The bank has put all its term deposits into PIE options and also kept as many of the product features as possible such as internet banking.
This varies from other provides. Most have just a cash offer, and a couple including, UDC, ANZ and Kiwibank have several term offers.
ASB Bank’s head of marketing Jonathan Symons says the only terms which are not in a PIE format are the very short duration ones.
He says in order to keep things simple the PIE funds have the same rates as the term deposits, the difference is for 33% and 39% taxpayers who get an additional tax benefit under the PIE rules.
Symonds says some of the cash PIEs in the market are more like managed funds, and have fees attached to them. ASB’s approach was to make “simple bank products.” While they are simple in concept, there “were hard to enact.”
Another difference between ASB’s PIEs and others is that deposits aren’t subject to specific start dates.
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