National Bank Term Fund has been designed for customers who want a tax effective* investment, don't need on-call access to their investment, and want to know exactly what their return will be.
Features are:
- It's a unit trust with Portfolio Investment Entity (PIE) status, so tax is effectively paid at your elected Prescribed Investor Rate (PIR)to a maximum of 28%
- Each investment in the Fund must be for a minimum of $5,000
- You pay no entry or exit fees
- Each investment earns a daily return on every dollar invested, paid out or compounded quarterly
- Income on each investment you make is distributed quarterly
- Your rate of return is locked for the term, so you know exactly how much income your investment will generate
- When an investment matures you can reinvest your funds (net of PIE tax) or have those funds paid out (net of PIE tax)
- The Fund invests in Term Deposits with ANZ National Bank Limited.
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 Term 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.
ANZ Investment Services (New Zealand) Limited ("ANZIS") is the issuer and manager of The ANZ Term Fund, marketed as "The National Bank Term Fund". The New Zealand Guardian Trust Company Limited ("NZGT") is the Trustee of The National Bank Term Fund. The National Bank, part of ANZ National Bank Limited ("ANZNB") is the distributor of units in The National Bank Term Fund.
Units in The National Bank Term Fund do not represent deposits or other liabilities of ANZNB. Units are subject to investment risk, including possible delays in repayment and loss of income and principal invested.
No entity* guarantees (either partially or fully) the capital value or performance of any products issued or managed by ANZIS, including The National Bank Term Fund.
*This includes ANZIS, ANZNB, Australia and New Zealand Banking Group Limited, NZGT, any member of their respective groups of companies, their respective directors and any other person.
Our Reserve Bank Disclosure Statement is available on this website or a request for a copy can be made at any branch.
The National Bank Term Fund is a tax effective* PIE with fixed terms and returns.
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 Term 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
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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 17.5%, you had to pay 33% tax on your managed fund investment.
After PIEs
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PIEs pay no tax on capital gains on all New Zealand and most Australian listed investments.
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Income earned by individual investors from a PIE is taxed at 10.5%, 17.5% or 28%, depending on each investor's own circumstances.
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Tax on PIE income is capped at 28%, which directly benefits investors on a personal tax rate of 30% or 33%.
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 33%. He also has $100,000 invested in a bank account paying 4.00% p.a., which earns interest of $2,680 after tax ($4,000 interest less $1,320 RWT = $2,680). If Hamish moved his investment from the bank account to the National Bank Term Fund, paying 4% p.a., the tax on the income from the $100,000 invested would be capped at 28%, and there would be no further tax payable on this income. This increases his net return to $2,880 a year ($4,000 interest less $1,120 PIE tax = $2,880). 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 Term 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 10.5%, 17.5% or 28%. Trusts can also choose between PIRs of 17.5% and 28% if they wish. The PIR information at
Inland Revenue
can help you to determine your PIR. The information detailed above does not constitute tax advice. If in doubt, prospective investors should seek their own independent tax advice on their applicable PIR.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of The National Bank's financial advisers, please contact us on 0800 18 18 18.
A copy of the Bank's
Disclosure Statement
under the Reserve Bank of New Zealand Act 1989 is available on
this website or on request from any National Bank branch, free of charge.
National Bank Term Fund
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Competitive fixed returns that are tax effective.
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Rates
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→90 days
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3.25% p.a. |
→180 days
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4.30% p.a. |
→12 months
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4.40% p.a. |
Fees
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There are no fees for the National Bank Term Fund*
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Rate of Return
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The rate of return is calculated daily and is allocated quarterly (in the form of additional units).
The income units can be compounded or paid into any nominated New Zealand bank account quarterly and at maturity.
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Read the National Bank Term Fund Investment Statement(PDF 180KB) and come into 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.
ANZ Investment Services (New Zealand) Limited ("ANZIS") is the issuer and manager of The ANZ Term Fund, marketed as "The National Bank Term Fund". The New Zealand Guardian Trust Company Limited ("NZGT") is the Trustee of The National Bank Term Fund. The National Bank, part of ANZ National Bank Limited ("ANZNB") is the distributor of units in The National Bank Term Fund.
Units in The National Bank Term Fund do not represent deposits or other liabilities of ANZNB. Units are subject to investment risk, including possible delays in repayment and loss of income and principal invested.
No entity* guarantees (either partially or fully) the capital value or performance of any products issued or managed by ANZIS, including The National Bank Term Fund.
*This includes ANZIS, ANZNB, Australia and New Zealand Banking Group Limited, NZGT, any member of their respective groups of companies, their respective directors and any other person.
Our Reserve Bank Disclosure Statement is available on this website or a request for a copy can be made at any branch.