Notice Saver PIE

Trying to set aside funds for regular payments like provisional tax, or a major purchase? Notice Saver PIE gives you a good return while removing the temptation to dip into savings too often, with a 32-day notice period for withdrawals. 

Benefits

It's for you if:

• You’re looking for higher returns than an on-call savings account can offer
• You want to add money whenever you like
• You're saving or allocating funds for larger business expenses, and can wait at least 32 days to access some or all of your money
• You want to reduce time spent managing multiple Term Deposits
• You have $500 or more to start your account

Five ways Notice Saver PIE is different:  

1. No fixed term. Unlike Term Deposits, your investment never expires.
2. High returns – these are paid whether you make a regular deposit or not.
3. Returns paid monthly. You don’t have to wait until the investment matures. 
4. Periodic withdrawals (with notice) can be made. 
5. No account maintenance or transaction fees. Service fees may apply if you’re a frequent user of Phone Banking.

 

How it works

Set up a Notice Saver PIE

You need to have a Westpac NZ business transaction account to operate your Notice Saver PIE account(s) and make withdrawals. If you don’t already have a transaction account, this can be opened at the same time as you open your Notice Saver PIE account.

A minimum opening and ongoing balance of $500 is required.

How to transfer money in

1. Transfer funds in using Online Banking, or Phone Banking

2. Set up a Sweep Over facility into your Notice Saver PIE accounts. Automatically maintain your transaction account at a balance of your choice, so you always have enough money to cover bills while earning returns on the surplus amount.

3. Set up automatic payments, direct credits and bill payments from any New Zealand
bank account. 

4. Make cash or cheque deposits in branch

How to withdraw your money

Make multiple withdrawals of any amount, with different withdrawal dates. You just need to
give at least 32 days’ notice and maintain the minimum account balance of $500.

Give withdrawal notices by calling 0800 177 200, calling your Relationship Manager, or going into any Westpac branch. Withdrawals are paid into your Westpac transaction account or another Westpac account in your businesses name.

You can cancel your withdrawal notice, reduce the amount you wish to withdraw, or change the destination account details any time before the withdrawal date.

Please note: If you want to make a withdrawal that will leave your account with a balance of 
less than $500, you’ll be required to give 32 days’ notice then withdraw all funds and close your 
account.

Early withdrawals without notice

You have a cooling off period of seven business days, starting on the day you open your account. After this period, business account holders can’t make a withdrawal without providing at least 32 days’ notice.

As an individual, you can only make a withdrawal without giving 32 days’ notice if we agree. In deciding whether to agree, we apply our Early Withdrawal Policy for Notice Saver PIE. This assesses such requests on the basis of hardship. A return reduction is applied for early withdrawals. Companies and trusts are unable to request an early withdrawal.

Return reduction for withdrawals (individuals)

If an early withdrawal is approved for individuals, the return earned to date on your account is reduced. The return is reduced by the amount that the early withdrawal amount would have earned over the minimum notice period.

The return reduction = withdrawn amount x (Fund on Notice Rate / 365) x minimum notice period.

The return reduction will never exceed the total amount earned since your account was opened.

Example:
Your early withdrawal of $10,000 is approved on a 32 Day Notice Saver PIE account. The Funds on Notice Rate (see returns tab for more information) is 0.35% p.a. You have notified a PIR of 28%. 
The return reduction is calculated as follows:  
$10,000 x (0.35% ÷ 365 days) x 32
= $3.07
Less PIE tax refund of $0.86 ($3.07 x 28%)
Net return reduction = $2.21

Important information

For important information about Notice Saver PIE, please download the Westpac Notice Saver PIE Fund Term Sheet. We recommend you read this before making an investment.

  • 32-Day Notice Saver PIE is a product of the Westpac Notice Saver PIE Fund (Notice Saver PIE). 
  • Notice Saver PIE accounts are online, cash investments with a minimum notice period for withdrawals. 
  • As a Portfolio Investment Entity (‘PIE’), this account can potentially provide tax advantages for individuals and trusts. However for New Zealand tax resident companies, there is generally neither a tax advantage nor disadvantage (see the tax tab for more information). 
  • A $1 investment represents 1 unit. A $500 investment means you hold 500 units. 
  • Your money in Notice Saver PIE is invested solely in a New Zealand dollar bank account with Westpac NZ. 

 

Tax Benefits

Companies and PIE Tax

New Zealand tax resident companies

If your company is a New Zealand tax resident, there are generally no tax advantages or disadvantages when you invest in a PIE. That’s because your PIE income is taxed at 28%. However, there may be other benefits (such as ‘time value of money’) and potential issues (such as impact on provisional tax) to consider.

A New Zealand tax resident company has to elect a 0% Prescribed Investor Rate (or PIR) and include PIE income in its income tax return. This will be taxed at the company Income Tax Rate of 28%. As a 0% PIR applies, the PIE income does not have tax deducted at source.

If a company has residual income tax (tax not deducted at source) of more than $2,500 for an income year, the company will generally have provisional tax obligations for that income year and the following income year.

Time value of money benefit
If your company currently pays provisional tax, it can benefit from the time value of money by saving through a PIE as no PIE tax will be deducted at source. This is due to provisional tax installments occurring less frequently than the regular monthly 28% company Resident Withholding Tax (RWT) deducted from interest received on a regular savings account.

Obligation to start paying provisional tax
If your company currently doesn’t pay provisional tax (because your residual income tax is $2,500 or less), you may be required to start if additional PIE income causes your residual income tax to exceed $2,500.

Non-tax resident companies

Companies that are not New Zealand tax residents have a PIR of 28%. This rate could be higher than the approved issuer levy (AIL) or non-resident withholding tax (NRWT) rate applicable to interest on a regular savings account (generally 2%, 10% or 15%).

If a non-tax resident is engaged in business through a fixed establishment in New Zealand (i.e. a New Zealand branch), a 28% PIR still applies. However, the 28% PIR would equal the 28% company Income Tax Rate on interest from a regular savings account, if operated by the NZ branch. In this case, there should be no tax disadvantage through investing in a PIE.

PIE tax for individual, joint and trustee investors

Please click here for information on how PIE tax applies to investors other than companies.

Please note: The information provided above is general in nature and should not be construed as tax advice. Taxation legislation, its interpretation and the rates, levels and bases of taxation may change. The application of taxation laws depends on your individual circumstances. Westpac, BT Funds Management (NZ) Limited and Trustees Executors Limited do not accept any responsibility for the tax consequences of your investment in Notice Saver PIE. You should seek independent professional advice as to your particular tax position.

 

Rates of return and fees

32 Day Notice Saver PIE

The variable returns are calculated on the daily balance of your account and paid (less any PIE tax) on the last business day of each month. You can choose to have your month returns either compounded back into your account or paid out to your nominated Westpac account.

If your account balance is below the minimum investment of $500, you will not receive any returns. We will notify you in writing if your account balance is below $500 for 30 days or more.

Any portion of your balance over $10 million will not receive any returns.

Funds on Notice

When you submit a withdrawal notice, the withdrawal amount will receive a lower return until its withdrawal date. This ‘Funds on Notice Rate’ will be similar to a current 30 day Term Deposit.

Notice Saver PIE - Rates of Return
TierRate of Return
Balances $500 to $10,000,000  2.80% p.a.
0.35% p.a.
Funds on Notice

Fees

Notice Saver PIE - Fees
Note: Service fees are charged to your Westpac transaction account.
Fee typeFee amount
Account maintenance and transaction fees
Free 
Txt banking service fee
Txt alerts, txt banking balances and transfer confirmations
Free 
Phone banking service fee
Third party telephone fees may apply
First ten calls each month are free (then 50c per call)