Are Savings Accounts taxed?

Everything you need to know about how tax is paid on savings accounts

The money in your savings account is not taxed.

However, the interest earned on your savings is taxed.

Interest earned is considered a type of income. That means all New Zealand citizens and residents with interest earnings are required to pay Resident Withholding Tax (RWT). To ensure you’re taxed at the right rate, you need to provide your bank or credit union with:

  • Your IRD number
  • Your tax rate (based on your income)

If you have a joint savings account, your RWT rate should be based on the highest earner.

For more information on Resident Withholding Tax (RWT) please visit

How do I pay tax on the interest I've earned?

Your financial provider will automatically deduct RWT from the interest you have earned at least once a year.

They will then pay Inland Revenue on your behalf, and give you a statement of the tax you have paid for that year. 

Looking for a high-interest savings account?

Our CANSTAR 5-Star award winning Online Saver is considered one of New Zealand’s best savings accounts.^ Whatever you’re saving for, we can help you reach your financial goals. To find out more about our savings accounts and term deposits call 0800 229 943 to speak with our friendly team today.