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RaboDirect
 

Frequently Asked Questions

You can find answers to your questions quickly and easily by reading our frequently asked questions

How do I change the authorised signatory on a children’s account?

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We will need the new signatory to:
  • complete our change of authorised signatory form, and
  • consent to electronic verification, or
  • provide certified identification and address evidence. 

Click here to download the change of authorised signatory form. 

See our Identity Verification Checklist for identification options and a list of trusted referees who can certify these for you. The form and identity documents can be posted or emailed to us.

Note: Electronic verification is not always successful so we may still need identity documents. We’ll let you know. 

What if the child doesn’t have an IRD number?

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You can still open an account for the child, but the Resident Withholding Tax rate will be set at the maximum rate of 33%. 

Once the account is open, you can add an IRD number and update the tax rate online. 

To do this:
  1. Login to RaboDirect
  2. Click ‘My Rabo’ then ‘Tax Details’
  3. Click ‘Actions’ then ‘Change tax details’
  4. Enter the new details. 
  5. Confirm the change with the Digipass. 

Why does my child have to pay Resident Withholding Tax (RWT)?

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Although your child might not be working, interest payments are still considered a form of income. We are required to deduct tax from this interest and pay it to Inland Revenue on the child’s behalf. 

Who can certify identity documents?

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Identity documents need to be certified by a trusted referee. This can be one of the following:

• Member of the police
• Justice of the peace
• Registered medical doctor
• Kaumatua
• Registered teacher
• Minister of religion
• Lawyer
• Member of Parliament
• Registered Chartered Accountant
• Notary public
• NZ Honorary Consul

The trusted referee cannot be:

• a person related to the customer, e.g. their parent, child, brother, sister, aunt, uncle or cousin.
• the spouse or partner of the customer.
• a person who lives at the same address as the customer.

When certifying documents, the trusted referee needs to make sure the document:

• is dated
• states that it is a true copy of the original, and includes their name, occupation and signature.

We are unable to accept documentation that was certified more than 3 months ago.

How do I change my contact details?

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To change your postal and residential address within New Zealand, along with your other contact details please log into RaboDirect and select ‘My Rabo’ and then either ‘Address details’ or ‘Contact details’. Once you have entered your new contact details, please select ‘Continue’ and authorize using your Digipass.

To change your postal and residential address to an overseas address, please send a secure message. To do this, simply log into RaboDirect and select ‘My Rabo’, then ‘Create new message’. Within this message please advise if your Tax status should be changed to that of a Non-Resident and your address in your new country of residence.

How do I change the contact person on my Business account/Trust account?

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To change the authorised operator on your RaboDirect Trust or Business account, simply print off the downloadable form and post with the appropriate supporting documentation.

How do I open a Term Deposit account?

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To open a Term Deposit with Rabodirect, select 'Apply Now' on our home page, then 'Term Deposit' from the investment options and follow the instructions.

Please note that when you setup a Term Deposit account we will also setup a RaboSaver account for you.

For Existing Customers:

To set-up a Term Deposit, simply log into RaboDirect and click 'Term Deposits' then 'Create Term Deposit' from the menu at the top of the page. This will allow you to specify the amount, term (duration), and maturity instructions of the new Term Deposit.

Please note, before the funds are transferred to the Term Deposit they need to be in one of your RaboDirect Savings Accounts.

How long does it take for the funds to clear when I make a transfer into my RaboDirect account?

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When you transfer money into your RaboDirect account please allow 2 - 3 business days for the funds to clear depending on whether you direct credited the funds to your account or used our direct debit facility. During this period you earn interest at our RaboSaver rate and you are able to create a pending Term Deposit, but are unable to move the funds from your RaboDirect Savings Account/Term Deposit to your nominated bank account. This is due to the sending bank reserving the right to dishonour the funds during this period. To check when the funds have cleared please log into RaboDirect and from the home page look under 'Savings account summary' to view the available and total balances.

How do I close a PremiumSaver or PurposeSaver account?

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You are welcome to keep the account open so you can use it again in future. It can stay open at a zero balance and doesn’t incur fees.

To close the account:
  1. Log into RaboDirect
  2. Empty the account using the 'Transfers' function
  3. Click 'My Rabo' then 'Create new message'
  4. Provide the name or suffix of the account you wish to close
  5. Click 'Send'
We will then close the account and pay any remaining interest to your RaboSaver account.

How do I close my RaboDirect account?

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To close your account:
  1. sell any managed funds you hold,
  2. transfer your funds back to your nominated account, then
  3. send us a secure message.
Alternatively, you can complete our Account Closure Form.

To send a secure message, log into your RaboDirect account and click 'My Rabo' then 'Create new message'.

Any remaining funds and interest owed will be transferred back to the nominated account.

We would love to hear any feedback you have about RaboDirect and the reason for closing your account.

Can I break my term deposit or Term Advantage Fund?

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We may, at our discretion, allow you to break an investment in the Term Advantage Fund or a term deposit.

Call us on 0800 22 44 33 or send a secure message with details of the investment you wish to break. To send a secure message, log into RaboDirect and click 'My Rabo' then 'Create new message'.

We will then contact you to advise if the investment can be broken and if a fee will apply.

Once we have approved your request to break, and provided you with a break quote, confirmation from you to proceed must be received by 12.00pm on a business day to ensure it is broken that day.

The funds will be available in your RaboDirect savings account by 5.00pm that evening. From there, you can transfer them back to your nominated account online by clicking 'Transfers'. 

How do I cancel or change my Regular Savings Plan?

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  1. Log in to RaboDirect. 
  2. Click 'Transfers' then 'Pending transfers'
  3. Click the 'Actions' button
  4. Select 'Change transfer' or 'Cancel transfer'
  5. Make the required changes
  6. Enter to the next screen, then confirm the changes by following the on-screen prompts
It is not currently possible to change the date of a transfer online. You will need to cancel it and create a new one. 

Changes need to be made at least one business day before the next payment is due.

How do I change the authorised signatory on a business or trust account?

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We will need the new signatory to:

complete our change of authorised signatory form, and provide certified identification and address evidence.

See our Identity Verification Checklist for identification options and a list of trusted referees who can certify these for you.
These documents need to be posted so that we receive the original signature. Our postal address can be found on the form.

How do I update my address and contact details?

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You can update your details online. 

Residential or postal address changes:

  1. Log in to RaboDirect. 
  2. Click 'My Rabo' then 'Address Details'
  3. Click 'Actions' then 'Change address details'
  4. Enter your new contact details. 
  5. Confirm the change with your Digipass. 
Email address and phone number changes:

  1. Log in to RaboDirect. 
  2. Click 'My Rabo' then 'Contact Details'
  3. Click 'Actions' then 'Change contact details'
  4. Enter your new contact details
  5. Confirm the change with your Digipass. 

How do I update my nominated bank account?

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You can only have one nominated account but this can be changed online at any time.
  1. Log into RaboDirect
  2. Select 'My Rabo' then 'Nominated Account' from the top of the page
  3. Click the orange 'Actions' button and select 'Change Nominated Account'
  4. Enter your new nominated account details
  5. Authorise the change using your Digipass
  6. Make a deposit from your new nominated account with the reference 'verify'
Note: Any existing regular or pending transfers will be cancelled. It can take up to three business days for the new nominated account to become active.

How often will I receive statements for my RaboDirect account?

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We don’t post statements but they are available to download online at any time.

  1. Log into RaboDirect
  2. Click 'Savings' then 'Statements'
  3. Select the account and enter the date range
  4. Click 'Search'
  5. Click 'Download' to open a PDF statement.

Clicking the 'Download transactions (csv)' button will generate an excel spreadsheet that can be imported into accounting software.

I'm moving overseas – how do I update my details?

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If you are moving overseas we can update your tax status to that of a non-resident and apply the appropriate non-resident tax rate.

To arrange this, send us a secure message with the following:
  • A statement that you are a non-resident of New Zealand for tax purposes. 
  • Confirmation of the country where you are now living. 
  • Your overseas residential address. 
Note: We can’t update your tax status to non-resident if you hold PIE Funds. You will need to sell these before sending your secure message.

To send a secure message, log into RaboDirect and click 'My Rabo' then 'Create new message'.

You can also update your email address and phone numbers via the 'My Rabo' section.

  1.  Click 'Contact Details'
  2. Click the 'Actions' button then 'Change contact details'
  3. Enter your new details
  4. Confirm the change with your Digipass

I’ve changed my name. How do I update the name of my RaboDirect account?

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Just complete our Change of Name Form and post this to us along with the required supporting documents.

What is a nominated account?

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A nominated account is an external bank account held in the same name as your RaboDirect account, which you nominate as being the linked account, for the purpose of transferring money either to or from your RaboDirect account.

Can I change or cancel a Managed Funds order?

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If an order has not been sent to the fund manager for processing, it can be cancelled online. To change an order, you would need to cancel it and create a new one. 
To view a pending order:
  1. Log in to your RaboDirect account
  2. Select 'PIE Funds' from the menu at the top of the page 
  3. Click the 'Actions' button and select 'View pending orders' 

If the order hasn't been sent for processing, it can be cancelled by clicking 'Actions' then 'Cancel order'.

It is not possible to cancel an order once it has been sent for processing.

What is the Portfolio Investment Entity (PIE) regime?

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This regime provides a more reasonable method of taxation for PIE products. 

Income from PIE products is now 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 major tax benefits to investors who are usually in the 30% or 33% tax brackets. 

Prior to the 1 October 2007 when this PIE regime was introduced, investor's earnings were taxed at the company tax rate of 33%. 


When are purchase and sale orders completed?

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See our table below for the processing frequency, order cut-off time and processing times for the different fund managers.

The processing time starts when we send your order to the fund manager and ends once your unit holdings are updated, and the buy/sell amount is debited or credited from your savings account. 

Cash Advantage Fund

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ Same day


AMP Capital

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 3 days


ANZ Investments

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 3 days - All sales • 4 days - All buys


Elevation Capital

Processing frequency: Monthly | RaboDirect cut-off time 12:30pm (2 business days before the last business day of the month) | Fund manager processing time^ 10 days (depending on when buy/sell order is placed this means total time until settlement could be up to 41 days)


Devon

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 3 days


Fisher Funds

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 2-3 days


Harbour

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 3 days


Mint

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 3 days


Nikko

Processing frequency: daily | RaboDirect cut-off time 12:30pm | Fund manager processing time^ 4 days


Pathfinder

Processing frequency: daily | RaboDirect cut-off time 12:30pm (2 business days before the last business day of the month) | Fund manager processing time^ 10 days (depending on when buy/sell order is placed this means total time until settlement could be up to 41 days)


Russell Investments

Processing frequency: daily | RaboDirect cut-off time 10:30am | Fund manager processing time^ 4 days



*Trade requests only processed by RaboDirect on business days.
^These are standard processing times. Actual processing times may vary from this.

Place your order at least 15 minutes before the RaboDirect cut-off time to make sure it is sent that day. The unit price shown when you buy/sell units online is indicative only, so the unit price you receive at settlement may differ.

How is tax on Cash PIEs paid?

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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.

I received a message saying that I have to pay PIE tax in April, but since then I've sold my units?

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If you have sold units before the end of the tax year, then your PIE tax liability for those units has been taken from the sale proceeds and will not be taken from your RaboSaver Account. 

If you have sold PIE units after the end of the tax year, e.g. 2nd April, then the only PIE tax liability that arises from that sale will be for the PIE tax on the attributed PIE income from 1st and 2nd April on those PIE units sold. PIE tax on the PIE income attributed up to the 31st March before the sale will be adjusted against your RaboSaver Account.


Is there a tax certificate for PIE funds?

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You can get confirmation of your PIE income and PIE tax by downloading your Annual Investor Statement. 
  1. Log into RaboDirect
  2. Click 'My Rabo' then 'Tax Reports'
  3. Select the account owner
  4. Select 'Annual Investor Statement' in the 'Tax Report' field
  5. Click 'Search'
  6. Click 'Download' next to the year you require
We will send a secure message to advise when the Annual Investor Statement for the current tax year is available. 

What if this PIE tax puts my on call account into overdraft?

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If an overdraft in your RaboSaver Account has resulted from the tax payment, there will be no fees or debit interest accrued. We will attempt to contact you and arrange to cover this amount but if the account remains in overdraft, we will sell down sufficient units to cover the overdraft.

What is a Prescribed Investor Rate (PIR)?

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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

Why is PIE tax deducted from my RaboSaver account, rather than directly from the Managed Fund/Cash Advantage Fund?

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We decided to deduct the PIE tax from the RaboSaver account (rather than automatically selling down units) due to feedback from customers in previous tax years. 

This gives you the ability to add funds to your RaboSaver account from an outside source, or sell units to cover the tax. 

How do I deposit and withdraw funds?

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Transferring funds in

When you open an account with us, you are asked to accept our online direct debit authority. This allows you to transfer funds into RaboDirect from your nominated bank account, all within our online banking system.

You can of course make deposits from any other bank account you hold, or have other people/organisations deposit funds into your account. Just use the facilities of your other bank or provide your account number to the other party.

As an online bank, it is not possible to make cash or cheque deposits.

Transferring funds out

When you withdraw funds they must always go back to your Nominated Account. 

To make a transfer in or out:

  1. Log into RaboDirect
  2. Click on 'Transfers'
  3. Select the 'From' and 'To' accounts
  4. Enter the transfer details e.g. date and amount. 
  5. Confirm the transfer with your Digipass. 

How do I view and download my transactions?

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The best way to view your transactions is to download a bank statement.

  1. Log into RaboDirect
  2. Click 'Savings' then 'Statements'
  3. Select the account and enter the date range
  4. Click 'Search'
  5. Click 'Download'
Clicking the 'Download transactions (csv)' button will generate an excel spreadsheet that can be imported into accounting software.

How do I create a Managed Funds Regular Investor Plan?

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Existing Customers
  1. Log into RaboDirect
  2. Click 'PIE Funds' then 'Regular Investor Plans'
  3. Click 'Create Regular Investor Plan'
  4. Enter the plan details e.g. plan name, frequency and amount
  5. Click 'Search' to find a fund
  6. Click 'Buy' next to a fund you want to add
  7. Enter the percentage of your plan you want to allocate to the fund e.g. if you are investing $500 and want $250 to go into this fund, enter 50%
  8. Click 'Add' to add the fund to your plan
  9. Complete steps 5-8 for any other funds you'd like to add
  10. Click 'Confirm' and use your Digipass to authorise the transaction
Not a customer yet?

Click here to complete an online application form for our RaboSaver account. Once this is up and running, you will be able to create a Regular Investor Plan online.

Why does my child have to pay RWT?

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Although your child might not be working, interest payments are still considered a form of income. We are required to deduct tax from this interest and pay it to Inland Revenue on the child’s behalf.

How do I download my tax certificate?

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You can download tax certificates online. 
  1. Log into RaboDirect. 
  2. Click 'My Rabo' then 'Tax Reports' 
  3. Select the account owner
  4. Select the tax report you require
  5. Click 'Search'
  6. Click 'Download' next to the required year 

How do I update my tax details?

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You can update your IRD number, RWT rate and PIR rate online. 
  1. Log into RaboDirect
  2. Click 'My Rabo' then 'Tax Details'
  3. Click the 'Actions' button and select 'Change tax details'
  4. Enter the new details
  5. Confirm the change with your Digipass

How is the tax rate determined for joint accounts?

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The IRD number and RWT rate used for joint accounts is determined by the information we have for each of the account holders:
  1. If both IRD numbers are provided – the IRD number and tax rate of holder with highest rate is used. 
  2. If both IRD numbers are provided, with the same tax rate – the IRD number and tax rate of primary holder is used (the person whose details were entered first on the original application). 
  3. If no IRD numbers are provided – the account will be taxed at the maximum “non declaration” rate, currently 33%. 
  4. If only one IRD number is provided – that person’s IRD number and tax rate will be used. 
These rules apply unless one (or both) holders are tax exempt and/or non-resident. In this case, the following additional rules apply:
  1. Both holders must be tax-exempt for the account to be exempt from RWT. 
  2. If only one holder is exempt, we will use the rate of the non-exempt holder. 
  3. Both holders need to be non-resident for the account to be taxed at a non-resident rate. The higher rate will apply if the non-resident rates are different. 
  4. If only one holder is non-resident, we will use the resident’s RWT rate. 


I’ve moved overseas. How do I update my tax status?

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If you are living overseas we can update your tax status to that of a non-resident and apply the appropriate non-resident tax rate. 
So that we can do this, send us a secure message with the following details:
  1. A statement that you are a non-resident of New Zealand for tax purposes. 
  2. Confirmation of the country where you are now living. 
  3. Your overseas residential address. 

Note: We can't update your tax status if you hold PIE Funds. You will need to sell these before sending your secure message. 

To send a secure message, log into RaboDirect and click 'My Rabo' then 'Create new message'

We do not offer the Approved Issuer Levy scheme. 


What is Resident Withholding Tax (RWT)?

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Resident Withholding Tax (RWT) is the tax deducted from any investment income you receive. We deduct RWT from your interest payments and pay this to Inland Revenue on your behalf. 

When you become a RaboDirect customer, you are asked to select a RWT rate. You can amend this tax rate at any time. 

What RWT rate should I be on?

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Your RWT rate is determined by your annual taxable income. Here are the current tiers from the Inland Revenue website.


If your taxable income is $0 - $14,000 – your RWT rate is 10.5%


If your taxable income is $14,001 - $48,000 – your RWT rate is 17.5%


If your taxable income is $48,001 - $70,000 – your RWT rate is 30%


If your taxable income is $70,001 and over 33% – your RWT rate is 33%