TERM PIE FUNDS
The tax-efficient term deposit
Are you a higher rate taxpayer? Term PIE Funds enable you to invest with a maximum tax rate of 28%.
12 month special
3.85
%
p.a.
What makes a Term PIE different from a Term Deposit?
When you earn interest from a PIE, the tax you pay is based on your Prescribed Investor Rate (PIR) - a special tax rate just for PIE accounts.
You will pay less tax than with a regular savings or investment account if your Income Tax rate is 30%, 33% or 39%.
Lower tax on earnings
You could pay less tax on the interest you earn, thanks to the maximum PIE tax rate (PIR) of 28%
Keep more of your earnings
Because of the lower tax rate, you can end up with more money in your pocket compared to a standard account
No impact on your tax bracket
PIE income doesn’t get added to your personal income, so it won’t push you into a higher tax bracket
Why choose a Heartland Term PIE?
Canstar's Savings Bank of the Year
We are very proud to be awarded Canstar’s Bank of the Year - Savings for the eighth consecutive year! This achievement is awarded to the institution that provides the strongest combination of products, accounting for the price positioning, features, savings tools and flexibility of the products assessed within Canstar’s Savings Account Star Ratings profiles, as well as supporting savers through a competitive Term Deposit offering.
Looking for something else?
Heartland Bank savings accounts are a great way to put aside your money and save for your goals. Here are a few options:
90 DAY NOTICE SAVER
Great interest rate with the flexibility to access your funds with 90 days’ notice.
3.50
%
p.a.
CASH PIE
Boost your savings with tax-efficient returns.
2.75
%
p.a.
DIRECT CALL
A ‘no strings attached’ savings account with a competitive interest rate.
2.25
%
p.a.
Got questions?
- What does the Heartland Term PIE Fund invest in?
- The fund invests exclusively in Heartland Bank deposits, ranking equally with all other deposits.
- Are there any fees?
- There are no fees with a Heartland Term PIE.
- How do I access my money?
- A Term PIE is a fixed term investment. but we understand that people’s circumstances do change. We may accept written requests for early repayment in certain circumstances, such as the death of an investor or unforeseen financial hardship (but we’re not required to do so). If we do agree to an early repayment, the interest rate payable in respect of your term deposit may be reduced. You can request an early, full or partial break by contacting our Retail team on 0800 85 20 20 or [email protected].
- If my request to withdraw funds early from a term deposit is approved, how will the interest reduction be calculated?
-
If the funds have been invested for less than one month, Heartland will return the requested amount but will not pay you interest on that amount.
If the funds have been invested for longer than one month, the standard process is for the interest rate payable in respect of the funds that you are withdrawing to be reduced by 2.00% p.a. over the term of the investment. However, Heartland may from time-to-time reduce the interest rate payable by a larger amount, up to a maximum of 3% p.a, or a smaller amount. Your final return will not be reduced below zero. - When is interest paid?
- Quarterly distributions are made on the Units held in your Term PIE, along with a final distribution at the end of the agreed term. Quarterly distribution dates align within the end of each standard financial quarter, being 31 March, 30 June, 30 September and 31 December.
- Can I open a Term PIE if I don't bank with Heartland?
- Yes. As part of the onboarding process we will also set you up with a Direct Call or a Business Call account to accompany your new Term PIE. These flexible savings accounts have no account fees, unlimited withdrawals, and offer a competitive interest rate.
- What happens when the term comes to an end?
- Prior to the maturity date of your Term PIE, Heartland will give you notice to tell you that your investment is about to mature. This maturity notice will give you the option to pay the funds to a Heartland bank account in your name, reinvest the full balance or reinvest part of the balance.
- What is a PIE?
- A PIE, standing for portfolio investment entity, is an entity which invests the contributions from its investors in different types of passive investment. Heartland’s PIE fund invests exclusively in Heartland Bank deposits, ranking equally with all other deposits.
- What is a PIR?
- A PIR, standing for prescribed investor rate, is the tax rate that your portfolio investment entity (PIE) uses to calculate the tax on the income from the investment of your contributions.
- How do I work out my PIR?
- Your PIR is based on your taxable income, such as salary, wages and any other sources of income you would include in your income tax return. Use the PIR tool on the IRD website to determine yours.
Our Savings and Deposits accounts are DCS-protected.
The Depositor Compensation Scheme (DCS) covers eligible depositors up to $100,000 held in DCS-protected accounts. Find out more.Can't find what you're looking for?
We have a great team standing by to answer any of your investment questions.
Contact us