Compare the Best Fixed Income Investments in New Zealand (2025)
Explore low-risk investments that generate steady income — from term deposits to income funds. Make informed decisions with our comprehensive guides and real-time comparisons.
Choose Your Fixed Income Strategy
Term Deposits
Guaranteed returns with capital protection. Perfect for conservative investors.
NZ Bonds
Government and corporate bonds offering steady income and liquidity.
PIE Funds
Tax-efficient income funds with professional management.
Current Top Rates
Live rates updated daily from our partner sites
ANZ
Westpac
Government
Risk vs Return Comparison
Compare key characteristics of different fixed income investments
| Product | Risk Level | Expected Return | Liquidity | Tax Treatment |
|---|---|---|---|---|
| Term Deposits | Very Low | 4-6% | Fixed Term | Personal Rate |
| Govt Bonds | Low | 3-5% | Tradeable | Personal Rate |
| PIE Funds | Low-Medium | 3-7% | Daily | PIE Rate (0-28%) |
| Dividend Stocks | Medium-High | 5-12% | Daily | Varies |
What is a Fixed Income Investment?
Fixed income investments are financial instruments that provide regular, predictable income through interest payments or dividends. They're ideal for conservative investors seeking steady returns with lower risk than shares.
In New Zealand, popular fixed income options include term deposits, government bonds, corporate bonds, and PIE income funds. Each offers different levels of risk, return, and tax efficiency.
The key advantage is predictability – you know what income you'll receive and when. This makes them perfect for retirement planning, saving for goals, or balancing a portfolio with growth investments.
Key Benefits
- Predictable income stream
- Lower risk than shares
- Portfolio diversification
- Capital preservation options
Frequently Asked Questions
Are fixed income investments guaranteed?
Term deposits are guaranteed up to $100,000 per bank. Bonds and funds carry varying levels of risk depending on the issuer.
What's the difference between PIE and normal tax rates?
PIE funds are taxed at 0%, 10.5%, or 28% depending on your income, often lower than personal tax rates of up to 39%.
How much should I invest in fixed income?
This depends on your age, risk tolerance, and goals. Generally, older investors allocate more to fixed income for stability.
Can I lose money in bonds?
Bond values can fluctuate if sold before maturity, but holding to maturity typically returns the full principal.