PIE Term Fund: pay less tax, earn a better return with this low-risk investment option
If you pay 33% or 38% income tax on your earnings, you could benefit from our Portfolio Investment Entity (PIE) Term Fund, which has tax capped at 30%.
Know exactly what you’ll earn – Like a standard Term Deposit you receive a fixed return over a fixed period so you can be certain of what you’ll earn, but unlike a standard Term Deposit the tax on a PIE Term Fund is capped at 30%.
Choose a term that suits you – we’ve a range of investment terms to fit your needs.
Removes temptation – Early withdrawals aren’t allowed from a PIE Term Fund for the term of the investment, so your funds are safely out of reach.
Earn competitive interest – Having your tax capped at 30% coupled with our competitive interest rates, ensures you earn a good rate of return.
Save on fees – If the combined balance across your PIE Term Funds is over $10,000, you won’t pay transaction fees on any PSIS accounts with the same customer number.
An example of PIE Term Fund benefits on after-tax returns for a high income earner:
John earns over $70,000 p.a. so he’s on the 38% income tax rate. He recently inherited $100,000 and would like to invest the money for a year.
The table below compares the after-tax return on a standard Term Deposit with the PIE Term Fund.
| PIE Term Fund | Term Deposit | |
|---|---|---|
| Investment amount | $100,000 | $100,000 |
| Tax rate on returns | 30% | 38% |
| Example rate of return p.a. | 5.00% (5.65% p.a. effective rate for a 38% tax payer) |
5.00% |
| Total after-tax return p.a. | $3,500** | $3,100** |
**Presumes interest on maturity
Open a PIE Term Fund today
To open a PIE Term Fund, drop into your local PSIS branch, or call us today on 0800 AT PSIS (287 747). You can download a copy of the PIE Term Fund Investment Statement here and you can also download the PIE Term Fund Prospectus here. A list of FAQs regarding our PIE Term Fund can also be found here.
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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.
