Frequently Asked Questions

The CashPlus Fund invests in a broad range of cash and cash equivalents, these include short-dated (less than one year) fixed interest instruments such as bonds and commercial paper.  

Term deposits are deposits held with a bank that typically pay interest only at the end of the deposit period.  

One advantage of the CashPlus Fund over term deposits is that Managed Funds investors (and KiwiSaver investors who are eligible to withdraw their funds) can access their investments at any time - without having to wait until a bank deposit matures.  

Additionally, because the CashPlus Fund is a PIE Fund, tax is automatically deducted and is capped at 28% (the rate may be lower depending on an investor’s PIR). 

With a term deposit, you'd usually pay your regular income tax on interest earned, which could be up to 39%.