Micro-investing platform Raiz has completed the beta testing phase of its superannuation product, which boasts charging some of the lowest fees in the market for balances of $50,000.
After announcing plans for its super product in March, Raiz Invest Super plans to officially launch on 16 July 2018. It charges about $425 per annum on balances of $50,000, placing it in the bottom 25% or lowest quartile for accumulation superannuation funds in the market.
Diversa Trustees will act as its trustee. The underlying financial product is the DIY Master Plan.
Raiz customers, via their smartphones, can join Raiz Invest Super. They can also consolidate multiple funds, opt in or out of life insurance, and make voluntary contributions.
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The product helps address some of the key issues identified in the recent Productivity Commission draft report into superannuation - such as the multiplicity of super accounts, by simplifying how customers engage with their super, Raiz Invest chief executive George Lucas said.
"Customers will find that growing their savings and achieving financial confidence does not have to be a complicated or daunting process. We continue to focus on improving financial confidence in investing and saving money within our customer base as well as to potential customers," Lucas added.
About 500,000 customers, largely millennials, are using the Raiz Invest app.
The firm has registered 12,000 customer transactions associated with its rewards program Raiz Rewards, which incentivises customers who shop online to increase savings with a cash-back reward.
Raiz, formerly known as Acorns Grow Australia, recently listed on the ASX. At the time, Raiz aimed to raise more than $15 million by issuing 8.4 million shares at $1.80, valuing the company at about $119 million.
At publication time, Raiz shares traded at $1.06.