Use the calculator below to see exactly how much interest your term deposit will earn, what the maturity value will be, and your after-tax return at your Prescribed Investor Rate (PIR).
$50,000 in a 12-month term deposit at 4.5% earns $2,250 before tax. After PIR tax at 28% (for anyone with income over $53,500), that's $1,620 net, an after-tax return of 3.24%. PIE term deposits apply PIR rather than your marginal tax rate, which saves higher earners money. Rates differ between banks and terms; see the rate table below.
Term Deposit Calculator
Current Term Deposit Rates — September 2026
Banks are listed alphabetically.
| Bank | 6 months | 12 months | 18 months |
|---|---|---|---|
| ANZ | 3.55% | 4.00% | 4.20% |
| ASB | 3.55% | 4.00% | 4.15% |
| BNZ | 3.60% | 4.05% | 4.30% |
| Co-operative Bank | 3.60% | 4.10% | 4.20% |
| Kiwibank | 3.60% | 4.05% | n/a |
| Rabobank | 3.65% | 4.05% | 4.25% |
| SBS Bank | 3.55% | 4.00% | 4.20% |
| TSB | 3.45% | 3.90% | 4.00% |
| Westpac | 3.45% | 4.00% | 4.30% |
Rates have fallen roughly 0.5–0.7 percentage points since April 2026 as the OCR has continued to ease.
Always verify current rates directly with the institution.
What Is a PIR and How Does It Affect My Term Deposit Return?
Your Prescribed Investor Rate (PIR) is the tax rate applied to returns from PIE investments — including PIE term deposits. It’s based on your income over the last two tax years.
| PIR | Income threshold |
|---|---|
| 10.5% | Income under $15,600 (or total income under $53,500 with no more than $15,600 from other sources) |
| 17.5% | Income $15,601–$53,500 |
| 28% | Income over $53,500 |
Important: If you use a standard (non-PIE) term deposit, interest is taxed at your marginal rate — 33% if you earn $78,101–$180,000, or 39% above that. Choosing a PIE term deposit at the same gross rate will deliver a better after-tax return for anyone earning over $53,500.
Example: $100,000 at 4.5%, 12 months, income $120,000
| Account type | Gross interest | Tax | Net interest |
|---|---|---|---|
| Standard term deposit | $4,500 | $1,485 (33%) | $3,015 |
| PIE term deposit | $4,500 | $1,260 (28%) | $3,240 |
| PIE advantage | — | — | +$225/year |
Interest Payment Options — Which Should You Choose?
At maturity: Interest paid as a lump sum at the end of the term. Best for compounding — if you reinvest immediately, the full balance (including interest) rolls into the next term.
Monthly/quarterly: Interest paid to a nominated account during the term. Useful if you want the income for living expenses. Slightly less efficient for compounding since the interest sits in a lower-rate account between payments.
Annually: Middle ground — less frequent than monthly, allows partial compounding on multi-year terms.
For wealth building: choose “at maturity” and immediately roll the full balance (principal + interest) into the next term.
Term Deposit Ladder Strategy
A ladder spreads your deposits across different maturities so you always have money becoming available:
| Deposit | Amount | Term | Matures |
|---|---|---|---|
| 1 | $20,000 | 3 months | July 2026 |
| 2 | $20,000 | 6 months | October 2026 |
| 3 | $20,000 | 9 months | January 2027 |
| 4 | $20,000 | 12 months | April 2027 |
After the first year, roll each maturing deposit into a 12-month term. You’ll then have $20,000 maturing every 3 months: access to funds quarterly while earning 12-month rates.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- interest.co.nz term deposits (1 to 9 months): tables of current short-term deposit rates.
- interest.co.nz term deposits (1 to 5 years): tables of current longer-term deposit rates.
- interest.co.nz term PIE rates: tables of current term PIE rates.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
Frequently Asked Questions
How is term deposit interest taxed in NZ?
Standard term deposit interest is added to your income and taxed at your marginal rate (10.5%–39%). PIE term deposits are taxed at your PIR (10.5%, 17.5%, or 28%) — better for higher earners. Ask your bank specifically about PIE term deposits.
Can I add money to a term deposit during the term?
No — term deposits are fixed. You deposit a set amount for a set term, and no additional funds can be added. If you have more money to invest, you open a separate term deposit.
What happens when my term deposit matures?
Most banks auto-roll to the same term at the current market rate unless you instruct otherwise. Set a reminder 2 weeks before maturity to compare rates across banks and decide whether to roll, withdraw, or switch.
Can I break a term deposit early in NZ?
Yes, but expect a penalty. Banks apply an early repayment adjustment — typically reducing your rate by 1.0–2.0% for the period held. In some rate environments, this can mean receiving less than if you’d used a savings account. Read your specific terms before committing.
What is the minimum deposit for a term deposit in NZ?
Most NZ banks require $1,000–$5,000 minimum. Check with your specific bank. Some institutions (especially online-only) may require higher minimums.