Welcome to parenthood! Ensure a bright financial future for your little one with KiwiSaver, a superior choice over standard bank accounts. Learn why KiwiSaver offers long-term growth and outpaces inflation, plus, discover how to find a low-fee provider with free expert guidance.
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“My partner and I have recently had a baby and want to set them up as much as we can to have a somewhat secure financial start.
We are thinking of kiwisaver or a bank account or both. Not too interested in anything re: investing that requires active management by us.
Main questions are:
What options are there for really low fee kiwisaver providers seeing as the only money being added will be what we put in (no govt contributions until 18). We are looking at potentially adding 1-2k on top of the govt kick start but would prefer it didn’t get eaten by fees as much as possible.
And bank account recommendations that have zero fees but a decent (for the current market) interest rate.
Or any other suggestions :)”
(Original question on Reddit)
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Congratulations on the new addition to your family! It’s a great idea to set up a solid financial foundation for your child. Here are some answers to your questions:
KiwiSaver is a better option than a standard bank account for a baby as it offers long-term growth potential. KiwiSaver also generally outpaces inflation which regular savings accounts struggle with. Although there is no such thing as a government kickstart anymore. A managed fund that is similar to KiwiSaver but more accessible could be a good option. Although, if you want to use it for your first home, it could be handy to have a KiwiSaver scheme already set up. A few things to consider there.
To find a low-fee KiwiSaver provider, I recommend consulting a financial advisor. They often provide free services that can help you find the best KiwiSaver provider and fund suitable for your needs.
It’s worth noting that while financial advisors’ services are usually free, they receive compensation from a range of KiwiSaver providers. This compensation model allows them to provide valuable, unbiased advice and information to their users without charging them directly.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
