Fee types in detail

There are many kinds of fees and just as many different terms to describe them. Working out what they’re all for and why you have to pay them can be confusing and time-consuming.

In this section, you’ll find detail about the different types of fees, including their names, likely costs (based on an individual savings product) and tips on what to watch out for. Many of them are unrelated to the fees your adviser is paid but cover other costs such as those associated with the provider. Products may have different fees depending on whether you’re investing a lump sum or making regular contributions.

Sometimes a product may show certain fees as being at $0 or 0%. This looks odd but gives the product provider flexibility to change these fees at a later stage without having to go through the normal legal hurdles associated with making such a change.

Depending on the type of investment, you may be charged some or most of the following, but remember it is the overall cost that matters:

1. When you start saving
   
   • Consulting fee
   • Entry fee
2. As you invest new savings
   
   • Monitoring fees
   • Servicing fee
   • Switching fee
3. Running the product
   
   • Administration fee
   • Associated costs
   • Brokerage
   • Investment fee
   • Out of fund costs
   • Trustee fee
4. When you withdraw savings
   
   • Exit fee