Term Deposit Terms and Conditions

The New Zealand Employees Credit Union Terms and Conditions for Term Deposit are detailed below.

Issuer

New Zealand Employees Credit Union.

Term deposit description

You invest money with us for a set period of time, called the “term” and we agree to pay you a certain rate of interest on that money for that term. The money invested will then either be repaid to you or reinvested at the end of the term.

The interest rate we pay you (before tax) and the way we pay interest depends on the amount you invest and the term you choose. This information is available on our website or at our branch.

Fees and charges

You do not have to pay any fees to invest in a term deposit.

If we agree to an early withdrawal of your term deposit the interest rate payable on your investment may be reduced. We’ll tell you the changed rate of interest (if any) when you ask to withdraw your money early and we accept.

Interest and how it is paid

Interest starts to accrue from the date your money is put into a term deposit.

Depending on the type of term deposit you have, you can choose to have interest paid:

• At the end of your term or
• At regular specified periods throughout the term such as monthly or quarterly (conditions apply)

If you choose to have your interest paid quarterly, your interest may be “compounded” (which means we’ll add it to your term deposit, giving you a new total each time the interest is paid).

Early withdrawals

If we agree to an early withdrawal penalties may apply, the money you withdraw won’t get as much interest as if you left it until maturity. We’ll let you know what the reduced interest rate is at the time you request an early withdrawal.

If you are  only withdrawing some of the money, the money that is left in the term deposit will continue to earn the original interest rate, as long as the balance remaining meets the minimum term deposit amount of the interest rate tier it was originally deposited for. If not, the interest rate will change to the rate of interest applicable for the new tier from when the term deposit was opened.

Taxation

Unless you give us a copy of an IRD exemption certificate, your interest will be paid to you less any Resident Withholding Tax we need to pay to Inland Revenue on your behalf. You need to keep us up to date with any changes to your tax rate.

Getting back your investment

We will advise you of your options prior to maturity, including reinvestment for a further term or transfer it to any New Zealand bank account

Changes to your investment

You can contact us at any time to change your term deposit maturity instruction and the bank account we pay interest to.

Additional information

Our interest rates and minimum term deposit amounts for new term deposits, including reinvestments, may change at any time without notice.