They are expected to draw a lot of money now in term deposits , says Fundsource general manager Binu Paul.

"There's going to be huge demand from the banking side – there's about $65 billion in term deposits at the moment. I don't know what the split of that is in terms of tax but I imagine the attractiveness of that 30% means that by next year all the banks will have cash PIEs."

There are extra costs associated with PIEs – they come under the Securities Act and will have to issue a prospectus and an investment statement, says ASB Bank's head of business ventures Peter Hall.

Also, investors operating through a trust or a company cannot get the tax benefit flowed through: only natural persons can.

But he confirmed ASB Bank is looking at the area.

Westpac's head of wealth management Tracey Berry says, "unarguably there is an opportunity here for banks. "There are extra costs – a PIE is a managed fund and it will carry the costs associated with that - but for the investor they are more attractive than going into term deposits alone."

Adding to the attraction for banks is the recent market turmoil, says AMP Capital's senior portfolio manager Grant Hassall.

Local banks are no longer able to get cheap loans offshore as easily, and more are looking to source capital domestically, he says.

Simultaneously, investors will be looking for safer investments. PIEs could also pull money from finance companies, he says.