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Fees

This section of Sorted is mainly about the fees associated with mid-to-long-term savings and investment products. However, it also has some tips for saving on bank fees.

When considering savings or investment you need to think about the length of time you’ll invest or save, what you’d like to invest in (such as shares, property, bonds and so on) and the level of risk. You’ll probably need help from a financial adviser and you should expect to pay them for their services. There are also fees that the provider charges.

Fees and income tax are the two most significant influences, apart from the performance of your investment, on the return you get. When comparing products, what may appear as a small difference in fees can add up over time. You need to know the financial consequences. By making sure the fees are competitive, you could save thousands of dollars over time. If you’re choosing a savings or investment product, use our fees checklist. It can help to identify the fees you’ll pay, and how much they’re likely to be.

In this section, you’ll find the following information:

  • Bank fees
    While this section is focused on savings and investment products, here are some tips for saving on your bank fees.
  • How fees add up
    Fees for different services can quickly add up. Find out how fees can affect your savings or investment.
  • Tax and fees
    Find out how much tax you'll pay with your savings and investments.
  • Comparing fee structures
    Get an introduction to the Management Expense Ratio (MER) that providers often use to compare savings and investment products, and determine fees.
  • Workplace saving schemes
    Savings schemes provided by an employer almost always cost less than an individual scheme - find out why.
  • Wrap accounts
    Find out about these accounts that combine investment with administration services, and whether they are good value for money.
  • Fee types in detail
    An in-depth look at the different fees, what they cover, their cost, and tips on what to watch for.
  • Questions for your adviser
    For a quick and easy way to find out what fees you'll pay, ask your adviser to complete our fees checklist. Plus, who to go to if things go wrong.
Glossary: investment
A way to use your money to make it grow.
Glossary: shares
Shares and equities refer to the same thing - a share in the ownership of a company and entitlement to any distributions (eg dividends).
Glossary: risk
An investment is normally considered to be risky if there is a reasonable chance that its value will vary significantly in the future. For example, an investment in shares is more risky than an investment in a bank term deposit. The value of shares may fall below the price paid for them while the value of bank deposits generally do not. High risk investments should only be taken on with long term intentions. You would expect a high long-term return to compensate for high risk.
Glossary: adviser
A person who sells financial advice and/or products. They include financial advisers, insurance agents, planners, sharebrokers, mortgage brokers and bank managers or agents. They may be salaried, paid a commission or have an hourly rate.
Glossary: provider
A company such as a bank, finance or insurance company that creates and provides insurance, mortgage, banking, savings or investment products.
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