- A flexible savings account - add money whenever you like.
- No account management or transaction fees.
- Earn good interest.
- No set investment period - you just need to give us the agreed amount of notice when you want to withdraw the money, either 32 days or 90 days.
- When you open an account you set your notice period.
- Only pay up to 28% tax on the interest income you earn - usually you'd pay your regular income tax on interest earned on savings accounts, which could be up to 33%.
- You can open and manage your Notice Saver account online, using internet banking or our mobile app.
- You need a minimum of $2,000 to set up a Notice Saver account. A maximum of $5 million can be invested.
- Set up and track your goals with a Goal Tracker.
How to make a withdrawal
You can give notice by hitting 'give notice' in internet banking or on our mobile app, or by giving us a call.
When you set up your Notice Saver account, you'll choose either a 32-day or 90-day notice period. This is how long you'll have to wait each time you want to withdraw money, once you've put that money on notice. The interest rate you receive will depend on which option you go for.
When you make a withdrawal you can take out all of your money, or just some of your money.
Withdrawals go into an account that 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).
Difference between a Notice Saver and a Term Deposit
- You can leave your money in a Notice Saver account for as long as you like, you just have to give us either 32 or 90 days' notice - depending on what notice period you choose when you set up the account. With a Term Deposit you lock your money away for a set amount of time.
- Notice Saver has a variable interest rate, meaning the rate can go up or down, whereas a Term Deposit has a fixed interest rate for a fixed period.
- Notice Saver is a savings account, so you can add money whenever you like - you can't keep adding money to a Term Deposit.
Notice Saver is a fund within a portfolio investment entity (PIE) account, which means 28% is the maximum tax rate that applies to the interest income you earn from it. Inland Revenue has a handy guide to working out your Prescribed Investor Rate.
- You can 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.