Making an early withdrawal from your term investment
You may be able to withdraw some or all of your term deposit or BNZ Term PIE^ before it matures.
If we agree to an early withdrawal, a lower interest rate, fees, or other charges may apply.
How to withdraw your investment early
To request an early withdrawal, you’ll need to:
- give us at least 31 days’ notice before your investment matures, or
- be approved for financial hardship.
If you request a withdrawal within the first seven days of opening your term deposit or Term PIE, you don’t need to give notice or have hardship approval.
You can ask us by sending a message in Internet Banking, calling 0800 275 269 or +64 4 931 8209 from overseas, or visiting a branch.
Term deposits
If you make an early withdrawal of your term deposit, the interest you receive may be lower. Your early withdrawal interest rate depends on:
- your original interest rate, and
- how much time is left on your term when you withdraw.
The reduced rate only applies to the amount you withdraw early. We’ll let you know the estimated interest reduction when you request the withdrawal.
Calculating your early withdrawal interest rate
Early withdrawal interest rate = original interest rate × percentage of interest paid
We apply a percentage of your original interest rate based on how much of your term is left.^
| Percentage of remaining term | percentage of interest paid |
|---|---|
|
0% to less than 20% |
80% |
|
20% to less than 40% |
60% |
| 40% to less than 60% | 40% |
| 60% to less than 80% | 20% |
| 80% to less than 100% | 10% |
Example early withdrawal interest rate calculation
You invest $10,000 in a term deposit for 5 years (1826 days) at 4.30% p.a. and withdraw the full $10,000 on day 397.
- Term: 1826 days
- Days invested: 397 days
- Term remaining: 1826 −397 = 1429 days
- Percentage of term remaining: 78.3%
- Percentage of interest used: 20% (where the percentage of the term remaining is 20% to less than 40%)
- Interest rate: 4.30%
- Early withdrawal interest rate: 4.30% × 20% = 0.86%
When interest has already been paid
If we’ve already paid you interest during the term and you withdraw early, we may deduct some or all of it from your withdrawal amount.
This could mean you’ve overpaid withholding tax. You can usually claim this back by filing a tax return with Inland Revenue (IR). If you’re unsure, we recommend asking IR, your accountant, or tax advisor.
BNZ Term PIE
If BNZ accepts your request for an early withdrawal, you may be charged a break fee (which is a withdrawal fee).
The break fee reduces the return you’ve earned on the amount you withdraw early. It does this by replacing your original rate of return for the amount you withdraw early with a lower break rate. The end result is that, for the amount you withdraw early, you are treated as if you had earned the lower break rate from the start. No break fee applies if units in your account are being redeemed on maturity.
Calculating your break fee
Break fee = break amount × (days invested ÷ 365) × (agreed rate of return − break rate)
- Break amount: The amount of your early withdrawal.
- Days invested: The time (in days) you have held your Term PIE investment for.
- Agreed rate of return: The rate of return agreed with you at the time of your application.
- Break rate: The reduced rate of return applicable to the break amount. The way the break rate is calculated will change on 1 April 2026. Learn about the new break rate calculation.
Break rate calculation for break fees charged until 31 March 2026
The break rate is the standard rate that would have applied in respect of the units for the shorter term of your account until the date of the early withdrawal (as though that rate was being determined at the time of the original investment), minus an interest rate adjustment of 2%.^
Example break fee calculation (for break fees charged until 31 March 2026)
You invest $10,000 in the BNZ Term PIE for one year (365 days) at an agreed rate of return of 4.5% p.a. and withdraw the full $10,000 on day 220. The standard rate of return that would have applied for a 220-day term at the time you first made the investment was 3.3% p.a.
- Break amount: $10,000
- Days invested: 220
- Agreed rate of return: 4.5% p.a.
- Rate of return for 220 days: 3.3% p.a.
- Break rate: 3.3% p.a. − 2.0% p.a.^ = 1.3% p.a.
- Break fee: $192.88
Break rate calculation for break fees charged from 1 April 2026
Your break rate is determined by multiplying the agreed rate of return by a percentage. The percentage is determined using the table below with reference to how much of your investment term remains.
Break rate = agreed rate of return × reduced return percentage
- Agreed rate of return: The rate of return agreed with you at the time of your application.
- Reduced return percentage: This is determined by the percentage of investment term remaining.
| Percentage of investment term remaining | Reduced Return percentage |
|---|---|
|
0% to less than 20% |
80% |
|
20% to less than 40% |
60% |
| 40% to less than 60% | 40% |
| 60% to less than 80% | 20% |
| 80% to less than 100% | 10% |
Example break fee calculation (for break fees charged from 1 April 2026)
You invest $10,000 in BNZ Term PIE for one year (365 days) at an agreed rate of return of 4.5% p.a. and withdraw the full $10,000 on day 220.
- Break amount: $10,000
- Investment term: 365 days
- Days invested: 220 days
- Investment term remaining: 365 − 220 = 145 days
- Percentage of investment term remaining = 145 ÷ 365 = 39.7%
- Agreed rate of return: 4.5% p.a.
- Reduced return percentage: 60% (the percentage of investment term remaining is 20% to less than 40%)
- Break rate: 4.5% p.a. × 60% = 2.7% p.a.
- Break fee: $108.50