If you have short term money, you can still earn good interest on it.
Presently, at-call savings accounts come in an unusually broad range of options. And this is still true even though the main banks have been simplifying their account offerings.
The Reserve Bank (RBNZ) L3 data series shows a massive $293 billion held in bank accounts at a term the will expire in three months or less, with $216 bln already on an 'overnight' basis. But much of this will be in business accounts. The RBNZ data doesn't reveal the 'household' component. But still, it is likely to be substantial billions.
If you have funds like that and think you may need them soon, here are some options. The following tables are highlighted to show after-tax rates equal-to or better-than first quarter-2024 inflation of 4.0%.
Bank savings accounts
| Account name |
Min deposit |
Offer rate |
less Tax @17.5% |
less Tax @30% |
less Tax @33% |
less Tax @39% |
|
| % | % | % | % | % | |||
| ANZ | Online Savings | $1 | 2.75 | 2.27 | 1.93 | 1.84 | 1.68 |
| Call Fund - PIE | $500 | 2.75 | 2.27 | 1.98 | 1.98 | 1.98 | |
| ASB | Savings on Call | $1 | 2.90 | 2.39 | 2.03 | 1.94 | 1.77 |
| Cash Fund PIE | $1 | 2.90 | 2.39 | 2.09 | 2.09 | 2.09 | |
| BNZ | Rapid Save | $1 | 4.55 | 3.75 | 3.19 | 3.05 | 2.78 |
| Kiwibank | On-line Call | $1 | 4.50 | 3.71 | 3.15 | 3.02 | 2.75 |
| On-line Call PIE | $1 | 4.50 | 3.71 | 3.24 | 3.24 | 3.24 | |
| Westpac | Simple Saver | $1 | 2.70 | 2.23 | 1.89 | 1.81 | 1.65 |
| Bank of China | Online saver | $10,000 | 4.70 | 3.88 | 3.29 | 3.15 | 2.87 |
| China Constr Bank | Saving | $1,000 | 2.25 | 1.86 | 1.57 | 1.51 | 1.37 |
| Co-operative Bank | Online account | $1 | 2.45 | 2.02 | 1.72 | 1.64 | 1.49 |
| Heartland Bank | Digital Saver | $1 | 5.00 | 4.13 | 3.50 | 3.35 | 3.05 |
| Direct Call | $1 | 4.60 | 3.80 | 3.22 | 3.08 | 2.81 | |
| Cash PIE | $1,000 | 4.60 | 3.80 | 3.31 | 3.31 | 3.31 | |
| HSBC | Smart Saver | $1 | 4.20 | 3.47 | 2.94 | 2.81 | 2.56 |
| ICBC | Smart Saver | $1 | 4.05 | 3.34 | 2.84 | 2.71 | 2.47 |
| Rabobank | RaboSaver | $1 | 4.25 | 3.51 | 2.98 | 2.85 | 2.59 |
| SBS Bank | Prospector Call | $1 | 1.90 | 1.57 | 1.33 | 1.27 | 1.16 |
| TSB | WebSaver | $1 | 4.20 | 3.47 | 2.94 | 2.81 | 2.56 |
In this group of basic savings accounts, BNZ offers the highest no-strings rate from a main bank, with Kiwibank a close second. Heartland offers the highest rate among all banks.
Bonus savers
| Account name |
Min deposit |
Base rate |
Offer rate |
less Tax @17.5% |
less Tax @30% |
less Tax @33% |
less Tax @39% |
|
| % | % | % | % | % | % | |||
| ANZ | Serious Saver | $1 | 1.25 | 4.50 | 3.71 | 3.15 | 3.02 | 2.75 |
| ASB | Savings Plus, no withdrwl | $1 | 2.55 | 5.00 | 4.13 | 3.50 | 3.35 | 3.05 |
| Savings Plus, one withdwl | $1 | 0.10 | 2.65 | 2.19 | 1.86 | 1.78 | 1.62 | |
| Co-operative | Step Saver | $1 | 1.90 | 4.75 | 3.92 | 3.33 | 3.18 | 2.90 |
| Rabobank | PremiumSaver | $1 | 2.50 | 5.25 | 4.33 | 3.68 | 3.52 | 3.20 |
| SBS Bank | Incentive Saver | $1 | 0.55 | 3.35 | 2.76 | 2.35 | 2.24 | 2.04 |
| Westpac | Bonus Saver | $1 | 1.00 | 4.50 | 3.71 | 3.15 | 3.02 | 2.75 |
| Bonus Saver PIE | $1 | 1.00 | 4.50 | 3.71 | 3.24 | 3.24 | 3.24 |
Here the highest rate is from Rabobank's PremiumSaver option.
Notice savers
| Account name |
Min deposit |
Offer rate |
less Tax @17.5% |
less Tax @30% |
less Tax @33% |
less Tax @39% |
|
| % | % | % | % | % | |||
| Heartland Bank | 32 day Notice Saver | $1 | 5.50 | 4.54 | 3.85 | 3.69 | 3.36 |
| 90 day Notice Saver | $1 | 5.75 | 4.74 | 4.03 | 3.85 | 3.51 | |
| Kiwibank | 32 day Notice Saver PIE | $1 | 4.80 | 3.46 | 3.46 | 3.46 | 3.46 |
| 90 day Notice Saver PIE | $1 | 5.35 | 3.85 | 3.85 | 3.85 | 3.85 | |
| Rabobank | 60 day Notice Saver | $1 | 5.40 | 4.46 | 3.78 | 3.62 | 3.29 |
| Westpac | 32 day Notice Saver PIE | $1 | 4.75 | 3.42 | 3.42 | 3.42 | 3.42 |
Heartland Bank tops those institutions offering Notice Saver accounts.
Fund manager savings accounts
| Account name |
Min deposit |
Base rate |
Offer rate |
less Tax @17.5% |
less Tax @30% |
less Tax @33% |
less Tax @39% |
|
| % | % | % | % | % | % | |||
| Booster | Savvy - PIE | $1 | 5.00¹ | 4.13 | 3.60 | 3.60 | 3.60 | |
| Dosh | Strives | $1 | 1.50 | 4.80 | 3.96 | 3.36 | 3.22 | 2.93 |
| Kernel Wealth | Smart Saver | $1 | 4.80 | 3.96 | 3.36 | 3.22 | 2.93 | |
| Cash Plus - PIE | $1 | 6.12* | 5.05 | 4.41 | 4.41 | 4.41 | ||
| Nikko AM | GoalsGetter Cash Fund PIE | $1 | 5.90^ | 4.87 | 4.25 | 4.25 | 4.25 | |
| Sharesies | Save | $1 | 4.60 | 3.80 | 3.22 | 3.08 | 2.81 | |
| Squirrel Money | On Call | $1 | 5.25 | 4.33 | 3.68 | 3.52 | 3.20 |
¹ after a fee of up to 0.60% pa. * after fee of 0.25% pa ^ after fee of 0.30% pa.
This is a new category. Because it is a relatively recent thing we have seen competition for at-call money from fund managers. These offer 'performance related' returns and are estimates which can fluctuate like any call account. When viewing their advertised rate, don't forget to deduct their fund fee if they haven't already, which we have already done in the table above. Kernel Wealth's Cash Plus PIE is not only the top earning account in this group, it is the top of all at-call offerings, even after deducting their fee. And the PIE structure pushes this benefit out to most savers irrespective of their personal marginal tax rate. Nikko AM's GoalsGetter Cash Fund PIE also delivers similar outsized returns.
Fund manager call accounts can be twinned with their broader rage of funds offering higher return options, making them a very useful place to park funds in transition.
Other institution savings accounts
| Account name |
Min deposit |
Offer rate |
less Tax @17.5% |
less Tax @30% |
less Tax @33% |
less Tax @39% |
|
| % | % | % | % | % | |||
| Christian Savings | Call | $1 | 2.25 | 1.86 | 1.58 | 1.51 | 1.37 |
| Call | $20,000 | 2.50 | 2.06 | 1.75 | 1.68 | 1.53 | |
| Call | $50,000 | 2.70 | 2.23 | 1.89 | 1.81 | 1.65 | |
| Nelson Building Socy | Call | $1 | 2.75 | 2.27 | 1.93 | 1.84 | 1.68 |
| Unity Money | Online Saver | $1,000 | 2.15 | 1.77 | 1.51 | 1.44 | 1.31 |
| Online Saver | $20,000 | 3.15 | 2.60 | 2.21 | 2.11 | 1.92 | |
| Christmas Saver | $1 | 5.00 | 4.13 | 3.50 | 3.35 | 3.05 | |
| Xceda | Super Saver | $1 | 5.00 | 4.13 | 3.50 | 3.35 | 3.05 |
| Forsyth Barr | Cash Management | $1* | 5.25 | 4.33 | 3.68 | 3.52 | 3.20 |
| Jarden Direct | Cash Management | $1* | 4.00 | 3.30 | 2.80 | 2.68 | 2.44 |
* Also offer higher rates for larger balances.
The purpose of this review is to allow you to make a high-level assessment and a short-list of options you may wish to explore. Do not make a final decision based on these tables. You must read the full product disclosure documents available on each institution's website, and if necessary seek qualified advice before you decide to invest. There are about 25 institutions reviewed here so clearly it is not practical to do a full review of all of them - which is why tables and lists like these are initially useful. They are for the beginning or your assessment, not the end.
Correction: An earlier version of this story included Nikko AM's GoalsGetter Cash Fund with their fund fee incorrectly applied. And the same error was made with Kernel Wealth's Cash Plus PIE. Both have now been updated.
24 Comments
Kiwibank has been my go-to through the last couple of years. Keeping it local and decent rates.
Aggregate bank balance sheet hasn't moved much at all in 18mo. One could argue that even if not "beating inflation", having more cash in deposits now than 18mo ago is a small W. Having had big debt has been the obvious L, not saying that lightly. Though all of my other investments have had much higher returns, readily available NZD with a return is nice.
Kiwisaver's offering not including penalties for funds transfer is very attractive. Others often hit you with a penalty on the returns just for touching the account. It is vital to have a good cash savings account for emergencies e.g. if you are hit with a big emergency spend like vet bills, unexpected flooding, car theft etc which can be paid back in later weeks.
Heartland looks interesting but it is hard not to beat the difference of no penalties at Kiwibank if you are likely to be transferring funds across for both planned and unplanned goals.
From Heartland in the fine fine print "Account holders can perform one digital self-service withdrawal a month with no fee. Each additional self-service withdrawal made beyond that will incur a $4 fee. All staff-assisted withdrawals will incur a $10 fee. The interest rate on the account is not reduced, no matter how many withdrawals you make. Refer to our Account and Service Fee Guide for more information about the fees." Disgustingly telling people they could access a mobile app was more important then the very large fees they charge for most transactions.
Heartland's mobile app is already far less accessible then their website service and pretty pointless if they have a website service already and protip the websites are often more secure. Yep priorities eh. Obfuscate the important information, discriminate against those who are disabled and cannot use their inaccessible tech and charge large fees for online transactions. How kind.
Ok so Kiwibank stays as preferred then.
Ouch, sorry to hear that. It is hard helping family into care and there are many unexpected costs that crop up outside of the large one of the housing, A&E bills, late night emergency visits included. Like immediately buying better mobility equipment and support tools to aid in safety and contact. We had alert monitors set up and even then needed to go back and add extra support, wound care and dressings support, compression stockings & spares, extra heating and ventilation support (as the place was so cold in winter and a hot box in summer), and lots of paid dinners initially just to help set up a routine and wait till the trial meal support was ironed out. New clothes and high quality cleaning of the old place was required (especially after a very bad emergency event).
Considering this is something that could happen to anyone, (or equally life important emergency events) you would hope banks would allow more access to emergency savings in cash accounts without the massive penalties.
I find it a bit confusing the way you've listed the PIE options. It's assumed that you always have a PIR of 28% when there are in fact 3 rates that may not align with your personal income tax rate. Probably better to split all the PIE accounts into a separate table and list with the different PIRs
Does this help clarify?
Dean @ Kernel here. The Cash Plus fund return is showing the Yield to Maturity, after fees. Kernel Wealth | Cash Plus Fund Page
Feel free to contact us with any questions.
There are a few other options for On-call accounts such as Booster Financial Services Limited Income Securities Portfolio (ISP). It is a PIE fund and has On-Call and Term Deposit Options up to 12 months. Currently range from 5.30% for Call Class up to 6.30% for 12 months Term Deposit. Only catch is that you can only access this through a Financial Adviser.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.