Westpac waives KiwiSaver fees for children

Children under the age of 18 will have their 2010 monthly administration fees waived on their KiwiSaver investment if they are members of the Westpac KiwiSaver scheme.

The scheme manager BT Funds Management says the offer applies to both current members of Westpac KiwiSaver as well as new investors under the Starter Pac promotion.

Where a deposit is being made into the child's Westpac savings account each year, BT will also waive the following year's administration fees on their Westpac KiwiSaver investment.

The Government used to contribute a $40 fee subsidy towards administration fees, but that was changed in April 2009, and fees are now met by KiwiSaver members.

Andy Morris of Westpac's Investment Advisory Service says the fee can eat away at a member's KiwiSaver balance if they are not earning or putting any money into the investment.

He says BT is offering to waive these monthly fees for children under 18 if there is a deposit, no matter how small, into the child's Westpac savings account every year.

Morris says this has a double benefit - saving the administration fee, and enabling both the savings account and the KiwiSaver investment to grow, with compounding returns.

"It also gives the child a really good start to their savings in life. The earlier you start saving, the more powerful and effective the power of compounding returns are.

"It's great to teach this to your child, and help them see their savings grow."

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