What is Kernel PIE Save?
Kernel PIE Save is a savings option built for Kiwis who want a smarter home for their cash, with the PIE (Portfolio Investment Entity) tax benefits you’d expect from Kernel. Depending on your tax bracket, it may treat you better come tax time.
Kernel PIE Save is an on-call cash product with a rate of return of 2.25% p.a., taxed at your PIR, capped at 28%, rather than your Resident Withholding Tax (RWT) rate of up to 39%. The rate of return is variable and may change in line with Reserve Bank of New Zealand Official Cash Rate (OCR) decisions.
It is available only on Plus and Premium subscription plans.
Is Kernel PIE Save a savings account or an investment fund?
Kernel PIE Save holds on-call cash with a major NZ-registered bank, so it feels a lot like a savings account day to day, and you can add and withdraw funds freely. But the legal structure is a PIE fund, issued through the Kernel Managed Investment Scheme.
This distinction matters for two reasons. First, your returns are taxed at your Prescribed Investor Rate (PIR), not your Resident Withholding Tax (RWT) rate. For many customers, that means a better after-tax return. Second, because it is legally an investment fund, it is not covered by the Depositor Compensation Scheme (DCS).
When will Kernel PIE Save be available?
Kernel PIE Save is expected to be available within the next week or so.
If you’ve registered your interest, you’ll be among the first to know when Kernel PIE Save is live.
Do I need a Kernel subscription to use Kernel PIE Save?
Yes, you need a Kernel Plus or Premium subscription to use Kernel PIE Save. If you're on the free plan, upgrade to access it. You can do that in the dashboard under your account settings (Plan and billing).
What will the Kernel PIE Save fees be?
Just your Kernel membership — $5/month on Plus or $15/month on Premium. There are no management, transaction, or withdrawal fees on Kernel PIE Save.
You can learn more about our membership options here.
How fast can I get my money out of Kernel PIE Save?
Withdrawals from Kernel PIE Save are processed in two steps.
Step 1: Kernel PIE Save to your Kernel wallet. Submit your withdrawal request before 2:30pm on a business day and your funds will move to your Kernel wallet the same day. Requests submitted after 2:30pm will be processed the following business day.
Step 2: Kernel wallet to your bank account. Once your funds are in your Kernel wallet, you will need to make a second withdrawal to send them to your bank account. Wallet withdrawals are processed at 4:00pm on business days.
Top tip: to access your money the same day, submit your Kernel PIE Save withdrawal before 2:30pm, then submit your wallet withdrawal between 3:00pm and 4:00pm.
Can I transfer in and out of Kernel PIE Save on the same day?
No. Transfers can only go one way on any given day. If you make a contribution to Kernel PIE Save, you cannot withdraw on the same day, and vice versa.
What’s the interest rate / savings rate on Kernel PIE Save?
Kernel PIE Save is launching with a rate of return of 2.25% p.a. The rate of return is variable and may change in line with Reserve Bank of New Zealand Official Cash Rate (OCR) decisions.
How is Kernel PIE Save different to Kernel Save?
Kernel Save is already a great option for short-term cash - Kernel PIE Save simply gives you another way to hold cash within Kernel, depending on what suits you best.
In a nutshell: Kernel Save is covered by the DCS up to $100,000 and is available on all Kernel plans. Kernel PIE Save is not DCS-covered but offers PIE tax treatment, meaning your returns are taxed at your Prescribed Investor Rate (capped at 28%). Kernel PIE Save is available on Plus and Premium plans.
Tax
Kernel Save is taxed at your Resident Withholding Tax (RWT) rate, which can be as high as 39%.
Kernel PIE Save is taxed at your Prescribed Investor Rate (PIR), capped at 28%. For those on the 30%, 33% or 39% tax rate, that means a better after-tax return.
If you are on a higher tax rate and want to keep more of your returns after tax, Kernel PIE Save is worth considering.
Depositor Compensation Scheme
Kernel Save is a bank deposit and is covered by the DCS, which protects eligible deposits up to $100,000 per institution in the event of a bank failure.
Kernel PIE Save is an investment fund and is not covered by the DCS.
Plan availability
Kernel Save is available on all plans.
Kernel PIE Save requires a Plus or Premium subscription.
Why do I have to pay for Kernel PIE Save?
Kernel PIE Save is available with Plus and Premium membership. Membership is how we keep costs low - it funds the platform rather than recovering costs through fees on the other end. If you're already a Plus member for Total World Fund, PIE Save is included to help create a simple two-fund setup: Total World for long-term global growth, PIE Save for your cash buffer or short-term goals.
How is Kernel PIE Save different to the Cash Plus Fund?
Kernel PIE Save holds on-call cash with one bank. It is straightforward and designed to feel like a savings account. Your money is in one place, with one institution.
Kernel Cash Plus Fund invests across a diversified range of short-term, interest-bearing assets. These include term deposits, bonds, floating rate notes and other New Zealand fixed income assets. The fund holds positions across banks, corporates and government issuers, all with investment-grade credit ratings.
That diversification is part of what drives the higher projected yield on Cash Plus. It also means the value of the fund can fluctuate slightly, though returns are typically stable over the short term.
Neither product is covered by the Depositor Compensation Scheme.
I'm on a high-income tax rate. Which cash product is best for me?
The right choice depends on what matters most to you.
If you want simplicity and DCS coverage, Kernel Save is the straightforward option. Your returns are taxed at your RWT rate, which at 33% or 39% means a larger tax bill, but your balance is protected under the Depositor Compensation Scheme up to $100,000.
If you want a savings-style product with better tax treatment, Kernel PIE Save caps your tax at 28%. This product is part of our Plus or Premium memberships.
If you want the highest potential return and are comfortable with a managed fund, Kernel Cash Plus Fund is also taxed at your PIR, capped at 28%. Your money is spread across a range of assets rather than held in one place.
For customers on the 33% or 39% tax rate, both PIE Save and Cash Plus may offer a meaningfully better after-tax outcome than Kernel Save.
Is Kernel PIE Save covered by the DCS?
Kernel PIE Save is structured as a PIE investment fund rather than a bank deposit, so it isn’t covered by the DCS (Depositor Compensation Scheme).
How quickly can I withdraw from Cash Plus Fund vs Kernel PIE Save vs Kernel Save?
Just like with Kernel Save, Kernel PIE Save deposits and withdrawals are processed daily at 2:30pm to and from your Kernel wallet.
Withdrawals from the Cash Plus Fund take 3-4 business days to arrive in your bank account.
Does Auto-Save work on Kernel PIE Save?
Not yet, but we know it's a popular request. Auto-Save for Kernel PIE Save is on our roadmap, and we'll let you know when it's live.
Can I hold more than one of these at the same time (Kernel Save, Cash Plus Fund, Kernel PIE Save)?
You sure can! At the end of the day, the best savings plan is the one you actually stick to.
How is interest calculated on Kernel PIE Save?
Because it's technically a PIE fund, we describe the returns as a "rate of return" rather than an interest rate. Just like our Kernel Save product, the return accrues daily and is paid monthly.
Putting this into an example, if you have your money in your Kernel PIE Save account for 10 days, and withdraw before the end of the month, you will receive that 10 days' worth of returns, paid at the beginning of the following month.
What happens if I join Plus (or Premium) and then want to cancel later?
Your balance stays with you - cancelling your membership doesn't affect the money you've already saved. You can still withdraw it at any time. What you lose is the ability to make new contributions.
If you continue on Core, Kernel Save is still available as a strong on-call savings account option.