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Cash Advantage Fund

The Cash Advantage Fund (CAF) offers you a pre-tax return similar to a traditional call savings account. 

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No longer offered

Term Advantage Fund

We no longer offer the Term Advantage Fund. If you are an existing customer, learn about what this means for you.

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Frequently asked questions

What is a Portfolio Investment Entity (PIE)?


PIE is a tax regime that was introduced on 1 October 2007 which provides tax benefits to certain managed funds investors. Income from PIE products is attributed to its investors, based on their share of the investment, and taxed at their individual Prescribed Investor Rate (PIR).

As the maximum PIR is 28%, PIE products provide tax benefits to investors in the 30% or 33% tax brackets.

Prior to the regime being introduced, investor’s earnings were taxed at the company tax rate of 33%.

What is a Prescribed Investor Rate (PIR)?


PIR is the tax rate that will be applied to any income you earn from our PIE Funds. This is similar to your Resident Withholding Tax (RWT) rate, but the maximum rate is 28% rather than 33%. You can select your PIR online. If no PIR is selected, the default rate of 28% will apply. 

To check and update your PIR:
  1. Log into RaboDirect. 
  2. Click 'My Rabo' then 'Tax Details'
  3. Click 'Actions' and select 'Change tax details'
  4. Make any required changes
  5. Confirm the changes with your Digipass

What PIR should I be on?


Just like your RWT rate, your PIR is determined by your taxable income, however it’s a little more complicated. Visit the Inland Revenue website to work out your PIR. 

How is tax on Cash PIEs paid?


Term Advantage Fund

PIE tax is deducted when interest is paid. This can occur in two instances:
  1. If your investment term overlaps 31 March, any accrued interest will be paid then, and PIE tax will be deducted.
  2. When the investment matures, all accrued interest will be paid and PIE tax will be deducted.
Cash Advantage Fund

PIE tax is deducted in two instances:

  1. When you sell units.
    The tax liability (for the current tax year) will be automatically deducted from the proceeds of the sale and paid to Inland Revenue on your behalf.
  2. At the end of the tax year (31 March).
    We will pay any outstanding tax for that tax year to Inland Revenue on your behalf.
In the second instance, we will debit or credit your RaboSaver depending on your overall tax position (calculated on a per fund basis and credited or debited as a single figure).
If a tax rebate applies, we will credit this to your RaboSaver account.

If there is a tax liability, we will follow the following steps:
  1. Your RaboSaver will be debited for the amount of the liability.
  2. If there are insufficient funds, your account will be overdrawn and we will contact you to arrange an account top-up. No overdraft fees will be charged.
  3. If we cannot contact you, we will sell units in the relevant fund(s) to meet your tax liability and cover the overdraft.