If you have invested in Heartland Deposits or PGG Wrightson Finance Deposits (Deposits) with Heartland Bank, the following frequently asked questions may be of interest to you.**
- What type of investments do you offer?
Everyone has different investment goals, and that’s why Heartland Bank offers a wide range of debt securities (i.e. Deposits) for investors. All Deposits are issued by Heartland Bank Limited.
The Deposits offered fall into three broad classes being term accounts, savings accounts and transactional accounts. There is something for everyone – whether you are an individual, trust or business.
Heartland Bank's Transactional Accounts have an extensive range of access options including in-branch transactions, debit cards, telephone and internet banking.
Heartland Bank's Savings Accounts provide competitive rates of return and the flexibility of on-call access to your funds. Withdrawals from Savings Optimiser Accounts are subject to a minimum notice period of 30 days. Withdrawals without the required notice may be approved at Heartland Bank's discretion, and if approved a fee will be payable of 3% of the total funds withdrawn (subject to a minimum fee of $30 and a maximum fee of $150). For a copy of Heartland Bank's Disclosure Statement and Savings Accounts Fact Sheet click here.
Heartland Bank's Term Deposits offer a fixed rate of return for a fixed term where interest is paid to you, or added to the balance (usually monthly, quarterly, six-monthly, annually or at maturity). For a copy of Heartland Bank's Disclosure Statement and Term Deposits Fact Sheet click here.
- How secure are the investments?
- All Deposits are direct unsecured unsubordinated debt obligations of Heartland Bank ranking equally with all other deposits issued by Heartland Bank. For a copy of our current Disclosure Statement, Term Deposits Investment Statement or Savings Optimiser Accounts Investment Statement, click here or call us on 0800 85 20 20 and we’ll send you a copy of the requested document(s).
- 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?
No entry charges, administration or management charges, expenses or overhead charges, GST, transfer charges, alteration charges, or any other charges are payable in respect of an investment in Deposits, except:
Fees are payable to Heartland Bank for international transfers, same day cleared payments and passing on charges incurred on behalf of an investor and if the investment is withdrawn before maturity.
Transactional and Savings Accounts
Fees may be payable to Heartland Bank for transactions, services and other activity on transactional and savings accounts, and those fees are subject to change from time to time. You can view all current fees in Heartland Bank's Fee Guide, available by clicking here.
All fees and charges, and Heartland Bank's Fee Guide, are subject to change without notice.
- What is the minimum amount I can invest?
- You can choose the amount you wish to invest, subject only to the current minimum starting amount of $1,000 for Term Deposits. There is no minimum for Savings Accounts or Transactional Accounts. For a copy of Heartland Bank's Disclosure Statement, Term Deposits Investment Statement and Savings Optimiser Accounts Investment Statement click here.
- What investment terms are available?
Heartland Bank generally offers a range of investment terms from On Call to 5 years, or as otherwise agreed between you and Heartland Bank.
- How can I receive my interest?
Interest is paid to you, or added to the balance, on the basis set out on your application form, or as otherwise agreed between you and Heartland Bank (usually monthly, quarterly, six-monthly, annually or at maturity).
Savings and Transactional Accounts
Interest is added to the account balance on a monthly basis.
- Can I change the way I receive my interest on a Term Deposit during the term of my investment?
- You may request a change to the terms of your Term Deposit, such as a different interest payment option, and Heartland Bank may agree to the requested change but is not obliged to do so.
- Is my interest taxed?
Yes, unless you hold an exemption certificate from Inland Revenue.
The current New Zealand tax laws require Heartland Bank 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% or 33.0%) on the relevant investment application form. If you don’t show your IRD number, we must deduct RWT at 33.0%.
If you do show your IRD number but do not indicate a RWT deduction rate, then RWT must be deducted at the rate of 33.0% (28.0% for companies).
If you are not a New Zealand tax resident, we deduct non-resident withholding tax at either 10.0% or 15.0%, depending on where you live. Alternatively, you can ask us to deduct on approved issuer levy instead, which is currently only 2.0%.
- 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?
Prior to the maturity date, Heartland Bank will send you a notice to tell you that your investment is about to mature. You can then elect to:
(a) reinvest your money with Heartland Bank, either in the same account or in a different account; or
(b) withdraw your investment either in cash, by transfer to a bank account nominated by you or by cheque.
Unless you instruct Heartland Bank otherwise, on maturity your balance will be automatically reinvested for the same investment term. Alternatively Heartland Bank may advise you that your matured investment will, in the absence of maturity instructions, be placed on call at the then “past maturity account rate” detailed in its then current rate card, which investors can obtain by calling 0800 85 20 20.
- Can I cash in my investment early?
Heartland Term Deposits
Investors do not have a right to withdraw their investment before maturity, but we understand that people’s circumstances do change. We will consider, but are not obliged to accept, written requests for early repayment in certain circumstances such as (and without limitation), the death of an investor or unforeseen financial hardship. See our Term Deposits Investment Statement for more details.
Heartland Savings Optimiser
Withdrawals from Heartland Savings Optimiser are subject to a minimum notice period. For withdrawals without the required notice, a fee will be payable of 3% of the total funds withdrawn subject to a minimum fee of $30 and a maximum fee of $150. See our Savings Optimiser Accounts Investment Statement for more details.
- Can I sell my investment?
No Term Deposit or Savings Optimiser Account may be transferred or sold without the prior written consent of Heartland Bank. If consent is given then the sale or transfer must be made using the standard form for security transfers (in minimum amounts of $1,000 for Term Deposits), which must be executed and delivered to Heartland Bank. Heartland Bank will consider, but is not obliged to accept, written requests for transfer.
** All Call and Term Deposits are made with Heartland Bank. Minimum investment for a Term Deposit is $1,000. See Heartland Bank’s Disclosure Statement and Investment Statements by clicking here.