Where Can You Earn the Most on Your Savings in 2025? Discover NZ’s Top High-Interest, Tax-Efficient Savings Options

Options are available from both established banks and regulated, innovative non-bank providers. This section outlines current offers, differences between providers, important considerations, tax implications, eligibility, and the process for opening high-interest savings accounts in New Zealand.

Current Savings Account Interest Rates in New Zealand (2025)

As of April 2025, Heartland Bank is offering 3.75% p.a. on its 90-day Notice Saver. This account requires 90 days’ notice for withdrawals and is currently among the highest rates published by New Zealand banks.

Other Notable Bank Rates:

• Heartland Bank: 3.50% p.a. (32-day notice)
• Rabobank: 3.40% p.a. (60-day notice)
• Kiwibank: 3.35% p.a. (90-day notice, PIE account), 2.80% p.a. (32-day notice)
• Westpac: 3.10% p.a. (32-day notice, PIE account)

These rates apply to “Notice Saver” accounts, meaning you need to provide advance notice of 32, 60, or 90 days in order to access your funds.

Exploring Non-Bank and Alternative Higher-Yield Options

Non-bank providers present alternatives to traditional savings accounts, offering competitive returns and varying levels of access.

• Booster Savvy Fund (not a bank):
  • 3.75% p.a. (PIE return as of April 2025)
  • No withdrawal restrictions; accessible via a Mastercard debit card and an app
  • Structured as a PIE, with a maximum 28% tax rate for high-income earners
• Squirrel On-Call Account (not a bank):
  • 3.25% p.a. (on-call, no withdrawal restrictions)
  • Near-instant transfers to and from major NZ banks
  • Full access to funds at any time

Important: These are not standard savings accounts and are not operated by registered banks. Booster and Squirrel client funds are held with major New Zealand banks within regulated investment structures. Review each provider’s terms for further explanation of fund safety measures.

Notice Saver Accounts: Features, Requirements, and How They Work

Notice Saver Accounts provide higher interest rates than typical savings or transaction accounts in exchange for reduced liquidity. You must notify your bank (via online, app, or phone) before any withdrawal, with a set notice period.

Features:

• Generally higher interest rates than on-call savings accounts
• No fees for opening or maintaining these accounts at many banks
• Interest is typically calculated daily and paid monthly (monthly compounding may apply)
• Flexible deposit requirements; many accounts have no minimums and allow high maximum balances (e.g., $5 million+)
• Applications are usually completed online, requiring identification and proof of New Zealand address
• Best suited for medium-term savings due to withdrawal notice periods

Eligibility:

• Usually limited to NZ residents or citizens, age 18+, with verified ID and address

Understanding PIE vs Non-PIE Accounts and Their Tax Benefits

• PIE (Portfolio Investment Entity) Savings Products:
  Returns are taxed at your Prescribed Investor Rate (PIR), which is capped at 28%. This may benefit savers with marginal tax rates above 28%.
  Examples (April 2025): Kiwibank and Westpac Notice Saver accounts, Booster Savvy, and Squirrel On-Call are structured as PIEs.
• Non-PIE Accounts:
  Returns are taxed at your standard income tax rate (up to 39%).
  Examples: Heartland Bank and Rabobank Notice Savers.

Illustrative Tax Example (from cited sources):
With a $10,000 investment at 5.5% in a PIE and a 39% personal tax rate, the net interest after 28% tax would be about $396, versus $335.50 after 39% tax in a non-PIE account.]

Options for Instant Access with Competitive Interest

If immediate access to your funds is a priority, consider regulated non-bank investment options:

• Booster Savvy: 3.75% p.a. (PIE, April 2025)
• Squirrel On-Call: 3.25% p.a. (PIE), no withdrawal restrictions

As of April 2025, major banks do not offer standard on-call savings accounts with rates comparable to those above; the listed returns reflect the non-bank on-call landscape.

Deciding Which Account Suits Your Needs

• For high rates and bank stability: Heartland Bank 90-day Notice Saver (3.75% p.a., subject to available rates and your tax situation)
• For high-income earners seeking tax efficiency: Consider PIE accounts (e.g., Kiwibank or Westpac Notice Savers, Booster Savvy, Squirrel On-Call)
• If you require unrestricted access: Non-bank PIEs such as Booster Savvy and Squirrel On-Call allow instant withdrawals
• Balance requirements: Heartland and Rabobank accounts have $5m limits; Kiwibank has no maximum; Westpac caps at $10m; most providers do not enforce minimums
• Regulatory status: Listed banks have robust credit ratings. Booster and Squirrel operate under regulated investment schemes with client funds held in trust with major NZ banks. Refer to provider disclosures for details.

Opening and Using High-Interest Savings Accounts

Typical steps:

1. Complete an online application on the provider’s website
2. Provide required ID, proof of address, and IRD number
3. Select your deposit amount (subject to any applicable minimums/maximums)
4. Choose your relevant tax rate: PIR for PIEs; standard IRD tax rate for non-PIE accounts
5. Set up deposits and review withdrawal timing for notice-based accounts

Additional Considerations and Rate Updates

• Interest rates may change; always review the provider’s website for current details before applying
• Notice Saver accounts may not be suitable for emergency savings because of withdrawal restrictions
• Non-bank, high-rate options such as Booster and Squirrel are secured under regulated schemes, but do not carry the same government deposit guarantees as registered banks

• Highest current bank rate: Heartland Bank 90-day Notice Saver — 3.75% p.a.
• PIE tax-efficient options: Kiwibank and Westpac Notice Saver PIE accounts (capped at 28% tax)
• Flexible, non-bank alternatives: Booster Savvy (3.75% p.a., PIE, unrestricted access), Squirrel On-Call (3.25% p.a., PIE, unrestricted access)
• Key considerations: Evaluate your need for access, tax rate, and preferred provider in light of the latest available information

Review information directly with providers to confirm current rates and ensure the product matches your savings needs, as offers can change throughout 2025.

Sources

• MoneyHub: Compare the Best Notice Saver Accounts (April 2025)
• Squirrel: Ranking New Zealand’s Best and Worst Savings Accounts (April 2025)

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