The investment fund is administered by SBS Bank's managed funds subsidiary, Funds Administration New Zealand Limited (FANZ).
FANZ executive director Graham Duston said being able to offer a PIE term deposit was the "perfect complement" to the existing cash PIE call account and both accounts invested in securities issued by SBS Bank.
"The great news about our SBS Lifestages Deposit Portfolio is that the funds are just as easy to set up as term and call deposits. The portfolio also boasts no management fees."
SBS's first PIE is offering 5% at maturity on terms to October 31, 2010.
Duston says the potential for better return because tax is capped at 30%, even for those who would normally pay tax at 33% or 38% on their saving or investment earnings.
"The first PIE term investment SBS Bank is offering is 5% at maturity on terms to 31 October 2010, with a minimum deposit of $10,000.
Including tax benefits, the equivalent gross return for 33% tax payers is 5.22% and for 38% tax payers it is 5.65%.
See how the SBS PIE compares in our comprehensive table of PIE funds on offer here
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