BNZ sweetens KiwiSaver deal

After being late to the KiwiSaver party BNZ to offer Fly Buys with its KiwiSaver Scheme

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After being late to the KiwiSaver party BNZ to offer Fly Buys with its KiwiSaver Scheme

17th Jun 13, 11:33am by Craig Simpson

BNZ is adding Fly Buys points to its KiwiSaver Scheme.

Last week we reported that BNZ's KiwiSaver scheme had thus far grown modestly to $43.6 million under management. Since BNZ's KiwiSaver Scheme started on February 25 they have attracted 12,249 members which translates to an average account size of $3,600 per member.

From today, BNZ KiwiSaver Scheme members will be able to redeem Fly Buys points to make a contribution to their or another person’s BNZ KiwiSaver Scheme. BNZ is 25% owner of Loyalty New Zealand Ltd, the company that runs Fly Buys.

BNZ head of wealth and private bank, Donna Nicolof said "the ability to convert Fly Buys points to the BNZ KiwiSaver Scheme will give BNZ customers an easy way to add to their retirement savings."

This offer allows BNZ customers to increase either their retirement savings, or that of another person, at not cost through the redemption of Fly Buys.

Nicholof suggested this was a good way for people to contribute to their children or grandchildren’s savings.

Customers will be able to add $20 to their KiwiSaver for every 108 Fly Buys points.

BNZ is the only KiwiSaver provider to offer Fly Buy conversions.

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9 Comments

by Black Celebration | 17th Jun 13, 1:07pm 1371431220

Unless there's a few sneaky asterisks lurking around in the small print, I think this might be a game-changer.

by Craig Simpson | 17th Jun 13, 1:24pm 1371432250

Tell me how the customer actually wins here. To get a 108 points you may need to spend something like $2K to then be able to put $20 extra into your KiwiSaver.

The Bank wins as the more money that goes into KiwiSaver, the more fees they can gouge.

Wouldn't a punter be better off just putting an extra $20 into their account and not incurring the additional debt?

Craig

by Black Celebration | 17th Jun 13, 4:03pm 1371441819

Hi Craig

I stress that I haven't read the small print yet - but my comment was based on the fact that my household almost passively racks up FlyBuys points. 108 points can get you a Captain Underpants book, or $20 into your KiwiSaver. If you are over 18, and don't contribute any other "real" money, then that $20 is boosted by a further $10 in member tax credit.

Alternatively, maybe some people over the years have built up hundreds (thousands?) of FlyBuys points that are just sitting there. 5616 FlyBuys Points is 52 x 108. This translates into $1,040 into KiwiSaver - and then supplemented by a further $521 member tax credit.

by Craig Simpson | 17th Jun 13, 4:10pm 1371442252

You make a valid point if you are passively racking up the Fly Buys via your normal day-to-day activities.

I suppose I am overly cynical when it comes to insto's using "loyalty gimmicks" to attract customers as invariably they are not good value for the end user - unless of course it is a coffee card.

by Black Celebration | 17th Jun 13, 4:08pm 1371442100

"Wouldn't a punter be better off just putting an extra $20 into their account and not incurring the additional debt?"

I am referring to the points that are there already, I guess. I wouldn't go out of my way to accrue FB points by buying useless things in order to get them.

Paying actual money towards KiwiSaver out one's bank account is a real psychological hurdle for many. You can't just scrape it across online. It's harder than it sounds.

by Craig Simpson | 17th Jun 13, 4:14pm 1371442440

Agree would not go out of my way to rack up points.

by Zoltuger | 17th Jun 13, 1:29pm 1371432553

I can only see downsides to this idea.

1) you have to be a member of BNZ's scheme, which doesn't appeal to me as a non-BNZ customer.

2) To convert 108 fly buys points into $20 for my BNZ KS scheme, I need to spend $2,700 on groceries at New World or $4,500 on Z petrol (at the 91 pump price of $2.10).

3) Westpac allows the conversion of hotpoints (credit card rewards points) into $$ in their KS scheme, so the idea of points for KiwiSaver isn't new. Haven't seen that scheme take off either.

by Craig Simpson | 17th Jun 13, 2:30pm 1371436203

Zoltuger

Thanks for the information around spending at New World and Z petrol.

I guess if you were spending this kind of money at Fly Buy retaillers anyway it could appeal but for many people it is not enough incentive to either shop at Fly Buy retaillers or switch to a new KiwiSaver with no track record

by i am mako | 4th Jul 13, 10:35pm 1372934125

is changing to BNZ kiwisaver for flybys worth it or not.

well it depends on your circumstances

from my perspective it is worth consideration

my family live off my credit card & by doing nothing different

but change to BNZ gold card & kiwisaver

the best scenario i can see is if you use a

BNZ gold AMEX card & you spend $20 you receive 1 flyby point

Account fee $40 half yearly includes interest free days up to 55

card gets paid back in full monthly interest free

every day to day purchases is done via the card

including utilities & bills debited to the card

our monthly spend of $2500 = 125 flybuys points

shop at flybuys shops to increase flybuys points

per annum 1500 flybuys = $280 worth of kiwisaver flybys

add the govt member tax credit. $140

for a total of $420 in kiwisaver