Rapid Savings a/c-Term Deposit

I am trying “To be Good with Money” by investing $10,000 from my Rapid Saving a/c in a 5 year term deposit but I am going to be penalised by the bank;  namely, the BNZ; for doing what it says. “Be Good with Money”.

How you may ask:

Well now; Firstly: I am going to loose my bonus interest because no way can I save another $10,000 in that a/c in a mth.

Secondly: If I have to make another withdrawal, it means I will be penalised again. $5.00

Remember this $10,000 is not leaving the bank. In fact the bank will have full use of it for the next 5 yrs, still it is going to penalise me by being good with money! Now, is that fair? Someone hasn’t thought it through.

Hi @kestrel49,

I had a chat to one of our Banking Advisors about this, below is what he had to say, hope this helps?


'If the customer times their new term deposit to start at the very beginning of a calendar month, just after their bonus interest has been paid into their rapidsave, and they transfer the full balance of their rapidsave into the TD then they will minimise the amount of bonus interest they miss out on.

We only charge a $5 fee on subsequent transactions, so if they transfer the full balance into a term deposit they won’t pay any fees.

I get the impression that their Rapidsave balance might be higher than $10k though, in which case the issue of lost bonus interest for the whole month is a valid one, the key here is coming up with the best way to deal with the remaining balance, in which case calling us in direct or visiting a Banking Advisor in store to have a conversation around what to do with the rest of the funds is highly advisable!’

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Good Morning Eric.​

Thank you for your advice. What I was planning to do is to put 10k in a 5 yr term deposit with the interest paid 1/4erly back into my Rapid saver. The balance left in the Rapid saver I was going to add to by normal savings + the interest from the term deposit & use it for overseas trip(s). I suppose I want my cake & eat it too. But it seemed unfair that the BNZ is going to penalise me, (& others), even when the funds are still with the bank. I definitely will see a branch banking advisor to discuss the remaining funds.

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I learnt something interesting this week… a withdrawal from a Rapid Save where the money is going onto a term deposit is not counted as a withdrawal when BNZ calculate whether to charge a fee. So, after having withdrawn for the term deposit you’d still get one more free withdrawal… that doesn’t solve the bonus interest thing, other than to try and do it as close to the beginning of the month as possible…hope that helps…every little bit helps


Good afternoon Meagan.

That is good news. I have an appointment with the BNZ this Thursday morning. Everybody has been that helpful. Apparently the trick is to open a term deposit just after the interest has been paid out. But that again does not help the problem of Nov’s interest; but that is neither here or there. Once again thank you.