The National Bank Call Fund has been designed for customers who want tax effective, competitive returns and easy access to their investment.
The National Bank Call Fund has a guarantee under the New Zealand Deposit Guarantee Scheme.
The Fund only invests in deposits with ANZ National Bank Limited, which are guaranteed under the scheme.
Full details of the New Zealand retail deposit guarantee scheme, the conditions (including investor
eligibility criteria, a maximum guarantee limit per investor and a guarantee termination date of
12 October 2010) and a copy of the deed of guarantee and deed of nomination are available, free of charge
on www.treasury.govt.nz.
- It's a Portfolio Investment Entity (PIE), so tax is paid at your elected
Prescribed Investor Rate to a maximum of 30%*. This means tax on your
income from the Fund can be lower than bank deposits.
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You can access your investment via Online Banking,** over the phone or at
any National Bank branch.
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Integrated with the systems used to access everyday bank accounts, Term
Deposits and investments if you are a National Bank customer.
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You pay no entry or exit fees.
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Your investment earns the same return on every dollar, with one flat rate.
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The minimum initial investment is only $1.00 then you can make regular contributions or invest additional lump sums.
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Income is distributed quarterly.
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The Fund invests in call deposits with ANZ National Bank Limited.
- National Bank Term Fund - a tax effective PIE with competitive fixed returns.
This information is intended to get you thinking about your investment goals. It is not intended as
investment advice tailored to your personal financial circumstances. Before making investment decisions,
you should consider your individual circumstances and seek assistance from other resources, for example
financial planning services.
A copy of our National Bank Call Fund Investment
Statement is available as a PDF, or you can request one to be sent to you by calling us on
0800 18 18 18.
You'll need Adobe Acrobat Reader to read the PDF version.
If you don't have it, don't worry - it's free. Just follow this link
to the Adobe site to download a copy.
The National Bank Call fund is a tax effective PIE with competitive returns and
easy access to your money.
What is a Portfolio Investment Entity?
A Portfolio Investment Entity (PIE) is a managed fund that has tax benefits
for investors. Certain managed funds (like the National Bank Call Fund) can
apply to become a PIE and apply the tax benefits.
To explain the benefits of PIEs, let's look at managed funds before and
after PIEs.
Before PIEs
- All managed funds had to pay tax on both income and capital gains at
a flat rate of 33%. So even if your personal tax rate was 19.5%, you had
to pay 33% tax on your managed fund investment.
After PIEs
- PIEs pay no tax on capital gains on all New Zealand and most Australian
listed investments.
- Income earned by individual investors from a PIE is taxed at 19.5%
or 30%, depending on each investor's own circumstances.
- Tax on PIE income is capped at 30%, which directly benefits
investors on a personal tax rate of 33% or 38%.
For most people, this means paying less tax on an investment in a PIE, which
means a better overall return - and more money in your pocket.
An example of how you could benefit from investing in a PIE.
Hamish earns a salary of $95,000 a year and pays income tax at 38%. He
also has $100,000 invested in a bank account paying 4.00% p.a., which
earns interest of $2,480 after tax ($4,000 interest less $1,520 RWT =
$2,480). If Hamish moved his investment from the bank account to the
National Bank Call Fund, paying 4% p.a., the tax on the income from the
$100,000 invested would be capped at 30%, and there would be no further
tax payable on this income. This increases his net return to $2,800 a year
($4,000 interest less $1,200 PIE tax = $2,800). To achieve a similar return
by investing in a bank account, Hamish would have to invest in a bank
account paying 4.52% p.a. interest.
What tax rate applies to your investment?
Your investment in the National Bank Call Fund is taxed according to your
Prescribed Investor Rate (PIR). The PIR can be 0% for charities, trusts or
companies and for individual New Zealand residents will be either 19.5% or
30% (trusts can also choose a 30% PIR if they wish). If your total income in
either of the last two financial years was $38,000 or less (and your taxable
income plus PIE income was $60,000 or less), your PIR will be 19.5%,
otherwise it will be 30%. The PIR tables at
Inland Revenue can help you to determine your PIR. If in doubt,
prospective investors should seek their own independent tax advice on their
applicable PIR.
National Bank Call fund rates
The current rate of return for an investment in the
National Bank Call fund is 2.50% p.a.
The rate of return is subject to change, calculated daily and paid quarterly.
There are no fees for the National Bank Call Fund.
Read the
National Bank Call Fund Investment Statement
(PDF 138KB) and come in to any
branch of The National Bank.
You'll need Adobe Acrobat Reader to read the PDF version.
If you don't have it, don't worry - it's free. Just follow this link
to the Adobe site to download a copy.