RWT (Resident Withholding Tax)
Tax deducted from your interest earnings before they reach you — set by the rate you choose with your bank.
When a bank pays you interest, it deducts Resident Withholding Tax first and passes it to IRD — the savings equivalent of PAYE. You choose your RWT rate with the bank; it should match your income tax bracket.
The common trap is the default: choose no rate and the bank may apply a non-declaration rate far above what you owe. A wrong-but-declared rate gets squared up in IRD’s year-end assessment.
Related terms
From knowing to seeing.
Owdyn turns these concepts into one honest Safe-to-Spend number, updated daily from your own transactions. Free during beta, no credit card.
Free during beta · No credit card · Your data stays yours