PIE Term Fund: pay less tax, earn a better return with this low-risk investment option
If you pay 30% or 33% income tax on your earnings, you could benefit from our Portfolio Investment Entity (PIE) Term Fund, which has tax capped at 28%.
Know exactly what you'll earn - Like a standard Term Deposit you receive a fixed return over a fixed period so you can be certain of what you'll earn, but unlike a standard Term Deposit the tax on a PIE Term Fund is capped at 28%.
Choose a term that suits you - we've a range of investment terms to fit your needs.
Removes temptation - Early withdrawals aren't allowed from a PIE Term Fund for the term of the investment, so your funds are safely out of reach.
Earn competitive interest - Having your tax capped at 28% coupled with our competitive interest rates, ensures you earn a good rate of return.
Save on fees - If the combined balance across your PIE Term Funds is over $10,000, you won't pay transaction fees on any accounts with the same customer number.
An example of PIE Term Fund benefits on after-tax returns for a high income earner:
John earns over $70,000 p.a. so he's on the 33% income tax rate. He recently inherited $100,000 and would like to invest the money for a year.
The table below compares the after-tax return on a standard Term Deposit with the PIE Term Fund.
| PIE Term Fund | Term Deposit | |
|---|---|---|
| Investment amount | $100,000 | $100,000 |
| Tax rate on returns | 28% | 33% |
| Example rate of return p.a. | 5.00% (5.37% p.a. effective rate for a 33% tax payer) |
5.00% |
| Total after-tax return p.a. | $3,600** | $3,350** |
**Presumes interest on maturity
Open a PIE Term Fund today
To open a PIE Term Fund, drop into your local branch, or call us today on 0800 554 554. You can download a copy of the PIE Term Fund Investment Statement here and you can also download the PIE Term Fund Prospectus here. A list of FAQs regarding our PIE Term Fund can also be found here.
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Interest rates and fees are subject to change. An Investment Statement and the current Disclosure Statement are available from any branch of The Co-operative Bank or can be downloaded here. For all lending products, The Co-operative Bank lending and insurance criteria, and fees apply. If a home loan is greater than 80% of the property's value, a low equity interest rate premium, will apply.
