We realise that sometimes you might need to access some or all of your money from a Term Deposit or PIE Term Deposit before the term is up. An early termination charge may be charged and you'll be paid a lower interest rate on the money you take out (excludes Access Term Deposit).
If you need some or all of your money before your term is up, you’ll have to make a formal application to break the deposit early because you’re breaking the contract you made with us.
There are no account management or transaction fees, however early termination charges apply if you break your standard or PIE Term Deposit early.
|
Date of investment |
1 January 2019 |
|
Initial term |
One year (365 days) |
|
Initial deposit |
$10,000 |
|
Date of break |
1 June 2019 |
|
Amount requested to break (full break) |
$10,000 |
|
Term completed |
Five months (151 days) |
The charge equals lesser of calculation A and B = $72.40 charge (calculation B).
Note: The minimum rate is 0%. The below calculation is before tax.
|
Calculation A |
Calculation B |
|
|---|---|---|
|
Interest rate for a five month Term Deposit |
As at 1 January 2019 – 4.1% p.a. (interest paid at maturity) |
As at 1 June 2019 – 3.75% p.a. (interest paid at maturity) |
|
Rate of return less 2% |
2.1% p.a. |
1.75% p.a. |
|
Total interest earned if invested in a 5 month Term Deposit when initially invested (before tax) |
$86.88 |
$72.40 |
|
Calculation A |
Calculation B |
|
|---|---|---|
|
Interest rate for a five month Term Deposit |
As at 1 January 2019 – 4.1% p.a. (interest paid at maturity) |
As at 1 June 2019 – 3.75% p.a. (interest paid at maturity) |
|
Rate of return less 2% |
2.1% p.a. |
1.75% p.a. |
|
Total interest earned if invested in a 5 month Term Deposit when initially invested (before tax) |
$86.88 |
$72.40 |
If we agree to you making a withdrawal, it must be of at least $500 and you must maintain the minimum balance of $10,000 or you can ask to withdraw all of your balance by redeeming your unit entirely.
|
Date of investment |
1 January 2019 |
|
Initial term |
One year (365 days) |
|
Initial deposit |
$10,000 |
|
Date of break |
1 June 2019 |
|
Amount requested to break (full break) |
$10,000 |
|
Term completed |
Five months (151 days) |
Note: The minimum rate is 0%. The below calculation is before tax.
|
Initial rate of return (‘actual rate’) |
4.30% p.a. |
Total return earned for 5 months (before tax) |
$177.89 |
|
Less break rate of return reduction |
2.00% p.a. |
Early termination charge (before tax) |
$82.74 |
|
Effective rate of return on withdrawn amount |
2.30% p.a. |
Return received after early termination charge (before tax) |
$95.15 |
|
Initial rate of return (‘actual rate’) |
4.30% p.a. |
Total return earned for 5 months (before tax) |
$177.89 |
|
Less break rate of return reduction |
2.00% p.a. |
Early termination charge (before tax) |
$82.74 |
|
Effective rate of return on withdrawn amount |
2.30% p.a. |
Return received after early termination charge (before tax) |
$95.15 |
Term Deposit rates change depending on the amount you’ve invested. If you break some of your investment, it might drop the remaining deposit to a lower tier — which means you’ll earn a lower interest rate for the rest of your deposit.
If you have a Term Deposit of two years or more, you can access a portion (up to 20%) of your initial investment at any time without reducing the interest you will receive on that portion.
We'll need to verify your identity to ensure the safety of your funds first. Your Term Deposit can only be broken to a New Zealand Bank account.
Standard terms and conditions
Units in the Kiwibank PIE Term Deposit Fund are distributed by Kiwibank and are issued by Kiwibank Investment Management Limited. See all investments terms and conditions or pick up copies from your nearest Kiwibank.