Best Term Deposit FAQ - RaboPlus New Zealand

Simply complete the online application process and send the following information to us:

• Signed account summary form 

•  Signed Direct Debit Authority 

• Evidence of your nominated bank account name and number. This can be a statement, internet printout, or an encoded deposit slip. 

• RWT exemption certificate (only if applicable) 

• For accounts on behalf of a minor, a certified copy of identification for the minor and authorised signatory.

• For business accounts, a certified copy of identification for the authorised signatory.

• For trust accounts, a certified copy of identification for the authorised signatory if they are not a trustee of the trust.
  

Following receipt and acceptance of your application, we will post you your account number together with a Digipass (a device that allows you to access the secure site). A few days later, your initial PIN code for the Digipass will arrive. You can use these to login and manage your accounts and move your funds into our term deposits and/or managed funds if you wish.

First, you need to open a Savings Account. Once you have activated your Savings Account, and received your Welcome Pack and Initial PIN in the post, you can create a Term Deposit online.

To create the Term Deposit, simply login to your account and click "Term Deposits" in the left-hand menu, and then "New".

• You can select from any one of the following terms:
  - 1 month
  - 3 months
  - 6 months
  - 1 year
  - 2 year
  - 3 year
  - 4 year
  - 5 year

• As many as you like.

• For investment periods of 6 months or less, interest is paid on the maturity of the term deposit.

• For investment periods of 1 to 5 years, you can nominate to have interest paid monthly; quarterly; six-monthly; or annually on the anniversary of the investment and at maturity.

Interest is calculated daily on the balance of the term deposit. It is then paid at the frequency requested at the time of the term deposit creation.

Any interest paid out from your term deposit will be deposited into your RaboPlus on call account, unless you have elected to both automatically reinvest the term deposit and compound the interest. In this case the interest will automatically be added to the original capital sum and incorporated in the new term investment.

• Yes. For investment terms of 1 year or less you may select to capitalise your interest payments in conjunction with our automatic reinvestment option. The interest will automatically be added to the original capital sum and incorporated in the new term investment.

If you select Automatic Reinvestment, upon maturity your money will be reinvested for another term of the same length. The prevailing interest rate at the time of reinvestment will apply to the new term. For term deposits of 1 year or less you can also choose to capitalise your interest in conjunction with your automatic reinvestment option. In this case the interest earned on your maturing deposit will be added automatically to the principal balance of the new deposit. 

You have the facility to cancel the automatic reinvestment of a Term Deposit up to the business day prior to the maturity of the deposit. You can cancel your request online. Simply login to your account and click "Term Deposits", then "Summary(Current)". On this screen click the "Cancel automatic reinvestment" button and follow the onscreen prompts.

If you have selected the option to Capitalise Interest when arranging a term deposit, on maturity the interest will automatically reinvest with the principal for another term of the same length (this option is only valid when you have also elected to automatically reinvest the principal). You set these options during the creation of the term deposit.

If you do not want this to happen, during the creation of the term deposit you can simply nominate the RaboPlus Savings Account to which you want the interest to be paid.

The Capitalise Interest feature is only available for investments with terms of one year or less.

Unless you hold an exemption certificate, Resident Withholding Tax will be deducted when interest is paid to you. This is a legal requirement and not a bank charge.

Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest paid to you. It is deducted at the time when the interest is paid (from RaboPlus to you).

When you open a RaboPlus account online, you will be asked to select your RWT rate. In the case of joint accounts, you'll be required to select one rate, which will be applied to all your accounts.

Whichever RWT rate you choose will be applied to each RaboPlus account you hold.

• 0% (in this case a current RWT exemption certificate must be provided)
• 12.5%
• 21% 
• 33%
• 38%

If you do not provide an IRD number, we are required to deduct RWT at 38%. In the case that you supply an IRD number but fail to select an RWT rate, then we are legally required to deduct RWT at 38%.

You can change your RWT rate at any time by logging in to your account and clicking "Tax", then "Change tax details".

At the end of each financial year (31st March), we will generate a RWT certificate online for customers. This certificate is only available by logging into our secure site.

To print the certificate, simply click "Tax" in the left-hand menu, and then "RWT Interest". If you then scroll down to the bottom of the screen there is a link to print out the IR15.