How to Get the Highest Savings Account Interest Rates in New Zealand for 2025—And Keep More of Your Money

The Booster Savvy account also lists a 3.75% p.a. rate, with the additional feature of PIE tax benefits; however, Savvy operates as an investment fund rather than a bank account. PIE Notice Saver accounts from Kiwibank and Westpac provide tax advantages that may be especially beneficial for individuals in higher tax brackets. Below is a guide to rates, product types, eligibility, and other important factors to help you make an informed decision in 2025.

Leading Accounts and Their Features

Squirrel On-Call (3.25% p.a.)

• Rate: 3.25% p.a. (as of April 2025)
• Access: No notice period or special conditions; funds are available at any time without penalty.
• Eligibility: New Zealand residents; online application process requiring standard ID and address verification.
• Transfer timeline: Money can be moved between your main bank and Squirrel, typically within hours, seven days a week.
• Fund security: Deposits are held in trust with a major AA- rated New Zealand registered bank.

This account offers a straightforward rate without requiring users to meet bonus conditions or commit to fixed timeframes for their savings.

Heartland Notice Saver (Up to 3.75% p.a.)

• Rate: 3.75% p.a. (90-day notice) or 3.50% p.a. (32-day notice)
• Eligibility: New Zealand residents; no minimum deposit requirement.
• Tax: Interest is taxed at the standard NZ income tax rate (not PIE).
• Account opening: Apply online, providing identification and address details.

Withdrawals require giving the specified notice period (32 or 90 days). Early withdrawals may result in the loss of accrued interest or penalties.

PIE Notice Saver Accounts from Kiwibank & Westpac

• Kiwibank PIE Notice Saver: 3.35% p.a. (90 days), 2.80% p.a. (32 days)
• Westpac PIE Notice Saver: 3.10% p.a. (32 days)
• Tax: Interest is subject to a maximum tax rate of 28% under the PIE tax regime.

PIE accounts may be appropriate for those in higher tax brackets (33% or 39%). They function similarly to standard Notice Saver accounts in terms of access and notice requirements.

Booster Savvy Account (3.75% p.a.)

• Rate: 3.75% p.a. (variable, reviewed monthly)
• Type: PIE investment fund, not a traditional bank account; managed by Booster.
• Access: Instant withdrawals and debit card features via the app.
• Note: Funds are not held on deposit with a registered bank, although the fund is regulated.

The Booster Savvy account offers flexibility and PIE tax benefits, with returns subject to change. As an investment fund, it operates differently from regular bank deposit accounts.

Comparing Other Accounts

• Rabobank Notice Saver: 3.40% p.a. (60-day notice, non-PIE)
  • Provides a competitive rate with a moderate notice period.
• Standard Accounts at Major Banks: Many large institutions offer 1–2% p.a. on their on-call accounts, sometimes less, and higher rates may be conditional on maintaining a minimum balance or making regular deposits.

Factors to Consider When Selecting an Account

Access and Flexibility

• Full access without notice: Squirrel On-Call, Booster Savvy.
• Notice required for higher returns: Heartland, Kiwibank, Westpac, Rabobank.
• Tax-efficient products: Consider PIE-structured options if you are in a higher income bracket.

Safety and Regulation

• NZ Registered Banks: Heartland, Kiwibank, Westpac, Rabobank are registered and regulated in New Zealand. Deposits are generally considered low risk, though rates can vary.
• Squirrel: Funds are held in trust at a major New Zealand regulated bank.
• Booster Savvy: Funds are in an investment fund (not a bank deposit) but are regulated.

Fees and Costs

• Notice Saver accounts usually have no account or setup fees. Early withdrawal may be subject to forfeited interest or other penalties.
• Most on-call savings accounts do not charge standard transfer fees. Some may apply a fee for exceeding a set number of withdrawals per month.

Tax and Eligibility Requirements

• New Zealand tax residency and provision of an IRD (tax) number are required.
• PIE accounts require you to specify your Prescribed Investor Rate (PIR); interest is taxed at up to 28%.
• Non-PIE accounts are taxed at your applicable income tax rate (17.5%, 30%, 33%, or 39%).

Account Setup

1. Complete the provider’s online application form.
2. Submit valid identification and proof of address.
3. Link a nominated New Zealand bank account.
4. Choose your deposit amount and arrange any transfers.

Understanding Early Withdrawal Penalties

• Notice Saver Products: Early withdrawal, without giving the required notice (typically 32–90 days), may result in a loss of interest or a penalty as outlined in each product’s terms and conditions.
• On-Call and Savvy Products: Funds are available for withdrawal at any time without penalties or notice periods.

Squirrel On-Call (3.25% p.a.) currently provides a high on-call interest rate for instant access to savings. Heartland Bank’s 90-day Notice Saver (3.75% p.a.) offers one of the highest published rates for those able to meet the notice requirement. For individuals seeking after-tax benefits, considering PIE-structured accounts such as those from Kiwibank or Westpac may result in greater net returns, even if the gross rate is marginally lower. Booster’s Savvy account also provides a flexible rate with PIE advantages for those interested in investment fund options. Always review the latest terms and rates on the official websites, as rates and product features can change frequently.

Sources

• Squirrel – Ranking New Zealand’s Best and Worst Savings Accounts
• MoneyHub – Compare the Best Notice Saver Accounts

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