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Compare the Best Notice Saver Accounts

Earn around 5% p.a. with top Notice Saver accounts from trusted banks. MoneyHub publishes the top deals, tips, PIE vs non-PIE considerations, and FAQs.
Updated 9 December 2024 
A Notice Saver has key features:
  • Notice requirement: A Notice Saver account is a type of savings account where you must notify the bank a set number of days before making a withdrawal. Common notice periods are 30, 60, or 90 days.
  • Interest Rates: Typically offers higher interest rates than regular savings accounts due to the notice period requirement.
  • Tax efficiency: Notice Saver accounts can be structured as PIE (Portfolio Investment Entity), potentially offering tax advantages for higher-rate taxpayers at the 33% and 39% brackets.

Summary
  • Notice Saver account interest rates remain high, and they offer interest rates slightly lower than term deposits with shorter terms.
  • Notice Saver accounts require you to give notice before making a withdrawal, typically ranging from 30 to 90 days. This means that if you invest into a Notice Saver account with a 90 day notice period, you'll have to give the bank 90 days notice (done online) before your money is available.
  • Four banks currently offer Notice Saver accounts - Heartland and Rabobank (non PIE accounts) and Kiwibank and Westpac (PIE accounts). Understanding the differences between PIE and non-PIE accounts is crucial for managing your tax liabilities effectively, especially for higher-income earners, and we address this below with a calculation you can use to make the right choice.
  • In both PIE and non-PIE Notice Saver accounts, interest is calculated daily on the balance in the account, which helps maximise the interest earned. However, this interest is not compounded daily or re-invested into the Notice Saver balance immediately. Instead, it is either:
  1. Added Monthly: At the end of each month, the interest calculated daily is totalled and added to the Notice Saver account balance, where it will then begin to earn interest in the following month. This monthly addition effectively compounds the interest, but not as frequently as other investment types.
  2. Paid Out: Alternatively, some Notice Saver accounts offer the option to have the interest paid out into a standard everyday account. This option is useful for those using their interest earnings as a supplementary income. In this case, the interest does not compound within the Notice Saver account since it is removed monthly.
To help you decide what's right for you, our guide covers:
  1. Top Notice Saver Accounts
  2. PIE vs Non-PIE Notice Saver Accounts - What You Need to Know​
  3. Frequently Asked Questions
  4. Notice Saver Account Pros and Cons

Related resources:
  • Want to see the pre-tax returns of Notice Saver account interest? Visit our Savings Calculator
  • Keep in mind that banks possess varying credit ratings, which serve as indicators of the safety of your Notice Saver account investment. For more information, refer to our comprehensive Bank Credit Ratings guide.

How does a Notice Saver account differ to a call account or a savings account?

A Notice Saver is different to Call and Savings accounts:
  • Accessibility: Unlike call and savings accounts, which allow immediate access to funds, Notice Saver accounts require advance notice before withdrawals, limiting immediate liquidity.
  • Interest flexibility: Call and savings accounts often have variable interest rates that can change daily, while Notice Saver accounts usually offer fixed rates for the duration of the notice period.
  • Purpose of use: Call and savings accounts are ideal for managing daily cash flow and emergencies, whereas Notice Saver accounts are better for medium-term savings where funds are not needed immediately.
Warning - Investment Scams
  • We are aware New Zealanders are being targeted by scammers hoping to get their hands on money otherwise destined for legitimate call accounts, savings accounts or term deposits.
  • We believe the scams start as adverts on third-party websites (e.g. not MoneyHub) and entice people to enter their contact details when looking for a call account or other savings product. Then, phone calls are made to lure the money to fake New Zealand and/or overseas-based companies promising returns above those you'll receive from any New Zealand term deposit or similar product.
  • MoneyHub Founder Christopher Walsh explains this problem in a video that lists what you can do to avoid scams altogether.
  • Remember, if it sounds too good to be true, or you have a funny feeling or anything else, do not proceed. There are too many scams out there to risk it, as you'll see in the video:

Top Notice Saver Accounts Available Right Now

We highlight the best deals available below. It's important to note that if you fall into the 33% or 39% tax brackets, opting for a PIE Notice Saver could provide you with a more favourable net interest rate due to the tax efficiencies it offers - we address this issue in the section below the rates.

Heartland Bank - 4.50% p.a. (90 days notice) or 4.25% p.a. (32 days notice)

​Interest ​Rate: 4.50% p.a. (90 days notice) or 4.25% p.a. (32 days notice)
Minimum balance: None
Balance Limit: $5m (on all Heartland Notice Saver account balances in total)
PIE? No - this means if you're on a 33% or 39% tax rate, Kiwibank and Westpac may be more competitive with net interest earned
How to open: Apply via Heartland's website

Kiwibank - 4.10% p.a. (90 days notice) or 3.55% p.a. (32 days notice)

Interest ​Rate: 4.10% p.a. (90 days notice) or 3.55% p.a. (32 days notice)
Minimum balance: None
Balance Limit: None
PIE? Yes - Kiwibank Notice Saver is a PIE investment, which benefits anyone earning at the 33% or 39% tax rate with a capped 28% tax rate on interest earned.
How to open: Apply via Kiwibank's website

Westpac - 3.75% p.a. (32 days notice)

Interest ​Rate: 3.75% p.a. (32 days notice)​
Minimum balance: None
Balance Limit: $10m
PIE? Yes - Westpac Notice Saver is a PIE investment, which benefits anyone earning at the 33% or 39% tax rate with a capped 28% tax rate on interest earned.
How to open: Apply via Westpac's website

Rabobank - 4.15% p.a. (60 days notice)

Interest ​Rate: 4.15% p.a. (60 days notice) 
Minimum balance: None
Balance Limit: $5m
PIE? No - this means if you're on a 33% or 39% tax rate, Kiwibank and Westpac ​may be more competitive with net interest earned
How to open: Apply via Rabobank's website
Important: Interest rates are subject to change without notice - please confirm the latest interest rate and interest payment schedule before signing up for any Notice Saver account.

Our Top-Rated Savings Account With Day-to-Day Flexibility

​Best Account for Wealth Creation and Flexibility:
  • ​Savvy is a novel approach to managing your funds, blending everyday transaction ease with impressive returns. Unlike traditional bank accounts, which offer zero or low interest rates, Savvy isn't just a place to store your money; it's an investment in the Booster Savvy Fund, managed by Booster.
  • Booster is not a bank. This means a Savvy account is not a bank account. It does, however, provide transactional account functionality.
 
​What sets Savvy apart?
  1. High Returns: Enjoy a significant 4.75% p.a. return, reviewed monthly, with the potential for additional quarterly bonus returns.
  2. Instant Access: Withdraw your funds anytime, anywhere, with no penalty to the return you earn - a flexibility rare in the world of transaction accounts.
  3. Mastercard Debit Card: Thanks to the convenient Booster Savvy Card, your funds are always at your fingertips, usable throughout New Zealand and around the world wherever Mastercard is accepted.
  4. Payments: With Savvy you can make and receive payments to New Zealand bank accounts, set up automatic payments and use your card to pay subscriptions like Netflix or SkySport. Savvy does not allow Direct Debits however.
  5. Tax Efficiency: Structured as a PIE, Savvy is taxed at your PIR, capped at 28%, optimising your returns.
  6. Organise Your Funds: Savvy lets you divide your money into multiple 'stacks', automating your financial management plus it has savings tools and spending insights
  7. Digital First: Embrace the future with an app-based investment experience, available on both the App Store and Google Play.
  8. No Minimum Balance: Every cent in your account earns interest.
  9. 24/7 Access: The digital platform ensures that your funds are accessible anytime through the app and debit card, usable on the Mastercard network, EFTPOS and across ATMs.

Savvy arguably redefines how we think about money management, merging the convenience of a debit card with the benefits of an investment fund, all while offering impressive returns. It's a forward-thinking solution for those who want their money to work harder for them without sacrificing accessibility or ease of use.​

More details: Our Savvy Review explains the product in detail, as does the Savvy website.

PIE vs Non-PIE Notice Saver Accounts - What You Need to Know

As a background, the Notice Saver accounts offered by Kiwibank and Westpac are PIE investments, whereas Heartland Bank and Rabobank offer non-PIE accounts. Both behave the same, but the net tax you'll earn is different if you're a 33% or 39% taxpayer. 

As a recap:
  • PIE Accounts: A Portfolio Investment Entity (PIE) account offers tax benefits to higher-rate taxpayers in New Zealand. Taxes on interest earned are capped at 28%, even if the individual's personal tax rate is higher (33% or 39%).
  • Non-PIE Accounts: Interest earned in non-PIE accounts is taxed at the individual's marginal tax rate, which can be up to 39%. This means higher-rate taxpayers could pay more tax on interest earnings in non-PIE accounts than PIE accounts.

Demonstrating the difference with an example:
In this example, you invest $10,000 in a PIE and a non-PIE Notice Saver account, offering an annual interest rate of 5.50%. You leave it there for 12 months. 

1. Interest Calculation in a PIE Account (Tax Rate Capped at 28%):
  • Gross interest per year = $10,000 x 5.50% = $550
  • Tax at 28% = $550 x 28% = $154
  • Net interest after tax = $550 - $154 = $396

2. Interest Calculation in a Non-PIE Account (Tax Rate at 39%):
  • Gross interest per year = $10,000 x 5.50% = $550
  • Tax at 39% = $550 x 39% = $214.50
  • Net interest after tax = $550 - $214.50 = $335.50

3. Interest Calculation in a Non-PIE Account (Tax Rate at 33%):
  • Gross interest per year = $10,000 x 5.50% = $550
  • Tax at 33% = $550 x 33% = $181.50
  • Net interest after tax = $550 - $181.50 = $368.50

Next Steps: If you are a 33% or 39% taxpayer, we suggest following a similar calculation using the interest rates from the banks listed above and the amount you want to invest - 28% is always the tax rate for a PIE Notice Saver account. ​

Notice Saver Account Frequently Asked Questions

While Notice Saver accounts are fairly simple, there are a few important facts to be aware of. We answer the most common questions below:

How do I pick the best Notice Saver account?

The best Notice Saver account is likely going to have the highest interest rate and the shortest notice period. For example, 4.50% with 32 days notice is better than 4.25% with 90 days notice.

How can I check the balance?

Notice Saver accounts can be viewed online or via an app to help manage your money. All Notice Saver​ accounts listed above offer this.

Who offers Notice Saver accounts?

Only a small selection of New Zealand banks offer Notice Saver accounts - Heartland and Rabobank (non PIE accounts) and Kiwibank and Westpac (PIE accounts). ​

Can I open a joint Notice Saver account?

It depends on the bank, but in most cases the answer will be no. However, certain high-interest savings accounts offer joint control.

Is a Notice Saver account safe? Can I lose money?

While no investment is 100% safe, Notice Saver accounts fall into the category of ‘low risk’. They also offer a guaranteed return – the interest rate is floating but it's above 0% and banks don't move their rates around too often. This means over one year you'll likely see a few interest rate changes (up and down) but your capital (e..g investment) will remain stable.

What are the tax implications of interest earned on Notice Saver accounts?

Per the NZ government, when you open a Notice Saver account, you need to tell your provider (i.e. the bank):
  1. Your IRD number
  2. The tax rate you should pay, based on your income.
The interest you earn will be taxed at your tax rate. For example, if you earned $100 in interest and your tax rate is 17.50%, you’ll pay $17.50 in tax and keep $82.50.

If you're a top-rate taxpayer (e.g. 33% or 39%), Kiwibank and Westpac offer PIE Notice Saver accounts, which means your interest will be taxed at 28%, meaning you'll earn more net interest.

How do I open a Notice Saver account?

The most convenient way to open a Notice Saver account is online through the bank's website or in person at a branch. You must provide essential documentation, such as a valid ID and proof of address, to verify your identity and the origin of your funds. 

After your account is approved, you can choose the amount you wish to deposit into the Notice Saver. This sum will then be secured until you notify the bank of your intent to withdraw, required per your account's specs, which typically range from 30 to 90 days.

Notice Saver Accounts - Pros and Cons

Pros:
  • Secure investment: Like call accounts, Notice Saver accounts are low-risk. Your money is safe when deposited in a New Zealand bank, and you are guaranteed to earn the interest rate advertised.
  • No account fees: There are no charges or fees for opening or maintaining a Notice Saver account, which helps maximise your savings.
  • Promotes saving and avoids dipping into funds: Notice Saver accounts reward savers with higher interest rates (compared to a call account, given they need to give notice before making withdrawals. This notice period prevents the ability to withdraw without any constraints, limiting the chances of impulsive spending.
  • Planned accessibility: While you don't have any time access to your money, you can plan withdrawals according to the notice period (e.g., 30, 60, or 90 days). If you can work with this limitation, Notice Saver accounts reward you with higher interest rates than other savings accounts.
  • Earn interest on interest: Interest accrues based on the average daily balance and, in many cases, is paid monthly. This helps you to continuously grow your savings or get interest paid into your everyday account every month. 
Cons:
  • Limited access to your money: Unlike call accounts, which offer instant access to funds, Notice Saver accounts require a specified notice period before withdrawing your money. If you need your money suddenly, you'll pay a penalty to withdraw the funds.
  • Lower interest rates than term deposits: The rates on Notice Saver accounts are usually lower than those available with term deposits, especially for longer notice periods, and they can drop within your notice period.
  • Interest rate fluctuations: The interest rates on Notice Saver accounts can change at any time, and your bank will email you when it adjusts the interest rates.
  • Penalties for early withdrawal: While Notice Saver accounts encourage saving, the penalties associated with early withdrawal can be a significant downside if the funds are needed unexpectedly. For this reason, a Notice Saver isn't a suitable account for emergency funds. 

Our view: We are fans of Notice Saver accounts. They offer flexibility and a decent interest rate, with the benefit of knowing your money is off-limits for at least 30 days (or whatever the notice period of the account is). 


Notice Saver accounts are arguably suited to individuals who can plan their financial needs and are comfortable waiting for a set period before accessing their funds.
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