Kiwi Bonds

Kiwi Bonds are similar to a term deposit in that they offer a fixed rate of interest over a given timeframe, either six months, one year or two years. The minimum investment amount is $1,000. The maximum investment is $500,000.

The interest rates offered are usually lower than those offered by banks because of the greater level of security associated with a government investment (AAA credit rating by S&P). The interest rates are set periodically by the Treasurer of the New Zealand Debt Management Office, based on the moving averages of domestic wholesale interest rates (i.e., interest rates for government bonds and Treasury bills).

Current interest rates for Kiwi Bonds (last updated 1 February 2008):

Kiwi Bonds are available only to New Zealand residents. Anyone resident outside New Zealand, even if they hold New Zealand citizenship, is ineligible to invest in Kiwi Bonds. This is due to the requirements of securities regulations in offshore jurisdictions.

What Fees will I pay when investing in Kiwi Bonds?

There are no fees payable to invest in NZ Government Kiwi Bonds. Capricorn Financial Services will receive a commission from the Government for our role in facilitating the investment in Kiwi Bonds. For more information please refer to the Capricorn Financial Services Disclosure Document.

How do I invest in Kiwi Bonds?