At Kernel, we believe your money should always have a clear purpose. But not every dollar in your portfolio is doing the same job.
Some of your money is destined for long-term growth. Some is for a house deposit you’ll need in two years. And some is simply cash that needs to stay accessible for whatever comes next.
Because we know everyone’s savings needs are slightly different, we’ve introduced Kernel PIE Save - a new addition to our savings range designed to give you even more choice in how you manage your cash.
With this launch, you now have three distinct ways to hold cash at Kernel, depending on your tax bracket, your need for certainty, and your risk appetite.
Which Kernel Savings product is right for you?
This guide breaks down our three savings products and how to choose between them:
Kernel Save
A straightforward on-call savings account designed for those who prioritise certainty and on-call access. With a return of 2.25% p.a.* and protection under the RBNZ Deposit Compensation Scheme (DCS) up to $100,000 per eligible depositor, it serves as an ideal home for an emergency fund or savings for short-term goals like a holiday or home renovations. A trade-off is that it does not offer PIE tax benefits, meaning your earnings are taxed at your standard marginal rate.
Kernel PIE Save
Designed for investors who want on-call access to their cash but want their money to work harder on an after-tax basis. Day to day it behaves similarly to a savings account: your cash is accessible, your returns accrue, and you can see it alongside your other Kernel holdings. With an underlying PIE structure, it taxes your earnings at your Prescribed Investor Rate (PIR) which is capped at 28%, instead of going up to 39%. The trade-off is that PIE Save is not covered by the RBNZ Deposit Compensation Scheme.
Available to Plus and Premium members, PIE Save sits alongside the Total World Fund and discounted FX fees as part of your membership benefits, creating the option for a simple two-fund setup for regular investors. Learn more about memberships here.
Effective rate
If your personal income tax rate is 30% or higher, your PIE Save returns are taxed at 28%. The effective rate below is the annualised rate of return you would need to earn in a standard savings account (taxed at your income tax rate) to match the after-tax return from the Cash PIE (taxed at 28%).
For customers on the 33% or 39% marginal rates, the PIE structure can be materially better on an after-tax basis – see the table below.
Income tax rate | RWT rate | PIR | Standard after-tax return (at 2.25%) | PIE Save after-tax return (at 2.25%) | PIE Save effective rate |
|---|---|---|---|---|---|
10.5% | 10.5% | 10.5% | 2.01% | 2.01% | 2.25% |
17.5% | 17.5% | 17.5% | 1.86% | 1.86% | 2.25% |
30% | 30% | 28% | 1.58% | 1.62% | 2.31% |
33% | 33% | 28% | 1.51% | 1.62% | 2.42% |
39% | 39% | 28% | 1.37% | 1.62% | 2.66% |
At the 39% income tax rate, PIE Save's effective rate is 2.66% - meaning you'd need a standard saver paying 2.66% to match what you get here at 2.25%. If you're on a lower income tax rate (10.5% or 17.5%), the tax difference is negligible and Kernel Save's DCS coverage may be the better fit.
Cash Plus
A managed fund that invests in a diversified mix of term deposits and bonds targeting a higher yield than standard savings products. Because you are investing rather than just "saving", your balance is subject to change with market conditions and isn't covered by the RBNZ DCS. It’s built for investors comfortable with a small amount of movement in exchange for the higher potential return on their cash.
Comparing your save options at a glance
The right choice for you depends on your tax bracket and how much you value certainty. Check your current tax rate, decide what your cash is for, and choose the account that fits.
Category | Kernel Save | Kernel PIE Save | Kernel Cash Plus |
|---|---|---|---|
Structure | On-call savings account | On-call cash product (PIE fund) | Managed fund (investing your cash) |
Rate of return | 2.25% p.a.* | 2.25% p.a.* | 2.85% p.a.* (projected yield) |
Return type | Set interest rate | Set interest rate | Variable yield (capital value can fluctuate) |
Access | 1-2 days | 1-2 days | 1-2 days |
Tax | Taxed at your RWT rate | Taxed at your PIR (capped at 28%) | Taxed at your PIR (capped at 28%) |
DCS cover | Yes (up to $100k**) | No | No |
Availability | All Kernel customers | Plus & Premium members | All Kernel customers |
Auto-Save | Yes | No | Yes |
*Rates and yields are as at 31 May, 2026 and subject to change.
** per eligible depositor, per institution, and subject to the scheme's terms.
Put your savings on autopilot with Auto-Save
Building wealth is not just about where you put your money; it’s about the consistency of getting it there.
Auto-Save lets you automate your contributions to Kernel Save. Set your amount, choose your frequency, and let it build in the background - no manual transfers, no reminders, no friction.
Auto-Save for PIE Save is next on our list and will be available soon.
The best savings plan is the one you actually stick to. By choosing the right account for your goals and automating the process, you can move away from manual banking and focus on the lifestyle your wealth is actually being built for.
Kernel Savings FAQs
What about the Deposit Compensation Scheme?
The Deposit Compensation Scheme (DCS) is designed to protect eligible bank deposits up to $100,000 per depositor per institution if a bank fails.
PIE Save and Cash Plus are not covered by the New Zealand DCS. If DCS coverage matters to you, Kernel Save is the better choice.
How does the tax benefit actually work?
Standard savings accounts are taxed at your Resident Withholding Tax (RWT) rate - which for New Zealanders on higher incomes, or trust accounts, is likely 30%, 33%, or 39%. PIE Save on the other hand, is taxed at your Prescribed Investor Rate (PIR), which is capped at 28%. If you are on a higher tax rate and want to keep more of your returns after tax, Kernel PIE Save is worth considering.
What happens to my PIE Save if I cancel my Plus or Premium membership?
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.
What should I pair PIE Save with?
PIE Save is designed as a buffer - accessible cash that's working harder than a standard bank account. It pairs naturally with the Total World Fund as a simple two-fund setup: Total World for long-term global growth, PIE Save for your cash buffer or short-term goals. Both are available for Kernel Plus and Premium members today.
Kernel Wealth Limited is the manager and issuer of the Kernel KiwiSaver Plan and Kernel Funds Scheme. A Product Disclosure Statement is available at Kernel Wealth | Resources & Documents. Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.
