If you are not a New Zealand resident, you can invest in New Zealand fixed interest securities, including:
- Government bonds
- Corporate bonds
- Term deposits (a.k.a. certificates of deposit, or CDs)
- Funds

This page will help you understand what you need to know.

- In October 2008, the NZ Government has announced that all deposits in all banks, building societies, credit unions and finance companies (that are not in default of their trust deeds) will be guaranteed by the state. The guarantee expires on October 12, 2010, unless specifically extended. It is a guarantee of the institution, not of any specific product or term, so it expires on October 12, 2010 for all deposits no matter what their term. Our term deposit pages note the status of each insitution under the original program. There is a NZ$1 million limit in the amount protected, but that reduces substantially for the extended scheme. Non-citizens and non-residents are covered, unless your deposit is in a branch of an overseas bank or non-bank deposit takers - then deposits will only be guaranteed for people who are New Zealand tax residents or New Zealand citizens. The "Government Guarantee" program is undergoing changes, so you should check the NZ Treasury webpages to stay up-to-date with the latest conditions,

- International investors may be subject to New Zealand Non-Resident Withholding taxes. If your country has a double-tax treaty with New Zealand, withholding taxes deducted in New Zealand may be claimed back in your country when you file your tax return. You will need to check with your tax adviser. The official New Zealand tax rules can be checked out here (a 93 KB .pdf file) >>> and

- You may be able to avoid paying New Zealand Non-Resident Witholding taxes if the financial institution you invest with is an Approved Issuer registered with the NZ tax authorities (NZ IRD), and you agree with them that the AIL applies. The official AIL rules can be checked out here (a 215 KB .pdf file) >>> 

- Investments in New Zealand fixed interest securities are all in New Zealand dollars. You, as investor, take an exchange rate risk when you invest. This risk can go either way - either increasing your return, or decreasing your return.

- The New Zealand dollar is a fully free, floating currency. You can buy or sell it without needing any government consents of any kind. The market sets the exchange rates based on supply and demand. The NZ$ is a widely traded currency -- the 15th most traded in the world. The New Zealand Government or the central bank (RBNZ) do not set exchange rates. Both do have the ability to enter the market to buy or sell if necessary, but they have used this influence sparingly in the last 15 years, probably less than most governments with fully free, floating currencies.

- You can invest in New Zealand deposits, in currencies other than NZ$, but the interest rate that will apply is that of that currency. For example, US interest rates apply to investments in US$, even when made in New Zealand. Check with the institutions that offer this service.

- Institutions listed in the site marked with an i have indicated they have systems in place to service international investors. Each institution will advise you of their requirements for information. We cannot contact New Zealand financial institutions for you - you must do that yourself. Use the menu above, and our Directory page to find their contact phone or fax numbers, or click on an advertiser's banner or logo.

You are welcome to ask us a question by emailing us at info@interest.co.nz, but please note that we are not qualified to give advice of any sort. We monitor the average of five major New Zealand banks, based on the telegraphic transfer (TT) of funds to a New Zealand account, on September 7, 2010.

These rates are indicative only, and you should shop around for the best rate. Fees will undoubtedly apply also.

You can find current exchange rates here >>>