PIE Term Deposits NZ 2026
Maximise your after-tax returns with PIE (Portfolio Investment Entity) term deposits. Pay tax at your PIR rate (10.5%, 17.5%, or 28%) instead of standard RWT rates.
Tax Savings Example
$10,000 deposit at 4.40% for 12 months
Low Income PIR
Annual taxable income up to $14,000 in either of the last two years
Medium Income PIR
Annual taxable income between $14,001 - $48,000 (approx)
Standard PIR
Annual taxable income over $48,000. Still better than 33% RWT!
Current Term Deposit Rates
Many of these banks offer PIE options - contact them for PIE-specific rates
| Bank | Term | Gross Rate | After 28% PIR | After 33% RWT |
|---|---|---|---|---|
| Westpac | 5 years | 4.40% | 3.17% | 2.95% |
| ASB | 5 Years | 4.30% | 3.10% | 2.88% |
| Westpac | 4 years | 4.30% | 3.10% | 2.88% |
| Rabobank | 5 years | 4.25% | 3.06% | 2.85% |
| ANZ | 5 years | 4.20% | 3.02% | 2.81% |
| Rabobank | 4 years | 4.11% | 2.96% | 2.75% |
| Westpac | 3 years | 4.10% | 2.95% | 2.75% |
| ASB | 4 Years | 4.10% | 2.95% | 2.75% |
| BNZ | 5 years | 4.10% | 2.95% | 2.75% |
| ANZ | 4 years | 4.05% | 2.92% | 2.71% |
Complete Guide to PIE Term Deposits
What is a PIE Term Deposit?
A PIE (Portfolio Investment Entity) term deposit is a special type of term deposit where your interest income is taxed at your Prescribed Investor Rate (PIR) instead of Resident Withholding Tax (RWT). This can result in significant tax savings, especially for those who would otherwise pay the top 33% RWT rate.
How PIE Tax Works
| Your Situation | PIR Rate | vs Standard RWT |
|---|---|---|
| Income ≤$14,000 | 10.5% | Save 22.5% |
| Income $14,001-$48,000 | 17.5% | Save 15.5% |
| Income $48,001-$70,000 | 28% | Save 5% |
| Income >$70,000 | 28% | Save 5% |
Key Benefits of PIE Term Deposits
- Lower tax rate: Maximum 28% vs 33% RWT for most taxpayers
- No tax return needed: PIE income is taxed at source and doesn't need to be declared
- Correct tax rate: Your PIR is based on your actual income, not a default rate
- Government guaranteed: Still protected up to $100,000 under DGS
Which Banks Offer PIE Term Deposits?
Several NZ banks and financial institutions offer PIE term deposits, including:
Note: PIE rates may differ slightly from standard term deposit rates. Contact banks directly for current PIE-specific rates.
How to Find Your PIR Rate
Your PIR is based on your taxable income and PIE income over the last two income years. You can calculate your PIR using IRD's online tool or speak with your bank. It's important to use the correct PIR - if you use a rate that's too low, you may face penalties.
PIE Term Deposit FAQs
What is a PIE term deposit?
A PIE term deposit is a term deposit where interest is taxed at your Prescribed Investor Rate (PIR) - 10.5%, 17.5%, or 28% - rather than standard Resident Withholding Tax. This often results in paying less tax on your interest income.
Who benefits from PIE term deposits?
Almost everyone! If your marginal tax rate is higher than your PIR, you'll benefit. Even high earners on the 33% tax rate benefit as the maximum PIR is 28%. Lower income earners benefit most with PIR rates of 10.5% or 17.5%.
Are PIE term deposit rates lower than standard rates?
Sometimes yes, PIE rates can be slightly lower than standard term deposit rates. However, the tax savings usually more than compensate for any rate difference. Always compare after-tax returns, not just gross rates.
Do I need to declare PIE income on my tax return?
No, PIE income doesn't need to be included in your personal tax return. The tax is deducted at source at your PIR rate, and that's the final tax. This is one of the advantages of PIE investments.
Ready to Maximise Your After-Tax Returns?
Compare all term deposit rates and find the best option for your tax situation