An ASB Term Fund is a PIE alternative to a term deposit, and may provide a better after-tax return than a term deposit offering the same rate, term and fees - if you're on a 30% or higher income tax rate.
Enjoy fixed returns to suit your savings goals – from 30 days to five years
Payment options to reinvest or pay out at maturity
Tax on your returns is capped at a maximum rate of 28%
Easy to open and manage your term investments using FastNet Classic internet banking.
An ASB Term Fund could be a good option if you're on a higher income tax rate and you're looking for a fixed term investment.
If your income tax rate is 30% or higher, an ASB Term Fund may provide a better after-tax return than a term deposit offering the same interest rate, term and fees.
To open an ASB Term Fund you need a minimum investment of $5,000 and you can choose a term from 30 days to five years. Each $1 invested equals 1 unit. Returns are calculated daily. You can also manage your investments online to bank when and where it suits you.
An ASB Term Fund account may have tax advantages for you if you are a New Zealand resident on a 30% or higher income tax rate. The ASB Term Fund is a PIE Fund, which taxes your share of returns at a maximum rate of 28%.
Depending on the term, returns can be paid quarterly, six-monthly, annually or at the end of the term. You can also have it paid monthly for investments of more than $10,000, and terms of six months or longer. You can also adjust this when you manage your investments online.
For terms of six months or longer, you can choose to keep your returns invested. Effectively, you'll be earning a return on returns. Compounding returns are available when returns are paid quarterly, six-monthly or annually. Monthly returns cannot be compounded.
Choose the monthly returns option to enjoy a regular income from your ASB Term Fund account, paid directly into your New Zealand dollar bank account. To do this, you'll need to deposit $10,000 or more for at least six months.
No part of an ASB Term Fund account balance can be withdrawn before maturity, other than in exceptional circumstances that we approve. A break fee will be charged for early withdrawals from your ASB Term Fund account. Find out more about calculating break costs here.
6 months
$5,000+
9 months
$5,000+
12 months
$5,000+
Rates of return are before tax and any fees, and can change at any time. The maximum investment across all ASB Term Fund accounts held either solely or jointly with any person is $10 million. Rates are not available to financial institutions.
*Limited time only.
Whether you’re a night owl or an early bird, you can open and manage online an ASB Term Fund account at anytime, or change your payment instructions for maturity with FastNet Classic internet banking or FastNet Business. You can also reinvest online and see a visual timeline of your investment as well as being able to lock in a rate early using our rate promise feature.
Our Wealth Managers can talk you through your investment options and help you put a plan in place to protect and grow your wealth.
Log in to FastNet Classic internet banking and go to 'Open & Apply' or join now if you're not yet with ASB or registered for FastNet Classic.
Decide how much to invest, for how long, and how your interest or returns should be paid.
Confirm the details and that's it. You're good to go.
Log in anytime to manage your investment.
A tax-efficient way to save for those on a 30% or higher income tax rate.
A savings account that rewards you for not making withdrawals.
Earn a fixed interest rate over a time period you choose.
For more information refer to the ASB Cash Fund and ASB Term Fund Terms and Conditions. Units in the ASB Term Fund are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). Investments made in the ASB Term Fund are not deposits with ASB. ASB guarantees account balances and returns due but not paid (less fees and any PIE tax). The guarantee is unsecured.
ASB Wealth Managers' disclosure statements are available on request and free of charge from an ASB Wealth Manager.
