skip to content
RaboDirect
 

An investment with more than tax benefits

The Cash Advantage Fund (CAF) offers you a pre-tax return similar to a traditional call savings account. The benefit is that it has been structured as a Portfolio Investment Entity (PIE), which means it delivers tax benefits for 30% and 33% tax payers^. You can also feel good knowing your savings are helping to grow local agri-business.
Your money is on call

There are no withdrawal penalties

Interest compounds daily*

This means an even higher interest rate

Tax capped at 28%

Great benefits for 30% and 33% tax payers^

Low minimum investment

Open an account with only $250

Your money is deposited with Rabobank


Money invested with RaboDirect is used to fund New Zealand food and agribusiness.

Pay tax annually or on sale of units^


Another benefit of investing in this fund is that you pay tax at the end of the tax year, or when you sell units. This is an advantage over traditional deposit products where tax on interest is deducted monthly.

Boost your savings with a regular investor plan


Keep your savings on track by setting up regular payments to your Cash Advantage Fund. Just set it and forget it.

See how we stack up!

Institution Product name Rate (p.a.) Effective return at 30% (p.a.) Effective return at 33% (p.a.) Minimum investment
Cash Advantage Fund 1.00% 1.02% 1.07% $250
Call Fund 0.10% 0.10% 0.10% $500
ASB Cash Fund 0.20% 0.20% 0.21% $1
Cash PIE 0.10% 0.10% 0.10% $1,000
Online Call Fund** 0.50% 0.53% $2,000
Online Saver PIE 0.10% 0.10% 0.10% $500

Figures sourced from interest.co.nz as at 21 August 2017. *Our daily compounding interest works like this - Interest on money deposited compounds daily on Tuesday, Wednesday, Thursday and Friday. On Monday, three days' interest compounds (for Saturday, Sunday and Monday). ** Bonus interest rate of 1.00% applicable if no withdrawals are made in the month.
^ The product disclosure statement for the Cash Advantage Fund explains the PIE tax implications.


Frequently Asked Questions

What is the Cash Advantage Fund?

Share

The Cash Advantage Fund (CAF) is a type of managed fund (a pooled investment with many investors) known as a unit trust. When you invest in the CAF you are issued 'units' which represent your share of the CAF, and each day the CAF produces a 'unit price'. Your units multiplied by the unit price equals the value of your investment (before tax).

The CAF is specifically designed to provide you with a pre-tax return similar to a traditional on-call savings account. It only invests in deposits with the New Zealand branch of Rabobank Nederland; there are no fees and interest compounds daily*.

The CAF is also a Portfolio Investment Entity (PIE) which means tax is capped at 28%. The PIE tax regime is designed to encourage people to engage in long-term saving and investing, with a primary focus on managed funds; using the favourable tax rules as the incentive.

Working with AMP Capital Investors we looked at how we could bring these tax benefits to our customers, while retaining some of the key features of our RaboSaver account (no fees, ready access to your money etc). Hence the creation of the Cash Advantage Fund, the first cash PIE launched in NZ.

* Interest on money deposited compounds daily on Tuesday, Wednesday, Thursday and Friday. On Monday, three days' interest compounds (for Friday, Saturday and Sunday).


What is the Cash Advantage Fund 'effective rate'?

Share

The effective rate allows you to compare the return from the Cash Advantage Fund, with a traditional savings account where interest is taxed at a standard Resident Withholding Tax rate (up to 33%).

Although the interest rate for the Cash Advantage Fund and the savings account may be the same, if you are a 30% or 33% tax payer you will earn more in the Cash Advantage Fund as the tax is capped at 28%.

For example:

  • A RaboSaver account earning 2.25% p.a. and taxed at 33% will have an effective (gross) interest rate of 2.25%.
  • A Cash Advantage Fund investment earning 2.25% p.a. and taxed at 28% will have an effective (gross) interest rate of 2.43% for a 33% tax payer.

How do I invest in the Cash Advantage Fund?

Share
New to RaboDirect

Click here to complete an online application form for our RaboSaver account. Once this is up and running, you will be able to invest in the Cash Advantage Fund online.

Here’s a few things you will need:
  • Your IRD number
  • Your NZ driver licence and passport details (if you have them)
  • Your vehicle licence plate (if you own one)
  • An account number for another NZ bank account you hold
We use the passport and licence information to electronically identify you, however if this isn’t successful we may need you to post us some documents. After completing the online application:
  • Submit any documentation listed on the checklist
  • Make an initial deposit to activate the account
We will then send your Welcome Pack which will have everything you need to log in and start investing in the Cash Advantage Fund.

Existing Customers

You can purchase units in the Cash Advantage Fund online. 
  1. Log in to your account and click 'PIE Funds'
  2. Click 'Cash Advantage Fund' then 'Buy Cash Advantage Fund'
  3. Enter the purchase details, e.g. amount and funding account
  4. Confirm the purchase with your Digipass
Note: The funds will need to be available in one of your RaboDirect savings accounts.

Orders placed before 12.30pm on a business day will be completed that afternoon.


How do I sell units in the Cash Advantage Fund?

Share
  1. Log into RaboDirect
  2. Click 'PIE Funds' then 'Cash Advantage Fund'
  3. Click 'Actions' and select 'Sell units'
  4. Enter the number of units you wish to sell and the account to credit
  5. Confirm the sale with your Digipass
Orders placed before 12.30pm on a business day will be completed that afternoon. The funds will show in your RaboDirect savings account by 5.00pm.

How do AMP Capital fit into the picture?

Share
There are various parties involved with the Cash Advantage Fund, each with specific roles.
  • Manager (AMP Investment Management (NZ) Limited) - Licensed entity responsible for the management and operation of the Unit Trust.
  • Investment Manager (AMP Capital Investors (New Zealand) Limited) - Responsible for developing the investment strategy, setting the investment objectives and making the ongoing decisions relating to the asset allocation of the fund.
  • Promoter (AMP Capital Investors (New Zealand) Limited and Rabobank New Zealand Limited) - The sponsor and/or distributor of the fund.
  • Trustee/Custodian (The New Zealand Guardian Trust Company Limited) - Legal entity fulfilling the fiduciary and prudential responsibilities for unit holders as outlined by the trust Deed and is responsible for the safe custody of the assets of the fund.
  • Administrator (BNP Paribas Fund Services Australasia Pty Ltd - operating as BNP Paribas Security Services) - Appointed by the Manager and is responsible for the administration on behalf of unit holders / investors.
  • Registrar (BNP Paribas Fund Services Australasia Pty Ltd - trading as BNP Paribas Security Services) – Appointed by the Manager to provide registry services for the fund.
See the Product Disclosure Statement for more information.

How to open a Cash Advantage Fund

Opening a Cash Advantage Fund is easy and can be completed online. New RaboDirect customers can follow the three simple steps below.

1. Apply for a RaboSaver account


First you'll need to apply for a RaboSaver account using our online application form. Be sure to have your ID documents handy. Click here to learn more about becoming a RaboDirect customer.

2. Receive your welcome pack


Once you have applied and verified your nominated account, we will courier a Welcome Pack to your address. You’ll be able to log in to your new account using the details in the welcome pack.

3. Log in and open CAF


Log in to your new RaboDirect account and scroll down and select 'Buy Cash Advantage Fund'.

Follow the steps and start investing!

Feel good about your savings