Which Savings Account Offers You the Best Rate and Instant Access in 2025? Discover Top Picks and Tax-Smart Strategies

The highest savings account interest rate in New Zealand in 2025 is currently offered by Heartland Bank’s 90-Day Notice Saver at 3.75% p.a., but with a required notice period. For those seeking immediate access and flexibility, the Squirrel On-Call Account currently has a rate of 3.25% p.a., with no notice, minimum balance, or withdrawal penalties. Other notable options include Booster Savvy (3.50% p.a. with payment features, though this is not a traditional bank account) and PIE Notice Savers from Kiwibank and Westpac, which may provide tax advantages for high-income earners. Eligibility, withdrawal conditions, and whether the account is a bank product or managed fund all affect the right choice for your needs. Below is a detailed look at how these accounts work and what they offer in 2025.

Exploring Account Options with Notable Rates in 2025

For those comparing savings accounts in 2025, the market is offering more competitive rates, particularly from notice saver and innovative fintech products. Here’s a breakdown based on rate, access, and structure:

1. Heartland Notice Saver: Highest Rate from a Registered Bank (3.75% p.a.)

• Current Rate: 3.75% p.a. (90-day notice), or 3.50% p.a. (32-day notice)
• Provider: Heartland Bank
• Access: Written notice (online or via app) required 90 (or 32) days before each withdrawal
• Eligibility: NZ residents, 18+ years old. Standard identification and proof of address are needed
• Tax: Not a PIE (Portfolio Investment Entity); taxed at your personal marginal rate (up to 39% for high income earners)
• Minimum Balance/Fees: None
• Opening Process: Application via Heartland’s website

Consider if: You prefer a NZ-registered bank and are comfortable waiting 90 days to access funds in exchange for a higher interest rate.

2. Squirrel On-Call Account: Flexible Access with a Competitive Rate (3.25% p.a.)

• Current Rate: 3.25% p.a. (as of April 2025)
• Provider: Squirrel (fintech; funds are held in trust with an AA- rated NZ bank)
• Access: Withdraw at any time; funds transferred to your nominated bank account typically within approximately two hours (9am–11pm, 7 days)
• Eligibility: NZ residents, subject to standard verification (ID, address)
• Minimum Balance/Fees: None
• Risks: Not covered by the bank deposit guarantee; regulatory structure differs from regular banks
• How to Open: Online registration at Squirrel, with digital account setup

Consider if: You value both a competitive interest rate and the ability to access your funds at any time, and are comfortable with the non-bank regulatory structure.

3. Booster Savvy Account: Managed Fund with Payment Features (3.50% p.a.)

• Current Rate: 3.50% p.a. (reviewed monthly)
• Provider: Booster (managed investment fund; not a registered bank)
• Access: Instant deposits and withdrawals, Mastercard Debit Card included, supports online payments
• Structure: PIE investment (max tax at 28%), funds managed as part of a collective investment scheme
• Risks: Investment fund risks apply; not a traditional bank savings account
• How to Open: Via Booster’s website or Savvy app following identity and address verification

Consider if: You are seeking both a competitive return and payment functionality (such as debit card), and are comfortable with managed fund investment structures.

4. PIE-Structured Notice Saver Accounts at Kiwibank and Westpac

For those in higher tax brackets (33% or 39%), PIE Notice Saver accounts at Kiwibank and Westpac may improve after-tax returns. PIE status limits maximum tax to 28%, potentially increasing returns if your personal tax rate is higher.

• Kiwibank Notice Saver:
• 3.35% p.a. (90 days notice)
• PIE structure for tax purposes
• Westpac Notice Saver:
• 3.10% p.a. (32 days notice)
• PIE structure

Both accounts have no minimum balances or fees and may be opened online. These can be suitable if you are planning your savings well in advance and are seeking to reduce your tax liability on interest.

5. Rabobank Notice Saver: Moderate Notice Period and Rate

• Rate: 3.40% p.a. (60 days notice)
• Structure: Not PIE; taxed at marginal rate
• Access: 60-day notice required; online management; no minimum balances

This option may suit those seeking a balance between a higher interest rate and moderate access if a 90-day notice period does not match your needs.

Understanding “No Strings” Bank Savings Accounts in 2025

Traditional on-call savings accounts at major NZ banks generally offer rates below those listed above (typically under 3% as of April 2025). Some may reduce interest or apply conditions if you make withdrawals or do not increase your balance each month. Compared to Squirrel On-Call, Notice Saver, or Booster accounts, these standard accounts generally offer lower rates combined with fewer features.

Taxation and PIE Status: Impact on Your Returns

• PIE Accounts (Portfolio Investment Entities): Maximum 28% tax rate on returns, which may provide a better after-tax return for those in higher tax brackets.
• Non-PIE Accounts: Returns taxed at your personal rate; may be preferable if your tax rate is 28% or lower.
• Example: For a 3.35% PIE return taxed at 28%, you may receive better net interest compared to a non-PIE account at a similar or slightly higher headline rate if your personal tax rate exceeds 28%.

It’s recommended to calculate your individual after-tax return before choosing an account, especially if you are in a higher tax bracket.

Account Features: Balances and Fees

The main accounts listed—Squirrel, Heartland, Rabobank, Kiwibank, and Westpac—do not require a minimum balance and do not charge ongoing account holding or transaction fees (apart from any fees that may apply for early withdrawal from Notice Savers).

How to Open a Competitive Savings Account in NZ in 2025

• Online applications are standard—visit the provider’s website for Squirrel, Heartland, Booster, and others
• Identification and address verification is a legal requirement
• For managed funds (e.g., Booster, Squirrel): Digital onboarding is typical, and regulatory protections may differ compared to traditional banks
• Joint accounts: Not all notice savers or fintech/on-call accounts offer joint ownership, so check specific provider terms

Considering Term Deposits

Short-term term deposits (30–90 days) at New Zealand’s major banks sometimes match or exceed the rates of notice savers (in the range of 2.25% to 3.75% p.a. for 2025), but they do not allow access to your funds until maturity.

Matching Your Savings Strategy with Account Features

• Seeking instant access and a competitive rate? Learn more about options like Squirrel On-Call (3.25% p.a.) or Booster Savvy (3.50%, as a managed fund).
• Prefer bank-backed security and do not require frequent withdrawals? Consider Heartland 90-Day Notice Saver (3.75% p.a.).
• In a higher tax bracket (33% or 39%)? PIE Notice Saver accounts from Kiwibank or Westpac may provide higher net returns, even with a slightly lower nominal interest rate.
• Want transactional features with a competitive return? Consider researching Booster Savvy.

2025 Overview: Account Types, Rates, and Considerations

In summary, the rate currently available from Heartland (3.75% with 90 days’ notice) is among the highest from registered banks, while Squirrel On-Call (3.25% with instant access) provides flexible, competitive returns. Your decision may be influenced by factors such as tax status, access needs, and comfort with providers outside the traditional banking sector. Always verify rates and terms before applying, as these are subject to change.

Sources

• Squirrel Blog: Ranking New Zealand’s best and worst savings accounts
• MoneyHub: Best Notice Saver Accounts
• Squirrel: High Interest On-Call Account

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