Term deposits linked to an estate
The way a term deposit is managed after a customer has passed depends on:
- the value of the estate
- whether the term deposit was set to reinvest
- whether the term deposit was jointly held.
What to expect
If you’ve already notified us about a bereavement, here’s what you can expect.
Estates worth under $40,000
We’ll continue to reinvest their term deposits with compounding interest. If interest was paid to a non-BNZ account, we’ll update the interest to be paid to their BNZ account. Once we’ve received all the documentation we need, we’ll pay out and close their accounts.
More about estates worth under $40,000
Estates worth over $40,000
We’ll continue to reinvest their term deposits with compounding interest. If interest was paid to a non-BNZ account, we’ll update the interest to be paid to their BNZ account. Once probate or letters of administration are granted, we’ll pay out and close their accounts.
More about estates worth over $40,000
How term deposits are reinvested
If there are instructions to reinvest
At maturity, we’ll reinvest the term deposit and compound the interest so no interest leaves the estate.
If there are no instructions to reinvest
At maturity, if the estate has not been settled, we’ll reinvest the term deposit for the available term closest to the original term.
Jointly held term deposits
If a term deposit is held jointly, we may:
- pay the money to the remaining account holder, or
- close the term deposit and reopen the investment under the remaining account holder’s name.
If we reopen the investment, the new term deposit will be set up using:
- the original amount invested
- the original interest rate
- the available term closest to the remaining time on the original term.
Bereavement support
For support and information about our process of managing an estate, visit our bereavement assistance page.