Term Advantage Fund (TAF) - The RaboDirect Cash PIE Term deposit

Term Advantage Fund

Minimum deposit only $1000
3, 6 and 12 month terms
Funds deposited with Rabobank

The Term Advantage Fund (TAF) is a Managed Fund where a number of investors pool money into one fund. In a similar way to a Term Deposit, this money is locked into the fund for a set term, earning a fixed rate of interest.

The TAF is specifically designed to operate in a similar way to a traditional Term Deposit, but it has been structured as a Portfolio Investment Entity (PIE) which means you may receive tax benefits.

AMP Capital Investors New Zealand Limited are responsible for the management and operation of the Fund. When you invest in the Term Advantage Fund your money will be on deposit with Rabobank.

Term Advantage Fund rates

Term	*Standard Interest Rate (p.a.)**	Effective return at 30%	Effective return at 33%	Minimum investment	Fees
3 mths	3.70%	3.81%	3.98%	$1000	None
6 mths	4.20%	4.32%	4.51%	$1000	None
12 mths	4.60%	4.73%	4.94%	$1000	None

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Some frequently asked questions

What is the Term Advantage Fund?

The Term Advantage Fund (TAF) is a Managed Fund. A Managed Fund is simply a pooled investment with many investors. The TAF is specifically designed to operate in a similar nature to a traditional Term Deposit. It only invests in deposits with Rabobank NZ and there are no fees.

The TAF is also a Portfolio Investment Entity (PIE). The PIE tax regime is designed to encourage people to engage in long-term saving and investing, with a primary focus on Managed Funds/Unit Trusts; using the favourable tax rules as the incentive.

What are the PIE tax benefits?

Portfolio Investment Entity (PIE) funds can offer significant tax benefits for investors on higher tax rates by capping the tax paid on the investment at a maximum of 28%:

Conventional savings accounts and term deposits are taxed at your Resident Withholding Tax (RWT) rate. In comparison to these products, the Term Advantage Fund attracts a maximum final Prescribed Investor Rate (PIR) of 28%, and so can offer a clear advantage to tax payers who normally have to pay 30% or 33% RWT.

In other words, if you are normally taxed at 30% or 33%, by only being taxed at 28% you get more cash in the hand.

How do I invest in the Term Advantage Fund?

For existing customers, simply log in to your account, select "Term Advantage Fund" from the left hand menu and follow the steps on-screen. Note that the funds must be cleared and available in your savings account with us first.

For new customers, you'll need to open up an On-Call savings account with us before you can invest in the Term Advantage Fund.

View more Term Advantage Fund FAQs

* Returns paid at maturity and/or annually. Investments with terms covering 31 March will pay income earned up to that date, minus applicable tax, into your RaboDirect On Call Account. Your 'accrued income' figure will then be reset to zero, and the income subsequently earned from 1 April up to the date of maturity will be paid, again minus applicable tax, into your RaboDirect On Call Account on the maturity date. Investments with terms which don't cover 31 March will pay the accrued returns, minus the applicable tax, on maturity into your RaboDirect On Call Account