10.5% (Income up to $14,000)
17.5% (Income $14,001 – $48,000)
30.0% (Income $48,001 – $70,000)
33.0% (Income $70,001 – $180,000)
39.0% (Income over $180,000)
Gross Interest Earned:
RWT Deduction ():
Net Interest (After Tax):
Total Maturity Value:
*Calculation assumes interest rates remain fixed for the term. Actual returns may vary slightly due to day counts (365/366 days). This is an estimation tool and not financial advice.
Understanding ANZ Term Deposit Rates and Returns in NZ
Investing in term deposits is a popular way for New Zealanders to secure a guaranteed return on their savings. ANZ, as one of New Zealand's largest banks, offers various term deposit options ranging from 30 days to 5 years. This ANZ Term Deposit Rates NZ Calculator helps you estimate your potential earnings by factoring in your principal, the interest rate, and your Resident Withholding Tax (RWT) obligations.
How Term Deposit Interest is Calculated in New Zealand
The calculation of your return depends heavily on three factors: the principal amount, the interest rate per annum, and the frequency of interest payments.
Formula for Interest at Maturity:
Interest = Principal × (Rate / 100) × (Days / 365)
While interest rates are quoted "per annum" (yearly), if you invest for 6 months, you will receive approximately half the annual rate. Our calculator automatically adjusts the "per annum" rate to match the specific duration of your investment term.
Resident Withholding Tax (RWT) Rates
In New Zealand, interest earned on bank deposits is considered income and is subject to tax. This is deducted at the source before the money hits your account. It is crucial to select the correct RWT rate to avoid a tax bill at the end of the financial year. The current rates generally align with your income tax bracket:
10.5%: Taxable income up to $14,000.
17.5%: Taxable income between $14,001 and $48,000.
30.0%: Taxable income between $48,001 and $70,000.
33.0%: Taxable income between $70,001 and $180,000.
39.0%: Taxable income over $180,000.
Compounding vs. Maturity
For terms shorter than one year, ANZ typically pays interest at maturity (the end of the term). However, for longer terms (e.g., 2 to 5 years), you may have the option to have interest paid monthly, quarterly, or annually.
At Maturity: You receive your principal plus all interest in one lump sum at the end.
Compounding: If interest is added back to your principal (compounded), you earn interest on your interest, slightly increasing your yield over long periods.
Periodic Payments: If you choose to have interest paid out to a separate account (e.g., for income), you will not benefit from compounding, but you gain cash flow.
Optimizing Your Investment
To get the most out of ANZ term deposit rates, consider "laddering" your deposits. This involves splitting your lump sum into multiple deposits with different maturity dates. This strategy allows you to take advantage of potentially rising rates while maintaining access to portions of your cash at regular intervals.
function calculateANZReturns() {
// Get input values
var depositAmount = parseFloat(document.getElementById('depositAmount').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var termMonths = parseFloat(document.getElementById('termMonths').value);
var paymentFrequency = document.getElementById('paymentFrequency').value;
var taxRate = parseFloat(document.getElementById('taxRate').value);
// Validation
if (isNaN(depositAmount) || depositAmount <= 0) {
alert("Please enter a valid deposit amount.");
return;
}
if (isNaN(interestRate) || interestRate < 0) {
alert("Please enter a valid interest rate.");
return;
}
if (isNaN(termMonths) || termMonths <= 0) {
alert("Please enter a valid term in months.");
return;
}
// Calculation Logic
var rateDecimal = interestRate / 100;
var timeInYears = termMonths / 12;
var grossInterest = 0;
// Frequency logic
if (paymentFrequency === 'maturity') {
// Simple Interest formula for Maturity (Standard NZ calculation for TD)
// Interest = P * R * T
grossInterest = depositAmount * rateDecimal * timeInYears;
} else {
// Compound Interest logic if user selects compounding frequencies
// A = P(1 + r/n)^(nt)
var n = 1; // Default annually
if (paymentFrequency === 'monthly') n = 12;
if (paymentFrequency === 'quarterly') n = 4;
// Total Amount including Principal
var totalCompounded = depositAmount * Math.pow((1 + (rateDecimal / n)), (n * timeInYears));
grossInterest = totalCompounded – depositAmount;
}
// Tax Calculations
var taxDeduction = grossInterest * (taxRate / 100);
var netInterest = grossInterest – taxDeduction;
var totalMaturity = depositAmount + netInterest;
// Formatting currency
var formatter = new Intl.NumberFormat('en-NZ', {
style: 'currency',
currency: 'NZD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
// Display Results
document.getElementById('resGross').innerHTML = formatter.format(grossInterest);
document.getElementById('resTax').innerHTML = formatter.format(taxDeduction);
document.getElementById('resNet').innerHTML = formatter.format(netInterest);
document.getElementById('resTotal').innerHTML = formatter.format(totalMaturity);
document.getElementById('resTaxRateDisplay').innerText = taxRate + "%";
// Show result area
document.getElementById('resultArea').style.display = 'block';
}