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.
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