Whilst both financial products - the Cash Plus Fund and Smart Saver account - are designed for those working towards short-term goals, they have some inherently different qualities which are outlined below:
Here are the key differences between the three products:
| Cash Plus Fund | Smart Saver |
Financial product | Actively managed fund (PIE fund) | Online savings account |
Where is the money? | Invested in:
| Held in a NZ registered bank account, with an investment grade credit rating.
An ‘investment grade’ bank means the bank has a credit rating of BBB or above. |
Potential return | Yield to maturity, as noted on our Save page.*
Projected yield is subject to change. | Interest rate - 4.30% |
When can I get the money? | Time to sell units
Withdraw to your bank | Transfer to Kernel wallet
Withdraw to your bank |
Read more about our transfer and withdrawal processes.
You can read more about the differences between cash funds, term deposits and savings accounts.
What are the fees for each?
Smart Saver accounts are free with any Kernel account; that's right, there are no transaction or account fees.
An annual fund management fee of 0.25% is charged in daily increments on any money invested into the Kernel Cash Plus Fund.
Kernel earns a small commission from our banking partners on the Smart Saver product.
You can read more about our pricing here, including our member fee, which is charged on any Invest portfolio balances over $25,000. The member fee does not apply to Smart Saver accounts.
How do I decide between the products?
Ultimately the product that you choose to grow your short-term savings which is dependent on your personal situation, appetite for risk and goals.
As mentioned, both products are designed for those with a short-term investment horizon (less than 3 years).
If you have any further questions, you can read our FAQs or email our team at support@kernelwealth.co.nz.