Frequently Asked Questions

Investment

What type of investments do you offer?
MARAC offers term deposit and tax-paid retirement bond investments which are secured by first ranking debenture stock.
How secure are the investments?
First ranking secured debenture stock is subject to prior permitted charges (currently none) and claims given priority by legislation, which effectively means it takes priority for repayment ahead of most other amounts owed by MARAC in the very unlikely event that MARAC becomes insolvent. The investments are subject to the terms of a Trust Deed, which is in place to protect our investors. For a copy of our current prospectus, which summarises the terms of the Trust Deed, click here or call us on 0800 26 27 22 and we’ll send you a copy.
What interest rates do you pay?
The rates vary according to the investment product, the amount invested, the term of the investment and the interest payment frequency. For our current rates, click here.
Are there any fees or charges?
None at all.
What is the minimum amount I can invest?
$1,000. However a higher minimum may be required in order to be eligible for higher rates or for certain products.
What are MARAC’s investment terms?
On call or up to five years.
How can I receive my interest?
For all investment products (except MARAC Retirement Bonds)
Choose the way you want to receive your interest – either.
  • direct credit to your bank account or
  • compounded
Then you choose your interest frequency, which can be either:
  • quarterly or
  • annually or
  • deferred to maturity.
MARAC Retirement Bonds
All interest is compounded quarterly and paid when the bond matures.
Can I change the way I receive my interest during the term of my investment?
Yes, just call us on 0800 26 27 22 and we’ll sort it out for you.
Is my interest taxed?

Yes, unless you hold an exemption certificate from Inland Revenue.

The current New Zealand tax laws require MARAC to deduct resident withholding tax (RWT) from your interest before it is credited or paid to you. Please ensure you show your IRD number and your tax rate (19.5%, 30%, 33% or 39%) on the investment application form. If you don’t show your IRD number, we must deduct RWT at 39%.

If you are not a New Zealand tax resident, we deduct non-resident withholding tax at either 10% or 15%, depending on where you live. Alternatively, you can ask us to deduct approved issuer levy instead, which is only 2%.

How do I know how much interest I’ve received?
Each year we will send you a certificate showing you the amount of interest paid to you or compounded to your investment, and the tax deducted from it.
What happens at the end of the investment term?
We will send you a letter about three weeks before your investment matures to ask whether you want your investment repaid or reinvested. If you’d like to reinvest, we can take your instructions in writing, over the phone (call us on 0800 26 27 22) or by email (invest@marac.co.nz). If you want it repaid, you need to request this in writing and return your debenture certificate to us (MARAC Finance, PO Box 9919, Newmarket, Auckland 1149) and we will credit it to your bank account.
Can I cash in my investment early?

The interest rates we offer on investments are based on the expectation that the funds will be with us for the full term. Investors do not have a right to withdraw their investment before maturity, but we understand that people’s circumstances change. We will consider early repayment in the situation of financial hardship. We also repay investments when a sole investor passes away. If a joint investor dies we transfer the investments to the surviving investor.

The interest rate may be reduced when an investment is repaid early, to match the term that the funds were actually invested for. For example, a $5,000 term deposit for two years might receive interest at 7.75%. If the investment was repaid after nine months, the rate for that period might be 7.6%, so the interest will be calculated at that rate.

In each case we need a written application giving full details of the situation and the reasons for requesting early repayment. If your request is approved we will repay the funds within five working days.

I am executor for a sole MARAC investor who has died. What happens to their investment?
You will need to send probate or letters of administration in relation to the deceased investor’s will. We will then repay the investment to the estate.
Can I sell my investment?
You may sell your investment privately in minimum amounts of $1,000. Please use the standard form for share transfers, available from MARAC or any sharebroker.
What is a New Zealand deposit guarantee scheme?
It is a facility where the Crown guarantees people who have deposits with institutions in the scheme. It covers all retail deposits of participating New Zealand-registered banks, and retail deposits by locals in non-bank deposit-taking entities. This would include building societies, credit unions and deposit-taking finance companies.

Click here to find out more.