Which New Zealand Savings Account Offers the Highest Interest in 2025? Discover How to Maximize Your Returns While Keeping Your Money Accessible.

Savings Account with Accessibility and Competitive Interest: Squirrel On-Call Account at 3.25% p.a.

As of April 2025, the Squirrel On-Call Account offers an interest rate of 3.25% per annum for savers who prefer daily access to their funds without penalties or fees. This account provides an example of on-call savings products with competitive rates and no restrictions.

Key features of the Squirrel On-Call Account include:

• No minimum balance requirements.
• No transaction fees or withdrawal penalties.
• Money transfers back to a linked bank account typically occur within approximately 2 hours during business hours.
• Funds are held with a Standard & Poor’s AA-rated major registered New Zealand bank.
• Online setup links directly to verified bank accounts to facilitate money movement.

This account may suit savers seeking flexibility while earning interest at rates higher than some standard accessible savings accounts.

Notice Saver Accounts with Higher Interest for Planned Withdrawals

Notice Saver accounts generally offer higher interest rates than immediate access savings but require advance notification before withdrawals.

Kiwibank, Heartland Bank, Rabobank, and Westpac currently provide Notice Saver accounts with interest rates in the range of 2.80% to 3.75% p.a. These accounts typically require:

• Notice of withdrawal given 32 to 90 days in advance.
• Interest rates that vary depending on notice period and provider.

Notice Saver accounts may be appropriate for savers who can plan withdrawals ahead and prefer potentially higher interest rates versus instant access.

Term Deposits for Fixed Terms and Fixed Interest Rates up to 3.75%

Term deposits involve locking funds for a set period, with interest rates depending on the term length. Across many New Zealand banks, rates for 30 to 90 day terms currently range from approximately 2.25% to 3.75% p.a.

Characteristics include:

• Locked funds during the term, with penalties for early withdrawal.
• Fixed interest rates providing predictable returns over the term.
• Potential for higher rates with longer fixed terms.

Term deposits may be suitable for savers prioritizing certainty of returns and who do not require immediate access to funds.

Considerations When Choosing a Savings Option

Selecting a savings account typically involves balancing access to funds with interest earnings:

• Accounts with immediate access usually offer lower interest rates, with some exceptions such as the Squirrel On-Call Account.
• Notice saver accounts and term deposits generally provide higher rates but require advance planning or commitment.
• Some accounts include conditions (e.g., maintaining minimum balances or no withdrawals) to qualify for higher interest rates; failure to meet these may reduce earnings.

Assessing your need for liquidity and comfort with account conditions is recommended when selecting a product.

Investment Products Offering Higher Potential Returns with Additional Risk

Squirrel provides investment options such as residential mortgage funds and term investments with potential returns up to 7.75% p.a. These products involve more risk and longer commitments than traditional savings accounts and are not equivalent to guaranteed savings products.

These investment opportunities are suited for individuals willing to consider managed funds and risk exposure, ideally with guidance from a qualified financial advisor.

Additional Notes on Rates and Taxation

• Interest rates presented are gross rates before resident withholding tax (RWT) in New Zealand; net returns depend on individual tax circumstances.
• Interest rates can change over time due to market or policy adjustments.
• It is recommended to verify current rates directly with banks or providers prior to making financial decisions.

Overview of Savings Account Options in New Zealand 2025

• For accessible savings with no penalty on withdrawals, the Squirrel On-Call Account offers an example rate of around 3.25% p.a.
• Notice Saver accounts with planned withdrawal notice periods are available at rates up to approximately 3.75% p.a.
• Term deposits for 30 to 90 days show rates in the 2.25% to 3.75% p.a. range.
• Higher return investment funds offered by Squirrel involve greater risk and commitment.

Choosing the right option involves considering liquidity preferences, ability to meet account terms, and risk tolerance.

Sources

• Ranking New Zealand's best and worst savings accounts | Squirrel
• High Interest On-Call Account | Squirrel

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