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kiwibattler

KiwiSaver Providers with no Fees on Accounts for Children

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Hi,

I want to get my grandchildren enrolled in Kiwisaver and make regular small contributions, but am concerned that fees will be significant relative to my small contributions . I have heard that some providers do not charge fees on children's KiwSaver accounts, but I have not seen a list of these providers. Can readers help with putting a list together? Thanks in advance.

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Hi everyone, Tom from Sorted here. Kiwibattler, you're absolutely right to watch the fees. See this piece from our friends at Poirirua Budgeting on why KiwiSaver is "rated PG":

http://www.poriruabudget.org.nz/kiwisaver/why-kiwisaver-is-rated-pg/

We've actually surveyed providers on this point, and here's what they've told us.

Following are those KiwiSaver schemes that waive fees for under 18s if they are contributing regularly: 

Craigs Investment Partners kiwiSTART Select Scheme
NZ Funds KiwiSaver Scheme
Aon KiwiSaver Scheme
Booster KiwiSaver Scheme
Lifestages KiwiSaver Scheme 

(Note that Westpac have responded and told us that they no longer waive theirs.)

You can easily find out more about these schemes and the funds they offer by searching them up on our KiwiSaver fund finder under "Check your current fund".

Cheers, Tom

 

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Thanks for this info Tom.

I have written to Simplicity to see if they offer (or intend to offer) a waiver on fees for under 18s. We would switch the grandchildren over in a heartbeat if they did :)

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I have a small c

On 5/3/2017 at 11:51 AM, Tom from Sorted said:

Hi everyone, Tom from Sorted here. Kiwibattler, you're absolutely right to watch the fees. See this piece from our friends at Poirirua Budgeting on why KiwiSaver is "rated PG":

http://www.poriruabudget.org.nz/kiwisaver/why-kiwisaver-is-rated-pg/

We've actually surveyed providers on this point, and here's what they've told us.

Following are those KiwiSaver schemes that waive fees for under 18s if they are contributing regularly: 

Craigs Investment Partners kiwiSTART Select Scheme
NZ Funds KiwiSaver Scheme
Aon KiwiSaver Scheme
Booster KiwiSaver Scheme
Lifestages KiwiSaver Scheme 

(Note that Westpac have responded and told us that they no longer waive theirs.)

You can easily find out more about these schemes and the funds they offer by searching them up on our KiwiSaver fund finder under "Check your current fund".

Cheers, Tom

 

I have a small correction to this post - Westpac DO OFFER FREE children’s KiwiSaver accounts.

There is one small catch - the child also needs to have a Westpac bank account & to attract zero fees on that account you must make at least one deposit per annum.  To satisfy this requirement for my son, I have setup a direct credit of $1 every 6-months from my account.

He’s enrolled in the Westpac Growth fund (which has significantly lower fund related fees than the other KiwiSaver Provider options listed above).

Other than this one  account, we have no other banking relationships with Westpac.

 

 

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Hi everyone, so here is the latest information I have from all KiwiSaver providers:

  • Aon: the membership fees for those under 18 are reduced – from $49.80 to $40 each year
  • Craigs Investment Partners: waive the administration fees for under 18s in the Craigs KiwiSaver Scheme
  • Juno: the newest arrival on the KiwiSaver scene, they have confirmed they will be waiving all fees for those under 18
  • NZ Funds: waive the administration fee if $200 or more is put in each year
  • Westpac: used to waive the administration fee for those who joined their Starter Pac programme – this is no longer on offer for those signing up.

For more considerations to make on kids'n KiwiSaver, see here: https://sorted.org.nz/must-reads/kidsn-kiwisaver/

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Also just announced 2 days ago, Simplicity is waiving management fee for kids kiwisaver accounts: https://simplicity.kiwi/simplicity-news/simplicity-drops-membership-fee-for-kids-accounts-in-celebration-of-second-birthday/

 

They charged 30/year before this (the same mgmt fee for all their KS accounts). Plus they are the only non-profit provider who regularly donate part of their management fee to charity. Just sayin' 8-)

Edited by RichLife

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Hi everyone, Booster would like to add that while they don’t waive fees for U18s, they do waive the monthly member fee for members with balances below $500 (any age) and for members who are, and have been fully invested in the Booster KiwiSaver default savers' fund since they joined the Booster KiwiSaver scheme, with balances below $10,000.

Edited by Estelle from Sorted

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