Term Deposit Calculator

Resident Withholding Tax (RWT) is deducted by your bank on interest earned. The rate matches your marginal income tax bracket: 10.5%, 17.5%, 30%, 33%, or 39%. If you don't supply an IRD number, the bank deducts 45% by default. RWT is credited against your year-end tax. Source: IRD — RWT.

Most banks pay interest at maturity for shorter terms (3-12 months) and offer compounding (monthly, quarterly, or annually) on longer terms. Compounding gives a higher effective annual rate. For maximum returns, choose monthly compounding on long-term (24-60 month) TDs. Source: RBNZ + bank product disclosures.

All major NZ banks charge break fees if you withdraw a TD early. Typical structures: (1) Reduction in interest rate — bank pays interest at a lower 'on-call' rate (~0.05-1%) instead of the agreed TD rate for the broken period, plus (2) an admin fee of $25-50. Some banks (ASB, Kiwibank) require 31 days' notice for early withdrawal. Hardship exceptions may waive the fee. Strategy to avoid break fees: 'laddering' — split your $50k across 3, 6, 9, 12 month TDs so something matures every 3 months. This gives you regular liquidity while still earning long-term rates. Source: bank product disclosure statements + RBNZ.

Yes, if your total deposits exceed $100,000. From 1 July 2025, NZ has a Depositor Compensation Scheme (DCS) that protects deposits up to $100,000 per depositor per institution if the bank fails. Splitting $300,000 across 3 banks gives you $300,000 of protection vs only $100,000 in one bank. Eligible institutions: registered banks (ANZ, ASB, BNZ, Kiwibank, Westpac, TSB, Heartland, SBS, Co-operative Bank). Note: building societies and finance companies have different rules. Joint accounts count as one $100k limit shared between holders. Source: RBNZ Depositor Compensation Scheme.