Cash PIEs have been given the nod by the government and all the banks are expected to rush out their offerings. Everyone is aping the original Raboplus product with its headline rate advertised like a term deposit and zero fees.
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10515324&pnum=0
These products are ok, but why oh why doesn't Kiwisaver work this way? In these credit crunch times people want to switch from property investments to cash, and the main way that Kiwis save for retirement is through Kiwisaver.
I suspect the main reason is that the government subsidises the fees, so the fund providers want to find reasons to introduce fee structures. Fixed rate Kiwisaver cash fund providers would be hard pressed to justify any fees, especially if they also offered a fee free cash PIE equivalent.
Personally I don't care, please offer up the product and the $40/year subsidy is all yours since I can't get my hands on it anyway.
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