How it works

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. To break your Term Deposit or PIE Term Deposit, you’ll need to complete a Term Deposit or PIE Term Deposit break or change form (PDF 53.7 kB).

If your Term Deposit has been invested for more than two years, you can withdraw up to 20% of your initial deposit anytime for free.

  • Breaking a standard Term Deposit in the first 30 days

    You won’t get any interest if you need to break a Term Deposit in the first 30 days after you set it up.

  • Breaking a standard Term Deposit after the first 30 days

    You’ll get a lower rate of interest on the amount you withdraw as you’ll incur an Early Termination Charge. The Early Termination Charge is a reduction in the interest payable to you on the amount withdrawn and will be calculated using the following formula:

    • the interest rate that applied on the original deposit date for the term actually completed, less 2%, or
    • the current interest rate for the term the deposit has been invested, less 2%.

    Here is an example of how the Early Termination Charge is calculated:

    Example Term Deposit
    Date of Term Deposit investment 1 January 2014
    Initial term 1 Year (365 days)
    Initial deposit $10,000
    Date of break 1 June 2014
    Amount requested to break (full break) $10,000
    Term completed 5 months (151 days)
    Early Termination Charge calculation Calculation A Calculation B
    Interest rate for a 5 month Term Deposit Calculation A: As at 1 January 2014 – 4.1% p.a. (interest paid at maturity) Calculation B: As at 1 June 2014 – 3.75% p.a. (interest paid at maturity)
    Interest rate less 2% Calculation A: 2.1% p.a. Calculation B: 1.75% p.a.
    Total interest earned if invested in a 5 month Term Deposit when initially invested (before tax) Calculation A: $86.88 Calculation B: $72.40
    Charge equals lesser of calculation A and B $72.40 Charge (Calculation B)

    Note: the minimum rate is 0%. The above calculation is before tax.

  • Breaking a PIE Term Deposit in the first 30 days

    You cannot break your PIE Term Deposit within the first 30 days.

  • Breaking a PIE Term Deposit after the first 30 days

    You’ll get a lower rate of interest on the amount you withdraw as you’ll incur an Early Termination Charge. The Early Termination Charge is a reduction in the interest payable to you on the amount withdrawn and will be calculated using the following formula:

    Early Termination Charge = amount to be withdrawn × (days investment/365) × (‘actual rate’ less 2%), where the actual rate is the rate of return we agreed when you invested.

    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.

    Here is an example of how the Early Termination Charge is calculated.

    Example Term Deposit
    Date of PIE Term Deposit Fund investment 1 January 2014
    Initial term 1 Year (365 days)
    Initial deposit $10,000
    Date of break 1 June 2014
    Amount requested to break (full break) $10,000
    Term completed 5 months (151 days)
    Early Termination Charge calculation
    Initial interest rate (‘actual rate’) 4.30% p.a. Total interest earned for 5 months (before tax) $177.89
    Less Break Interest Reduction 2.00% p.a. Early Termination Charge (before tax) $82.74
    Effective interest rate on withdrawn amount 2.30% p.a. Interest received after Early Termination Charge (before tax) $95.15

    Note: the minimum rate is 0%. The above calculation is before tax.

    Withdrawing part of a Term Deposit

    You won’t be paid any interest you’re owed on the amount you withdraw until the rest of the deposit matures.

    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.

  • Withdrawing all of your deposit early

    You’ll get the deposit and any interest owing straight away.

What it costs

There are no account management or transaction fees, however Early Termination Charges apply if you break your standard or PIE Term Deposit early.

Break a Term Deposit

Apply to break your Term Deposit early by filling out the Term Deposit or PIE Term Deposit break or change form (PDF 53.7 kB).

Once you've completed the form you can:

Download the Term Deposit Terms and Conditions (PDF 41.0 kB) or pick up a copy from your local Kiwibank

Download the Terms and Conditions for the PIE Term Deposit Fund (PDF 52.3 kB) or pick up a copy from your local Kiwibank.

Units in the Kiwibank PIE Term Deposit Fund are distributed by Kiwibank and are issued by Kiwibank Investment Management Limited. Download the Terms and Conditions for the Kiwibank PIE Term Deposit Fund (PDF 52.3 kB), or pick up a copy from your local Kiwibank.

Download Kiwibank Limited’s Disclosure Statement (PDF 1.0 MB) 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.

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