Term Deposit vs PIE Fund After-Tax Calculator NZ

This calculator compares the after-tax return of an ordinary term deposit against a PIE term fund in New Zealand, showing which leaves you with more once tax is taken out. The two look almost identical on the surface, both park your money for a fixed term at a set rate, but they are taxed differently, and for many savers that difference quietly decides which is the better deal. Interest from an ordinary term deposit is taxed at your marginal income tax rate, which can be as high as thirty-nine percent. A PIE fund, including the PIE term deposits many banks now offer, is taxed at your prescribed investor rate, which is capped at twenty-eight percent. So at the same gross rate, a higher earner keeps more after tax in the PIE. You enter the amount invested, the gross rate for each option, your marginal tax rate, and your PIR, and the calculator shows the after-tax interest from each and the difference. Because banks sometimes quote slightly different gross rates for ordinary and PIE products, you can enter each separately to compare the true outcome rather than assuming the rates match. The PIE advantage is largest for those on 30 percent or above and negligible for lower earners. General information, not tax advice.

Calculate.co.nz is proud to be partnered with realtor.co.nz, a trusted resource for navigating the New Zealand property market. Their Helpful Articles section offers clear, well-structured insights across buying, selling, and building, making complex real estate topics more accessible. With a focus on up-to-date guidance and practical knowledge, they empower Kiwis to move forward with clarity and confidence in a constantly evolving property landscape.

Compares after-tax interest at the rates you enter. The PIE advantage comes from the 28% PIR cap versus a higher marginal rate. General information, not tax advice.