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RaboDirect
 

Frequently Asked Questions

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

What fees will I pay for managed funds purchases?

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RaboDirect charge a 0.75% entry fee for all managed fund purchases. This is reduced to 0.50% if you set up and make these purchases by Regular Investor Plan

Fund managers will also charge their own fees such as management and performance fees. See the relevant Product Disclosure Statement to find out the fees that each manager and fund charge.


Can my business open a RaboDirect account?

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The following entities can open business accounts:
  • Body Corporate
  • Maori Authority (company)
  • Incorporated Society
  • Limited Partnership
  • Private Company
  • Public Company
  • Partnership
  • Unincorporated Society
  • Sole Trader
The following entities cannot open a RaboDirect account:
  • Collective Investment Schemes
  • Financial Institutions (including fund managers)
  • Central or Local Government Entities
  • Insurance Companies
If you open a business account, you:
  • agree that you are acquiring the Internet Banking Services for the purposes of a business and that the Consumer Guarantees Act 1993 does not apply, and
  • must have appropriate internal controls to minimise the risks of fraud.

How do I open a RaboSaver for Business?

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The first step is to complete our online application form. Click here to get started. 

Here’s a few things you will need:

  • Details of the business e.g. business type, industry, address and IRD number
  • Another NZ bank account in the name of the business
  • Details of the person who will act as authorised signatory
  • Driver licence and passport details for the authorised signatory (if possible)
  • The name, date of birth and address of any Ultimate Beneficial Owners (UBO)
A UBO is any individual who controls, or owns 25% or more of the business.After completing the online application:
  • Print, sign and post the application with the supporting documents to Freepost RaboDirect, PO Box 38567, Wellington 6035
  • Make an initial deposit to activate the account
A checklist will be provided at the end of the application that will list the supporting documents. 

How do I transfer money into a RaboDirect business account?

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When you open an account with us you will be asked to provide a nominated bank account (an account in the same name at another bank) and accept our online direct debit authority. This allows you to transfer funds into RaboDirect from this nominated bank account, all within our online banking system. 

You can of course make deposits from any other bank account the business holds, or have other people/organisations deposit funds into your RaboDirect account. Just use the facilities of your other bank or provide your account number to the other party. It is not possible to make cash or cheque deposits. 

To make a transfer from your Nominated Account:
  1. Log into RaboDirect
  2. Click on 'Transfers'
  3. Select the 'From' and 'To' accounts
  4. Enter the amount
  5. Enter the date or select 'as soon as possible'
  6. Confirm the transfer with your Digipass. 

How do you change the authorised signatory for Trust or Business accounts?

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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 we can see the original signature. Our postal address can be found on the form.

How many RaboDirect Savings Accounts can my business have?

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You will be able to open up to five PurposeSaver accounts which allow you to separate your savings alongside your RaboSaver for Business account. You can give them different nicknames to meet your business needs such as 'Tax' or 'Wages'.

To open a PurposeSaver account:
  1. Log into your RaboDirect account
  2. Click 'Savings' then 'Open PurposeSaver account'
  3. Enter a nickname and select the 'Account Owner'
  4. Click 'Confirm'
Note: For legal and tax purposes these accounts will be in the same name as your RaboSaver account. To open an account in a different legal name you will need to complete an application for a new RaboDirect account.

Business account holders can also open our 60 day NoticeSaver account. Click here to find out more about this product.


Who can open and manage a Business account?

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Any individual authorised to act on behalf of the business can open and operate the RaboDirect account. Authority is provided by the individuals who are in 'effective control' of the business by way of the application documentation requirements.

This person will be acting as the authorised signatory on the account. They will be issued the Digipass and will have authority to view the account details, initiate transfers and update account information.

There can only be one authorised signatory on a business account but this person can be changed at any time.

How do you change the authorised signatory?

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.

Can I invest in the Cash Advantage Fund regularly?

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Yes. You can set up a Regular Investor Plan and invest in the Cash Advantage Fund (and any other managed funds) on a regular basis.

To create a Regular Investor Plan:

  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 bring up the list of funds
  6. Click 'Buy' next to the Cash Advantage Fund
  7. Enter the percentage of your plan you want to allocate to this 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

You can have as many funds in your plan as you like. Just remember you must invest at least $250 in each fund.

See our Invest Regularly page for more information.

How do AMP Capital fit into the picture?

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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 do I invest in the Cash Advantage Fund?

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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?

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  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.

What is the Cash Advantage Fund 'effective rate'?

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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.

What is the Cash Advantage Fund?

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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).


Can I amend or cancel a plan?

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Yes, you can cancel or change your plan online. 
  1. Log into RaboDirect.
  2. Click 'PIE Funds' then 'Regular Investor Plans'
  3. Click 'Actions' next to your plan
  4. Select 'Change' or 'Cancel'
  5. Make any required changes
  6. Click 'Confirm' and use your Digipass to authorise the transaction
Just make sure you do this at least one business day before the next investment is due.

How many Funds can I choose as part of my plan?

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You can have as many funds in your plan as you like but remember you must invest at least $250 in each fund. If you want to invest in four funds, the minimum amount of your plan will be $1,000.

What about fees?

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RaboDirect charge an entry fee each time you purchase Managed Funds which is reduced to 0.50% if you invest by way of a Regular Investor Plan (an entry fee of 0.75% is charged for one-off purchases). 

The fund managers will also charge their own fees such as maintenance and performance fees. See the Product Disclosure Statements to find out what fees will be charged. 



What happens if I have insufficient funds in my RaboDirect Savings Account?

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We will try up to 3 times (over 3 days) to complete the transaction. If it is still unsuccessful due to insufficient funds, this payment will be missed. 

If you are regularly transferring funds into your RaboDirect savings account, we recommend setting your Regular Investor Plan three business days after the funds reach your account to ensure that they are cleared.


Do my Managed Funds pay distributions?

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The following Managed Funds pay distributions:

  • Devon Australian Fund – 6 monthly (end March/September)
  • Devon Dividend Yield Fund – Quarterly (end March/June/September/December)
  • Devon Trans-Tasman Fund – 6 monthly (end March/September)
  • Elevation Capital Value Fund – Annually (end March)
  • Harbour Australasian Equity Income Fund – Quarterly (end March/June/September/December)
  • Harbour NZ Corporate Bond Fund – Quarterly (end March/June/September/December)
  • Harbour NZ Core Fixed Interest – Quarterly (end March/June/September/December)
  • Nikko AM Concentrated Equity Fund – 6 monthly (end March/September)
  • Nikko AM Core Equity Fund – 6 monthly (end March/September)
  • Nikko AM Global Bond Fund – Quarterly (end March/June/September/December)
  • Nikko AM Income Fund – Quarterly (end March/June/September/December)
  • Nikko AM NZ Corporate Bond Fund – Quarterly (end March/June/September/December)
  • Nikko AM NZ Bond Fund – Quarterly (end March/June/September/December)
  • Russell Investments Global Fixed Interest Fund – 6 monthly (end March/September)

Distributions are always paid into the RaboSaver account.

How do I know if my order has been completed?

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  1. Log in to your RaboDirect account
  2. Click 'PIE Funds' 
  3. Select 'View portfolio'’ from the 'Actions' menu

If there is a pending order you will see a 'P' (purchase) or 'S' (sale) icon in the 'Orders' column. Click 'Actions' then 'View transactions' to view completed orders. 



How do I purchase Managed Funds?

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Are you already a Managed Funds customer? 

You can now only buy additional units in funds that you currently hold in your portfolio. To do this:

  1. Login to your RaboDirect account
  2. Click ‘PIE Funds’ 
  3. Click ‘Actions’ next to your Managed Funds account and select ‘View portfolio’
  4. Click ‘Actions’ next to the fund you wish to buy
  5. Select ‘Buy more units’ 
  6. Enter the details e.g. dollar amount of units you wish to purchase 
  7. Confirm the purchase with your Digipass 
Please note: Before you can purchase managed funds your money needs to be cleared and in one of your RaboDirect Savings Accounts; it will take 2-3 business days to clear once we receive it.

Processing 
After your order has been placed online, it is sent to the fund manager for processing at the next relevant cut-off time. To view the RaboDirect cut-off and fund manager processing times for the fund you are purchasing, please see the FAQ 'When are your buys/sells completed?'

How do I sell Managed Funds?

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  1. Log in to your RaboDirect account
  2. Click 'PIE Funds'
  3. Click 'Actions' next to your Managed Fund account and select 'View portfolio'
  4. Click 'Actions' next to the fund you wish to sell
  5. Select 'Sell units'
  6. Enter the details e.g. amount of units
  7. Confirm the sale with your Digipass
We will then send your order to the fund manager for processing.

See the FAQ 'When are purchase and sale orders completed?' for our cut-off times and the fund manager processing times.

How is tax paid?

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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 each tax year (31 March)
    We will deduct any outstanding tax liability and pay this to Inland Revenue on your behalf.
This process works as follows:

We calculate your overall tax position (on a per fund basis) and credit your RaboSaver account in the event of a rebate, or debit it if there is a tax liability.

For a tax liability, we will follow these steps:
  1. Your RaboSaver account will be debited for the amount of tax owed.
  2. If there are insufficient funds, your account will be overdrawn and we will contact you to arrange an account top-up.
  3. If we cannot contact you we will sell units in the relevant fund/s, to meet your tax liability and cover the overdraft.
We will send a secure message to advise the amount owed and when this will be debited.

For more information, see our PIE Tax FAQs.


Can I cancel a notice instruction?

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Yes, a notice instruction can be cancelled at any time up until the last business day before the transfer is due.
  1. Log into RaboDirect
  2. Click 'Transfers' then 'Pending transfers'
  3. Click the 'Actions' button next to the notice instruction
  4. Select 'Cancel notice'
  5. Confirm the action with your Digipass
Note: Once the notice has been cancelled, and if you wish to load a new notice, the 60 day notice period will restart.


Can I have more than one NoticeSaver account?

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You can have one NoticeSaver account under each different account type you hold with RaboDirect. For example, if you have an individual account, a joint account, and a business account, you are able to open three separate NoticeSaver accounts.

How does NoticeSaver compare to a Term Deposit?

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NoticeSaver is a savings account with a variable interest rate, a Term Deposit is a fixed deposit with a fixed rate and period. 
There are several key differences:
  • The NoticeSaver interest rate is variable - a Term Deposit rate is fixed.
  • NoticeSaver offers access to your money after the required notice period - a Term Deposit has a fixed investment period.
  • NoticeSaver allows you to deposit money into the account whenever you like - a Term Deposit does not.

How do I close my NoticeSaver account?

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Before you can close your NoticeSaver account you will need to withdraw all the funds.
To make a withdrawal:
  1. Click 'Transfers'
  2. Select your NoticeSaver in the 'From Account' field
  3. Choose where you would like the funds paid to
  4. Enter the amount
  5. Click continue
  6. Confirm the transfer with your Digipass
Once the 60 day notice period has ended and the funds have been withdrawn, you can call us on 0800 22 44 33 or send a secure message instructing us to close the account by clicking 'My Rabo' then 'Create new message'. We will transfer any interest earned during the 60 day notice period to your RaboSaver account when the NoticeSaver account is closed.

How do I transfer money into my NoticeSaver account?

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You can make one off transfers or set up a Regular Savings Plan from your Nominated Account online.
  1. Log into RaboDirect
  2. Click 'Transfers'
  3. Select the 'From' (Nominated Account) and 'To' (NoticeSaver) accounts
  4. Select if you would like a one off or regular transfer
  5. Enter the amount, date and frequency if required
  6. Confirm the transfer
You or any other individual or organisation can deposits funds into your NoticeSaver account. Just use the facilities of your other bank or provide your account number to the other party.


How do I withdraw money from my NoticeSaver account?

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Log into your RaboDirect account 60 days before you want access to your funds and create a transfer.
  1. Click 'Transfers'
  2. Select your NoticeSaver in the 'From Account' field
  3. Choose where you would like the funds paid to
  4. Enter the amount
  5. Click continue
  6. Confirm the transfer with your Digipass
On the 'Authorise' page you will see the date the transfer will be processed.
Note: The date may be more than 60 days in the future due to the request being loaded after 4pm on a business day and/or the last day of the notice period falling on a non-business day.


How many notice withdrawal instructions can I place?

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There's no limit on the number of notice instructions you can place as long as you have sufficient cleared and available funds in the account.

How often is interest paid on a NoticeSaver account?

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Interest is calculated daily and paid on the last business day of each month. You can choose to have your interest paid back into NoticeSaver, or one of your other RaboDirect savings accounts.

What if I need funds in a hurry but haven't given 60 days’ notice?

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To make a withdrawal from NoticeSaver you will need to load a transfer request and wait the 60 day notice period before receiving your funds. For this reason, we suggest that you keep some funds in your RaboSaver account in case you need them in a hurry.

If you are suffering from financial hardship, you can apply for the early release of your funds by completing our Financial Hardship Declaration and providing evidence of the hardship. We will consider your application and advise you if it has been accepted.

See the Financial Hardship Declaration for examples of hardship and the type of evidence required.

How do I change my PIR?

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You can change your PIR rate at any time by logging into RaboDirect and clicking 'My Rabo', then 'Tax details'.  From this page click the orange 'Actions' button and then 'Change tax details'.

What PIR should I be on?

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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. 

What is a Portfolio Investment Entity (PIE)?

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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 bring introduced, investor’s earnings were taxed at the company tax rate of 33%.

Can I make withdrawals?

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Yes. Your funds are on call so you can make withdrawals at any time. Just keep in mind that this may affect your interest rate. 

If your balance on the last business day of the month is not at least $50 more than it was at the start of the month (excluding any interest paid during the month), you will earn interest at the minimum rate. 

For example: You start the month with a balance of $1,000. If you withdraw $200, this drops your balance to $800. You will need to deposit at least $250 by the last business day to bring your balance to $1,050 (opening balance + $50) and earn maximum interest. 

To make a withdrawal:

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

Can I set up a regular transfer into my PremiumSaver?

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Yes. You can set up a regular transfer into your PremiumSaver from your Nominated Account. 
  1. Log into RaboDirect
  2. Click ‘Transfers’
  3. Select the ‘From’ (Nominated Account) and ‘To’ (PremiumSaver) accounts
  4. Select regular transfer. 
  5. Enter the amount, date and frequency.
  6. Confirm the transfer.
We recommend you set up a regular savings plan for the 26th of the month, or an earlier date that is convenient to you. Doing this will ensure that the money is received by us before the last business day of the month. 

Can the PremiumSaver interest rate change?

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Yes. PremiumSaver interest rates are variable and are subject to change.

How do I close my PremiumSaver?

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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. Confirm in the message you would like to close your PremiumSaver
  5. Click ‘Send’
We will then close the account and pay any remaining interest to your RaboSaver account.

How do I know if I have met the $50 balance increase?

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You can check your balance and see if funds need to be added to your PremiumSaver online. 
  1. Log into RaboDirect
  2. Click ‘Savings’
  3. Click your PremiumSaver account number
  4. You will then see your balance, the interest rates and a statement advising if you need to add funds to your account to earn maximum interest
If this says “… you need to increase your balance by $0.00 …” then the $50 balance increase has already been met.

How do I make deposits into PremiumSaver?

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The best way to ensure you earn premium interest is to set up a Regular Savings Plan. You can set up a Regular Savings Plan and make one-off deposits from your Nominated Account online. 
  1. Log into RaboDirect
  2. Click 'Transfers'
  3. Select the 'From' (Nominated Account) and 'To' (PremiumSaver) accounts
  4. Enter the transfer details e.g. date and amount
  5. Confirm the transfer with your Digipass
We recommend setting your Regular Savings Plan for the 25th of the month or earlier to ensure the funds are in your account by the last business day. 
To make deposits from an account that is not your Nominated Account, just use the facilities of the other bank.

Is there a cut off time to increase my balance?

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You need to increase your previous month-end balance by $50 or more by the last business day of the month.

To make sure you don't miss out on premium interest, we recommend setting up a Regular Savings Plan.

To do this:

  1. Log into RaboDirect
  2. Click 'Transfers'
  3. Select the 'From' (Nominated Account) and 'To' (PremiumSaver) accounts
  4. Select regular transfer
  5. Enter the amount, date and frequency
  6. Confirm the transfer.
We recommend setting your RSP for the 25th of the month or earlier if convenient to you, to ensure the funds reach your account in time.

Is there a minimum or maximum balance on PremiumSaver?

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There is no minimum account balance for your PremiumSaver. The maximum account balance is $5,000,000. However, the maximum balance to receive premium interest is $100,000.

Balances between $100,000 and $5,000,000 will earn interest at the RaboSaver rate, providing the monthly balance increase is met. If the monthly balance increase is not met, a minimum interest rate of 1.00% will apply to all funds in the account.

When is interest paid?

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Interest is calculated daily and paid to your PremiumSaver account on the last business day of the month. This means the interest will be included in the opening balance for the following month. 

Keep in mind:

  • Interest payments don’t count towards the  minimum $50 balance monthly increase to receive premium interest.
  • If you withdraw the interest, your balance will decrease and you may miss out on premium interest for that month.

Can I download my transactions?

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Yes. RaboDirect allows you to download an extract file containing all your RaboDirect Savings Account transactions. This file will be downloaded as a CSV file that can be exported to other file and spreadsheet formats.

To do this:

  1. Log into RaboDirect
  2. Click on 'Savings'
  3. Then, click 'Transactions'
  4. Enter your search details, then click 'Search'
  5. At the bottom of the page click 'Download transactions (csv)'
  6. On the next page click 'Download'

When is interest paid on my RaboSaver for Business account?

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Interest is calculated daily and paid to your RaboSaver for Business account after the close of business on the last business day of each month. As such, interest payments will be available to you on the first day of the new month.

Can I have more than one RaboSaver account?

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Yes. You can open up to five PurposeSaver accounts which allow you to separate your savings if you have several goals in mind. You can give them different nicknames such as 'Holiday' or 'House Deposit'.

To open a PurposeSaver account:
  1. Log into RaboDirect
  2. Click 'Savings' then 'Open PurposeSaver account'
  3. Enter a nickname and select the 'Account Owner'
  4. Click 'Confirm'

Note: For legal and tax purposes these accounts will be in the same name as your RaboSaver account. To open an account in a different legal name you will need to complete an application for a new RaboDirect account.

Do clearance periods apply to RaboDirect funds?

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This depends on how the funds are transferred to your account. 

If you transfer funds into your account using the RaboDirect online banking system, a clearance period of three business days will apply. This is because the funds are direct debited from your Nominated Account and we need to ensure that the transaction will not be dishonoured before we make the funds available to you. 

You will start earning interest immediately but you will not be able to transfer the funds or invest in PIE products until the funds have cleared. 

If funds are transferred to your account using the services of another bank there is no clearance period. The funds will be available to use as soon as they reach your account.

When is interest paid on my RaboSaver or PurposeSaver account?

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Interest is calculated daily and paid to your RaboSaver account on the last business day of the month. The payment will be available to you on the first day of the new month.

Can I break my Term Advantage Fund?

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

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.

If 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.

What is the TAF 'Effective rate'?

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

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

For example:
  • A 1 year term deposit earning 3.55% p.a. and taxed at 33% will have an effective (gross) interest rate of 3.55%. 
  • A 1 year Term Advantage Fund investment earning 3.55% p.a. and taxed at 28% will have an effective (gross) interest rate of 3.81% (for a 33% tax payer).

What is the Term Advantage Fund?

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The Term Advantage Fund (TAF) is a managed fund (a pooled investment with many investors). The TAF is specifically designed to provide you with a pre-tax return similar to a traditional term deposit of a similar term. It only invests in deposits with the New Zealand branch of Rabobank Nederland. 

The TAF 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. 


When is interest and tax paid?

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Interest is paid (and PIE tax deducted):
  • on the maturity of the term, AND
  • additionally, if you are invested in the TAF at the end of the tax year (31 March), we will pay out any accrued interest at that point. We are required to do this for all PIE funds so that we may calculate and pay any applicable PIE tax at that stage.

Can I add funds to a Term Deposit?

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Once the term deposit is set up, the details such as the amount, term and interest rate are locked in. You can always open additional term deposits with any balance of $1,000 or more.

Can interest be compounded?

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We do not offer compounding interest payments. Interest is paid back to the RaboDirect savings account that credited the term deposit.

However, if you are investing in a term of 1 year or less you can choose to automatically reinvest the term deposit at maturity and capitalise the interest. The interest will automatically be added to the original sum and incorporated in the new term investment.

How do I change my reinvestment instructions?

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  1. Log into your RaboDirect account
  2. Click ‘Term Deposits’
  3. Click the ‘Actions’ button next to your term deposit
  4. Select ‘Change Reinvestment Option’ 
  5. Choose your new reinvestment instructions
  6. Confirm the change using your Digipass
You can make changes up until the last business day before maturity.

How do I invest over $5,000,000?

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Please call our friendly Customer Contact Centre on 0800 22 44 33, between 8am and 6pm weekdays. They will advise the best available rate and create the term deposit on your behalf.

How many Term Deposits can I have?

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During the initial account opening process you are only able to set up one Term Deposit, however, once you receive your Welcome Pack and PIN you are then able to login and create as many Term Deposits as you wish.

I need access to my funds. Can I break my Term Deposit?

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We may, at our discretion, allow you to break the term deposit and return the funds to your RaboDirect savings account.

Call us on 0800 22 44 33 or send a secure message with details of the term deposit 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 should 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'.  




What if my tax rate changes during the Term Deposit?

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Tax will be deducted at your new tax rate when the next interest payment is made. For example, if you have a 6 month term deposit and change your tax rate part way through, tax will be deducted at your new rate when the interest is paid at maturity. It is not possible to deduct tax at two separate rates for one interest payment.

When is interest paid?

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Interest is calculated daily and paid at maturity for terms of 1-9 months.

For terms of 1-5 years, you can choose to have interest paid monthly, quarterly, six monthly (excluding the 15 month term) or annually.

Interest is paid back to the RaboDirect savings account that originally credited the term deposit. We are not able to pay interest back into the investment or directly to the nominated account.

How do I open a RaboDirect Trust Account?

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The first step is to complete our online application form. Click here to get started.Here’s a few things you will need:
  • Details of the Trust e.g. trust type, address, IRD number and source of funds
  • Another NZ bank account in the name of the trust
  • Details of the person who will act as authorised signatory
  • Driver licence and passport details for the authorised signatory (if possible)
  • The name, date of birth and address of any Ultimate Beneficial Owners (UBO)
A UBO is a person who ultimately benefits from or controls the trust. They are the settlers, trustees and major beneficiaries entitled to 25% or more of the assets of the trust.
After completing the online application:
  • Print, sign and post the application with the supporting documents to Freepost RaboDirect, PO Box 38567, Wellington 6035
  • Make an initial deposit to activate the account
A checklist will be provided at the end of the application that will list the supporting documents. 

How do I transfer money into a RaboDirect Trust account?

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When you open an account with us you will be asked to provide a nominated bank account (an account in the same name at another bank) and accept our online direct debit authority. This allows you to transfer funds into RaboDirect from this nominated bank account, all within our online banking system. 

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

As we do not have branches, it is not possible to make cash or cheque deposits. 
To make a transfer from your Nominated Account:
  1. Log into RaboDirect
  2. Click on 'Transfers'
  3. Select the 'From' and 'To' accounts
  4. Enter the amount
  5. Enter the date or select 'as soon as possible'
  6. Confirm the transfer with your Digipass

How many RaboDirect Savings Accounts can my Trust have?

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You will be able to open up to five PurposeSaver accounts which allow you to separate your savings alongside your RaboSaver account. You can give them different nicknames to meet the needs of your trust e.g. 'Rental income'.

To open a PurposeSaver account:

  1. Log into your RaboDirect account
  2. Click 'Savings' then 'Open PurposeSaver account'
  3. Enter a nickname and select the 'Account Owner'
  4. Click 'Confirm'

Note: For legal and tax purposes these accounts will be in the same name as the RaboSaver account. To open an account in a different legal name you will need to complete an application for a new RaboDirect account.

Trust account holders can also open our 60 day NoticeSaver account. Click here find out more about this product. 

Who can open and manage a Trust Account?

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Any individual authorised to act on behalf of the Trust can open and operate the RaboDirect account. This person will be acting as the authorised signatory on the account. They will be issued the Digipass and will have authority to view the account details, initiate transfers and update account information. 

There can only be one authorised signatory on a Trust account but this person can be changed at any time.