Discovering High-Interest and Tax-Efficient Savings Options for New Zealanders Over 60 in 2025

Did you know there are various savings accounts and investment options available in New Zealand tailored to balance returns and tax considerations for seniors? This article provides an overview of financial tools and strategies designed to support retirement savings in 2025

Notice Saver Accounts Offering Competitive Returns and Flexibility

Notice saver accounts can be suitable for seniors who want to earn higher-than-typical interest rates while maintaining some access to their funds by providing advance notice before withdrawals.

Heartland Bank 90-Day Notice Saver:
Interest rate: 3.50% p.a. (among higher rates for notice saver accounts)
Minimum deposit: None required
Maximum balance: Up to $5 million
Withdrawal conditions: Requires 90 days’ notice for withdrawals
Suitable for those who can plan withdrawals in advance and seek stronger interest returns
Rabobank 60-Day Notice Saver:
Interest rate: 3.15% p.a.
Minimum deposit: $1,000
Maximum balance: Up to $5 million
Withdrawal conditions: 60 days’ notice required
Offers a relatively shorter notice period with competitive interest
Kiwibank 90-Day Notice Saver:
Interest rate: 2.85% p.a.
Minimum deposit: None
Withdrawal conditions: 90 days’ notice required
Suitable for those seeking a trusted provider with flexible access

These accounts generally offer better returns than standard savings accounts because the notice period gives banks more certainty for lending decisions. Notice periods require planning withdrawals.

PremiumSaver Accounts for Savers Seeking Growth Incentives

Rabobank’s PremiumSaver account combines competitive interest rates with bonus interest incentives that reward consistent saving.

Interest rate range: 1.10% to 2.85% p.a., depending on monthly balance growth
Bonus interest requires monthly account balance to increase by at least $50
No minimum deposit; balances up to $100,000
Withdrawals allowed anytime without penalty
Encourages disciplined saving growth with flexible access

This option may suit retirees looking to steadily grow their savings with tax-efficient features and without locking funds away.

Savvy Account: A PIE Structured Option Combining Accessibility and Investment Characteristics

The Savvy account, managed by Booster, is a non-traditional savings product structured as a Portfolio Investment Entity (PIE), blending investment-type returns with transactional features.

Return: Base rate around 2.50% p.a., with possible quarterly bonuses
Account type: Investment fund with transaction account features, including a Mastercard debit card
Tax efficiency: Taxed at your prescribed investor rate (PIR), which may be lower than the standard 28%, potentially benefiting retirement income
Access: Instant, unlimited withdrawals with no penalties
No minimum balance required
Features include budgeting tools with “money stacks” for goal setting

PIE structures allow tax on investment income at individual PIRs, which retirees may optimize if registered correctly with Inland Revenue.

Term Deposits: Fixed Interest with Limited Liquidity

Term deposits offer fixed interest rates and principal security suitable for funds not required for immediate access.

Example interest rates (approximate):
3-month term deposit: 2.50% p.a.
3-year term deposit: 2.99% p.a.
Pros: Predictable returns and capital protection
Cons: Early withdrawal penalties apply, resulting in loss of interest

Term deposits may be appropriate for a portion of retirement savings balanced with more accessible accounts.

Understanding Tax Efficiency Through PIE Structures and PIR Rates

Tax treatment impacts the net returns on savings and investments. Most bank interest is taxed as personal income, but PIE-structured products offer potential tax advantages by:

Taxing investment income at the individual’s PIR, which may be lower than the standard 28%
Allowing better preservation of savings by potentially reducing tax liabilities
Examples include the Savvy account, managed funds, and KiwiSaver schemes such as SuperLife

Retirees can optimize PIR settings by ensuring IRD tax profiles are up to date and might consider professional advice to choose suitable products.

SuperLife Investment Funds: Managed Fund Options for Retirement Savings

SuperLife offers diversified managed funds with various risk profiles for retirees interested in growth potential beyond bank deposits.

Options include index ETFs, sector funds, and age-based lifecycle (Age Steps) funds
Ability to switch funds without fees helps adjust risk and strategy over time
Fees are generally transparent and low; tax on returns is deducted at 28% (personal PIR may apply)
Suitable for seniors seeking professional management and diversification

These funds can complement savings accounts and KiwiSaver for a balanced retirement portfolio.

Practical Tips for Seniors Managing Savings Accounts

Managing savings accounts in 2025 for those over 60 typically includes:

Online application processes, requiring photo ID and proof of address
Options for joint or personal accounts; personal accounts can offer more control
Setting up automatic monthly deposits to encourage saving habits and qualify for bonuses
Reviewing account terms and rates periodically to maintain alignment with financial goals

Taking a proactive approach helps maintain suitable account selections.

Considering a Holistic Retirement Financial Plan

Savings accounts and investment choices are just one element of retirement planning. Seniors may also consider:

Retirement savings targets ranging widely depending on lifestyle and expenses
Budgeting for increasing costs like healthcare, insurance, and home maintenance
Diversifying savings between accessible accounts, term deposits, and managed investments
Consulting financial planners for personalized tax, income, and asset allocation strategies

A comprehensive approach supports financial security in retirement.

Summary

New Zealanders over 60 in 2025 have a variety of savings and investment options, including:

Notice saver accounts offering higher interest in exchange for notice periods
PremiumSaver accounts encouraging incremental balance growth with bonus interest
PIE-structured products like the Savvy account combining tax efficiency and liquidity
Term deposits providing fixed returns with lower flexibility
Managed investment funds such as SuperLife for portfolio diversification

Understanding tax implications and individual PIRs, combined with ongoing review and professional advice, can help retirees in choosing appropriate financial products aligned with their circumstances.

Sources

MoneyHub: Best Savings Accounts in New Zealand 2025
SuperLife Investment Options and Fees
MoneyHub Guide on Retirement Savings Needs in New Zealand (2025) Disclaimer: All content, including text, graphics, images and information, contained on or available through this web site is for general information purposes only. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice.

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