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PIEs are great for the banks.

They are now offering PIE investments at a lower interest rate than term deposits. They argue if you adjust for the tax saving you actually get a bit more with a PIE than you would for a term deposit. Where does the difference go? Answer: into the bank coffers.

Presumably, the banks might argue there is a higher administration cost in a PIE.

This may be a good example of an unintended consequence.

When the then Minister of Finance introduced the idea of a top 28 percent tax on PIE investments, did he think at the time this would lead to further enrichment of the banks and leakage of our overseas funds?

Shop around if you're an investor. Not all banks are doing this on all investments.