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DepositRates.co.nz has compiled a table showing the rates on offer from the various PIE funds.
Westpac Interest RatesWestpac New Zealand Limited is a major bank in New Zealand and a subsidiary of the Westpac Banking Corporation, an Australian bank. It has had a presense in New Zealand since 1861 ( Forrmally known as the Bank of New South Wales, BNSW).According to their website in 2011 it has. Rates are available for Retail and Business Banking customers and apply up to the first $5,000,000 of deposits held either solely or jointly with Westpac. Westpac New Zealand Limited. You can get a copy of the current Disclosure Statement for Westpac New Zealand Limited, and a copy of the term sheet for Term Deposits here or from any Westpac.
*1 Month Rate vs Other New Zealand Banks Westpac NZ 1 Month Term Deposit Rate indicated is for a period between 30 to 59 days, with a minimum of $10,000 minimum deposit required.
*The 28% tax rate means a PIE fund can potentially provide a higher after-tax return for New Zealanders being taxed at 30% or 33% By investing in a PIE and paying less tax, your investment can grow more quickly than it would in a regular term deposit. Our Term PIE Fund is available for investments from $5,000 to $5,000,000.Friday, 18 July 2008 Cash PIE funds are the perhaps the hottest investment around at the moment with many of the banks rolling out products in the past couple of months.
Depositrates.co.nz has compiled a table comparing the rates on offer both from call funds and also from ones which have a fixed term.
The table has the advertised rate, then the effective gross rate for 33% and 39% taxpayers. It also includes the minimum investment amounts which vary considerably . In addition to what is shown Forsyth Barr has higher rates for amounts of more than $20,000, $50,000 and $250,000.
Likewise Kiwibank are offering increased rates if no withdrawals are made.
We have expressed the effective rates as they are portrayed by the providers. However a point investors should be aware of is how the rate is compounded. There are three options; Compounding daily, monthly, or interest at maturity. Each changes the final amount. Also, while these funds are promoted as benefiting those on 33% and 39% tax rates there are also benefits for people on lower marginal rates.
’The PIE also increases the gross return for those on 30% and 19.5%,’ Direct Broking marketing manager Julian Grainger says. ’Not much mind you; we’re only talking a couple of basis points. But if you’re a retiree every point counts.’
He says a 19% taxpayer with $100,000 is likely to get around $50 extra annually.
Currently there are only two providers with fixed term products, ANZ-owned finance company UDC and Kiwibank.
UDC starts a new fund each month. Currently it is taking subscriptions for the fund which starts on August 1. The rates are shown in the table below.
It’s worth noting the rates are lower than what it offered in the 12 month-term fund started a month earlier. The rates for that one were 8.90%, 9.29% and 10.21% respectively.Kiwibank Term Deposit Rates
The rates published are compiled from each providers own information.
Online ludo real money. For a full comparison table, click here.Westpac Term Deposit Rates NzCommenting is closed
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