New Zealand Savings Calculator
Project your NZD savings with compound interest. Compare bank savings accounts with term deposits and PIE funds.
Details
Result
Ending Balance
NZ$97,430
Total Deposits
NZ$70,000
Interest Earned
NZ$27,430
NZ savings — the 2026 rate landscape
On-call savings at the big four (ANZ, ASB, BNZ, Westpac) pays 2.5-3.5%. Higher yields live at Heartland, Rabobank, Squirrel, and Booster — 4.0-4.75%. 6-12 month term deposits: 5.5-6.0% across most banks. High earners should strongly prefer PIE term deposits (Kiwi Wealth, NZ Funds, Simplicity) which cap tax at 28% vs your marginal 33-39%.
PIR tax — Portfolio Investment Entity
A PIE caps tax on investment income at your Prescribed Investor Rate — 10.5%, 17.5%, or 28%. For anyone earning above $70k, a PIE term deposit pays better after-tax than a traditional TD at the same headline rate because marginal PAYE is 33-39%. Set your PIR correctly — defaulting to 28% is right for most but wrong for lower earners.
Deposit Compensation Scheme — coming 2025
RBNZ's Deposit Compensation Scheme launches mid-2025, covering up to $100,000 per depositor per bank. Before that, NZ had no formal deposit insurance — only implicit Reserve Bank backing. With the DCS live, diversify across banks if you hold more than $100k cash.
Beyond cash — PIE index funds
For horizons of 10+ years, diversified PIE index funds (Smartshares, Kernel, Simplicity, InvestNow) have historically outperformed term deposits by 3-5% annualised after fees. Fees below 0.35% are achievable. Match the vehicle to your timeframe: short-term savings in TDs/PIE TDs, long-term in PIE equity funds.
Frequently Asked Questions
Everything you need to know, in one place.
Best savings rates in NZ?
On-call savings: 3-4.5% at Heartland, Rabobank, Squirrel. Term deposits: 5.5-6.0% for 6-12 months at the big four banks in 2026. PIE funds have similar rates but cap tax at 28% — a win for 33-39% bracket earners.
What is a PIE fund?
Portfolio Investment Entity — NZ-specific structure that caps tax at 28% (your Prescribed Investor Rate) rather than your marginal 33-39% rate. For higher earners, PIE term deposits are effectively better after-tax.
Are NZ deposits government-insured?
A Deposit Compensation Scheme covering up to $100,000 per depositor per bank is coming into force in mid-2025. Before that, there is no explicit deposit insurance — only implicit confidence in the Reserve Bank.
Should I use term deposits or invest?
Term deposits beat inflation marginally. For horizons over 10 years, diversified PIE index funds (Smartshares, Kernel, Simplicity, InvestNow) have outperformed term deposits historically, but with volatility. Match the vehicle to your timeframe.
What is RWT and how is it deducted from interest?
Resident Withholding Tax is deducted at source by the bank/issuer on all interest paid. You nominate your RWT rate on the account (10.5%, 17.5%, 30%, 33%, 39%) to match your marginal tax bracket. If you pick too low a rate, IRD issues a year-end bill. Default if no rate provided: 33%. Non-residents may be subject to Non-Resident Withholding Tax (NRWT) at 15% or treaty rate. Always keep RWT certificates; they're summarised automatically in your IRD account.
How do I set up the right PIR for PIE investments?
Your PIR (Prescribed Investor Rate) is based on your income over the previous two tax years: 10.5% (lowest band), 17.5% (middle), or 28% (top). If you underdeclare, IRD will collect the shortfall with use-of-money interest. Every PIE fund requires your PIR on signup — update it when your income bracket changes. Compared to the 33% or 39% marginal rates applied to non-PIE interest/dividends, a 28% PIE cap is a meaningful saving for high earners on the same asset class.
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