Frequently Asked Questions

If you have invested in Heartland Deposits, CBS Canterbury, Southern Cross , MARAC Deposits or PGG Wrightson Finance Deposits with Heartland Building Society, the following frequently asked questions may be of interest to you.

What type of investments do you offer?

All Heartland Deposits, CBS Canterbury Deposits, Southern Cross Deposits, MARAC Deposits and PGG Wrightson Finance Deposits are issued by Heartland Building Society. Heartland Building Society comprises of the former businesses of MARAC, CBS Canterbury, Southern Cross Building Society and PGG Wrightson Finance.

Click here to view the current Heartland Building Society Investment Statement.

How secure are the investments?

All Heartland Deposits, CBS Canterbury Deposits, Southern Cross Deposits, MARAC Deposits and PGG Wrightson Finance Deposits are unsecured unsubordinated senior debt obligations ranking equally with all other deposits issued under Heartland Building Society's Trust Deed. For a copy of our current Investment Statement, click here or call us on 0800 85 20 20 and we'll send you a copy.

What interest rates do you pay?

The rates vary according to the investment product, the amount invested, the term of the investment and the interest payment frequency. For our current rates, click here. Rates subject to change.

Are there any fees or charges?

None at all.

What is the minimum amount I can invest?

For term deposits the minimum investment amount is $1,000. However a higher minimum may be required in order to be eligible for higher rates or for certain products.

What investment terms are available?

On call or up to five years.

How can I receive my interest?

For all term deposit investment products

Choose the way you want to receive your interest – either:

• direct credit to your bank account; or
• compounded.

Then you choose your interest frequency, which can be either:

• quarterly;
• annually; or
• deferred to maturity.

Can I change the way I receive my interest on a term deposit during the term of my investment?

Yes, just call us on 0800 85 20 20 and we'll sort it out for you.

Is my interest taxed?

Yes, unless you hold an exemption certificate from Inland Revenue.

The current New Zealand tax laws require Heartland Building Society to deduct resident withholding tax (RWT) from your interest before it is credited or paid to you.

Please ensure you show your IRD number and your tax rate (10.5%, 17.5%, 30.0% and 33.0%) on the relevant investment application form. If you don't show your IRD number, we must deduct RWT at 33%.

If you do show your IRD number but do not indicate a RWT deduction rate, then RWT must be deducted at the rate of 33% (30% for companies).

If you are not a New Zealand tax resident, we deduct non-resident withholding tax at either 10% or 15%, depending on where you live. Alternatively, you can ask us to deduct approved issuer levy instead, which is only 2%.

How do I know how much interest I've received?

Each year, before 20 May, we will send you a certificate showing you the amount of interest paid to you or compounded to your investment, and the tax deducted from it.

What happens at the end of the investment term?

We will send you a letter about three weeks before your investment matures to ask whether you want your investment repaid or reinvested. If you'd like to reinvest, we can take your instructions in writing, over the phone (call us on 0800 85 20 20) or by email (invest@heartland.co.nz). If you want it repaid, you need to request this in writing and return your debenture certificate to us (Heartland Building Society, PO Box 9919, Newmarket, Auckland 1149) and we will credit it to your bank account.

Can I cash in my investment early?

The interest rates we offer on investments are based on the expectation that the funds will be with us for the full term. Investors do not have a right to withdraw their investment before maturity, but we understand that people's circumstances change. We will consider early repayment in the situation of financial hardship. We also repay investments when a sole investor passes away. If a joint investor dies we transfer the investments to the surviving investor.

The interest rate may be reduced when an investment is repaid early, to match the term that the funds were actually invested for. For example, a $5,000 term deposit for two years might receive interest at 7.75%. If the investment was repaid after nine months, the rate for that period might be 7.6%, so the interest will be calculated at that rate.

In each case we need a written application giving full details of the situation and the reasons for requesting early repayment. If your request is approved we will repay the funds within five working days.

I am executor for a sole Heartland Building Society investor who has died. What happens to their investment?

You will need to send probate or letters of administration in relation to the deceased investor's will. We will then repay the investment to the estate.

Can I sell my investment?

You may sell your investment privately in minimum amounts of $1,000. Please use the standard form for share transfers, available from us or any sharebroker.

How does the Crown retail deposit scheme affect Heartland Building Society?

Heartland Building Society has a guarantee under a Crown retail deposit guarantee scheme, being a guarantee that expires on 31 December 2011.

Heartland Non-Guaranteed Deposits, CBS Canterbury Non-Guaranteed Deposits, Southern Cross Non-Guaranteed Deposits, MARAC Non-Guaranteed Deposits and PGG Wrightson Finance Non-Guaranteed Deposits offered by Heartland Building Society are not covered by the guarantee given under the Crown retail deposit guarantee scheme. These Deposits are "excluded securities" for the purposes of the Crown guarantee.

Heartland Guaranteed Deposits, CBS Canterbury Guaranteed Deposits, Southern Cross Guaranteed Deposits, MARAC Guaranteed Deposits and PGG Wrightson Finance Guaranteed Deposits offered by Heartland Building Society are covered by the Crown retail deposit guarantee scheme, until the guarantee expires on 31 December 2011, subject to the terms and conditions of the guarantee. Once that guarantee expires, no deposits will have the benefit of the guarantee.

Further information about the Crown guarantee scheme is available on Treasury's website at http://www.treasury.govt.nz

What is our Credit Rating?

Heartland Building Society has a credit rating of BBB- (Outlook Negative) from Standard & Poor's. See Heartland Building Society's Investment Statement or click here for more details about our credit rating.

Heartland Building Society is not a registered bank.

All Call and Term Deposits are made with Heartland Building Society. Minimum investment for a Term Deposit is $1,000. Heartland Building Society has a BBB- (Outlook Negative) credit rating from Standard & Poor's. See Heartland Building Society's Investment Statement or click here for more details about our credit rating. Our current Investment Statement can be obtained from our Investment Team on 0800 26 27 22 or by clicking here.