominated Account either 32 or 90 days later, depending on the notice period you chose.
- Set up and track your savings goals inside this account with Goal Tracker.
Withdrawals go into an account you nominate when you set up your Notice Saver — this can be any New Zealand 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 31.3 KB).
Notice Saver is a PIE account, which means 28% tax is the maximum tax rate that applies to the interest income you earn from it, and greater after-tax returns if you are on the 30% or 33% marginal tax rates. More about PIEs.
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.
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, e.g. 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 to make a withdrawal immediately
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:
- The amount withdrawn multiplied by the current rate of return divided by the number of days in the year. This is then multiplied by the Notice Period.
- Interest earned and accrued over the previous period equivalent to the Notice Period.
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 2.5% 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:
|Immediate withdrawal amount||$50,000|
|Return earned or accrued (for last 32 days) @ 2.5% p.a. (Assuming interest rate has not changed since investment opened).||109.59|
|Immediate Withdrawal Charge (Return earned for last 32 days).||109.59|
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 2.5% 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:
|Immediate withdrawal amount||$50,000|
|Return earned or accrued (for last 7 days) @ 2.5% p.a. (Assuming interest rate has not changed since investment opened).||23.97|
|Immediate Withdrawal Charge (Return earned for last 7 days).||23.97|
Your charge is capped so your initial contributions are not reduced. This example is before tax.
What it costs
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 52.0 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.