PIE FAQs
What's a PIE?
A Portfolio Investment Entity (PIE) is a managed fund investment with special tax rules. The maximum tax rate payable on a PIE investment is 30%. So if you’re currently paying 33% or 38% on your investments you could earn a better after-tax return with our PIE Term Fund.
What’s the key benefit of a PIE Term Fund?
The primary advantage of our PIE Term Fund is the fact it’s a tax effective investment option since tax is capped at 30% over the term of your investment.
Who can invest in a PIE Term Fund?
To be able to invest in our PIE Term Fund you need to be a PSIS customer 18 years or older. Anyone can become a PSIS customer. If you’re a trustee of a PSIS Family Trust you can also invest in our PIE Term Fund.
Companies or incorporated and unincorporated bodies can’t invest in the PIE Term Fund.
What’s a Prescribed Investor Rate (PIR)?
A Prescribed Investor Rate (PIR) is the rate at which a PIE fund is taxed. This rate is either 19.5% or 30% for personal investors. The PIR for trusts is either 0% or 30%.
How do I determine what my PIR is?
To determine the correct PIR for your PIE Term Fund refer to the Inland Revenue website. If you’re unsure what your PIR should be you should seek your own independent tax advice.
When am I paid a return?
Interest is only paid on maturity of your PSIS PIE Term Fund investment.
Can I break my PIE Term Fund before the fixed period is over?
You can’t withdraw any of your money from the PIE Term Fund before the investment matures, however an early withdrawal request may be considered under exceptional circumstances.
Are there any fees paid on the PIE Term Fund?
There are currently no fees payable on our PIE Term Fund. If PSIS decides to introduce any fees, PIE Term Fund holders will receive three months’ advance notice. Refer to the “What are the charges?” section of the PIE Term Fund Investment Statement for further information.
Am I only able to have one PIE Term Fund?
There’s no limit to the amount of PIE Term Funds you can open. A separate application form needs to completed for each PIE Term Fund.
Is the PIE Term Fund covered under the Crown deposit guarantee scheme?
The PSIS PIE Term Fund isn’t covered by the Crown deposit guarantee scheme. However, all of our other savings and investments accounts are covered under the scheme, with the exception of PSIS Capital Notes. For further information on the deposit guarantee scheme, visit the Question and Answer section on the Treasury’s website.
PSIS is not a registered bank, but a very co-operative co-operative.
Interest rates are subject to change. All deposits are secured by First Ranking Stock and rank equally with all existing deposits with PSIS Limited. An Investment Statement and a current registered Prospectus are available from any PSIS branch or can be downloaded here. For all lending products, PSIS Limited lending and insurance criteria, and fees apply.
