You’ve probably noticed our investments section looks a little different. No need to worry, we've recently revamped this section.
Do you find yourself dipping into your savings? Notice Saver can take temptation out of the equation. A flexible savings account that earns good interest, but instead of instant access to your money, you have to give notice to make a withdrawal.
No account management or transaction fees.
Add money whenever you like and leave it in your account for as long as you like.
Make a withdrawal by giving either 32 or 90 days' notice.
Interest rates are subject to change.
You'll need a minimum balance of $2,000 to set up an account and earn interest.
There’s no set investment period – you just need to give us the agreed amount of notice (32 or 90 days) when you want to withdraw your money.
Choose to have your interest paid back into your Notice Saver (compounded) or paid monthly to your nominated account.
When you open an account, you'll choose either a 32 or 90 days' notice option. This is how long your funds take to be transferred after you've given notice. It works just like a normal transfer between your accounts except it takes 32 or 90 days.
Notice Saver is a fund within a Portfolio Investment Entity (PIE), which could have tax advantages for you. Usually you’d pay your regular income tax on interest earned on savings accounts, which could be up to 33%. With a PIE, the maximum tax you’ll pay on the interest income you earn is 28% – meaning you could keep more of your return in your pocket.
To give notice, you can log in to internet banking or our mobile app, and set up a transfer. You can choose any available amount to transfer and you can have multiple transfers on the go. You'll also earn the Notice Saver interest rate right until your money leaves the account. Alternatively, you can also give us a call.
Once you’ve given notice, you’ll need to wait either 32 or 90 days, depending on which option you chose when you opened your account.
When you make a withdrawal you can take out all of your money, or just some of it. When your funds are transferred, they go into a specified account that you set up at the time your Notice Saver is opened. This can be any New Zealand bank account. If you want to change your nominated account and to help protect your funds, please complete a Notice Saver account change advice (PDF 31.3 KB).
When you request an immediate withdrawal of part or all of your money from Notice Saver without giving the required notice, you'll be charged an immediate withdrawal charge. The amount of the charge varies depending on the amount being withdrawn, the current rate of return for your Notice Saver and the length of the required notice period.
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.