Capital Drawdown Term Investment

(Closed to new deposits)

Up to



Over a 12 month term

**From 16 January 2019, the UDC debenture programme will be closed to new deposits. Customers with existing term investments which mature on or before 14 February 2019 will have the option to reinvest their deposits or have their investment repaid.**

Enjoy all the benefits of a UDC Secured Term Investment with the added advantage of being able to receive a set regular payment.

The UDC Capital Drawdown option is a unique feature of the UDC Secured Term Investment that allows you to receive a regular payment amount.

If you need to meet regular monthly or quarterly commitments; for example, school fees or rest home costs, are self-employed and rely on commission-based income, or are a retiree whose interest-only income may no longer be sufficient to cover your living expenses, the Capital Drawdown Investment option allows you to receive a regular payment without compromising your interest rate.


Key Features:

  • Monthly or quarterly payment options
  • Competitive interest rates
  • Fixed term from 1 year to 5 years
  • No fees
  • Online access through UDC Live

Call us to discuss your investment: 0800 652 832

or enquire online and we'll be in touch.

Product Detail:

Investment Amount ("Principal") Minimum of $5,000
Term of Investment ("Term") From 1 year to 5 years
Interest Rate ("Rate") The interest rate is fixed for the term of the investment View our rates online.
Interest options and payment terms Interest is calculated daily on the balance of your investment up to and including the day before the end of your investment term.

Monthly interest: interest earned will be compounded one month from the start of your investment and monthly thereafter.

Quarterly interest: interest earned will be compounded one quarter from the start of your investment and quarterly thereafter.

In your investment application you may choose to receive payments from your investment during the term, provided you maintain a minimum balance of $5,000. Such payments will be paid on the next business day after the date we compound your interest.

During the term, you may ask to increase, decrease or suspend such payments. If we agree, we may apply a reduced rate for the remainder of the term.
  All payments of interest and principal are made by direct credit to your nominated bank account. If the payment date falls on a non-business day, the payment will be made on the next business day. In this case, we will only pay interest up to and including the day before the original payment date. Non-business days are Saturdays, Sundays, or New Zealand public holidays.

The interest you earn will be added to your principal. You’ll earn interest on the amount from that point on - this is called 'compounding interest'.

If you wish to invest additional principal during the term, this will form a separate investment for the term and corresponding interest rate on offer at that time.
Fees There are no fees on a Capital Drawdown. If we allow you to withdraw your Capital Drawdown early, we may reduce your return.
Tax Interest earned on your investment is taxable. We will deduct resident withholding tax, non-resident withholding tax, or approved issuer levy (as applicable) from interest earned, then pay the balance to you.