Booster Savvy Review - The Definitive Guide to an Innovative Interest-Earning Cash Account

Our review of Savvy looks at the rate of return, features, benefits, what to be aware of, how it differs from a typical bank account, frequently asked questions and must-know facts.

Updated 21 April 2025

Summary

Savvy, offered by investment manager Booster, blends the day-to-day features of a debit card account with a meaningful return. Where most banks don't pay interest on everyday transaction accounts, Savvy arguably offers a generously high-paying rate of return.
Not a bank: Booster is not a bank, and the money you put into Savvy is invested in the Booster Savvy Fund (a cash-based managed fund). The debit card, known as the Booster Savvy Card, is linked to your funds, , in the Booster Savvy Fund.
What you'll earn: Booster offers a set return of 3.50% p.a. which is reviewed monthly. Booster calculates the interest you earned daily (based on your balance) at 8pm and credits this monthly to your account.
Bonus return: There is a bonus return, a quarterly distribution given when there's surplus income after deducting the set return, Savvy Fund's expenses and Booster's capped fee. This bonus return is in addition to the set return (currently 3.50% p.a.) but isn't guaranteed, and we don't have an estimate of how much it could be.
App-based investments: Savvy focuses on digital, meaning you'll need the app, available on the App Store and Google Play.
No Minimum Investment: There's no minimum initial investment, and Savvy cardholders will earn interest on every cent.
Withdrawals: Funds can be withdrawn 24/7 via the debit card and app. You can use the card on the Mastercard network, Eftpos, and at New Zealand ATMs.

To help explain Savvy, our review covers:

Know This First:

Finding a tool that combines the accessibility of a daily interest-paying account with the benefits of promoting easy-to-achieve savings is a New Zealand first.
Savvy is an innovative financial platform that promises a lot of features and a high cash return. Our review delves deep into the workings of Savvy, highlighting its key features, how it compares to traditional bank accounts, and the potential benefits it offers to different types of users.
Our review is published to explain what's important, but as this is a newly launched product, please email our research team if you have a question about Savvy that we haven't covered.
Important: Financial markets are volatile - the current return is 3.50% p.a. but can change anytime.
Our dedicated Booster Savvy Analytics Review explains the features of Booster Savvy's app and how they help users to get insights into their spending and shape habits.

Booster Savvy and Awards:

Beyond our Editor's Choice awards which place Booster Savvy in a class of its own, Booster Savvy debit card was awarded Highly Commended in the ‘Best User/Customer Experience Initiative for Consumers’ category at the prestigious 2024 Fintech Futures Banking Tech Awards in London. This recognition highlights Booster Savvy’s innovation as a New Zealand product competing alongside global financial giants like J.P. Morgan and Morgan Stanley.
The Booster Savvy debit card was also a finalist in the ‘Best Use of Tech in Private Banking/Wealth Management’ category at the 2024 Fintech Futures Banking Tech Awards, further showcasing its innovative approach to integrating investment and everyday banking. We believe that this achievement underscores Booster Savvy’s impact in bringing cutting-edge financial solutions to New Zealand's market.

Important: Booster Savvy App Reviews
You might notice Booster Savvy’s app (Booster NZ) has a modest rating in the app store and Google store, but there is important context - some negative reviews stem from confusion with the Booster NZ app and mybudgetpal, a separate budgeting tool distributed by Booster. To clarify:

Savvy is a distinct product — a debit card linked to an investment account and a smart app providing payments, savings tools and powerful analytics.
The Savvy app is accessible via the BoosterNZ app, which also enables users to manage their KiwiSaver account and other direct investments if they have them with Booster.
We do not think that many of the reviews posted are related to Savvy. These reviews may skew perceptions of Savvy’s app despite Savvy not being mentioned at all.

Our View: The Savvy app is fit for purpose — managing money and earning returns and the review noise doesn’t fully reflect its performance.

Answering a Common Question: "Is the 0.60% p.a. fee charged annually on the end-of-year balance in your account, or split into a monthly charge, or is it a fixed monthly or yearly charge (e.g. does it go up or down with the balance)?"

Savvy account holders won't see the 0.60% fee in their transaction list. Booster takes a small fee for managing your money in the Savvy fund – but not from your balance (so you won't see it in your account transactions. Instead, the fee comes from the returns on investments in the fund and is capped at 0.60%. This fee is taken after covering the costs of running the fund and after your 3.50% p.a. set return is paid.

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Features of Savvy Explained

Savvy is packed with features, which we explain below in detail:

Fixed Interest Rate: Despite the underlying investments being a fund, Booster offers a set return rate of 3.50% p.a. plus the possibility of bonus interest (when available, please see below) to every customer. This return can change at any time as is reviewed monthly.
Stacks - Personalised Accounts for Different Needs: Savvy doesn't lump your money into a single generic account (unless you want to have an all-in-one account). It offers "Stacks," which act as individual accounts tailored for specific purposes. For instance, you can keep your rent money separate from your entertainment or travel money. This approach promotes financial organisation and ensures funds for specific expenses aren't accidentally spent elsewhere.
Boost - Automatic Spare Change Savings: The "Boost" feature works by rounding up your purchases if you enable it. Savvy rounds up the transaction whenever you buy something to the nearest 50c, $1, or $5 (based on your preference), depositing the extra change into a designated Stack. This is a painless way to save without even realising it, accumulating savings over time from routine transactions.
Sweep - Optimise Leftover Pay: At the end of each payday, Savvy evaluates your balance. If there's unspent money, the "Sweep" function can automatically transfer it to a chosen Stack. This helps ensure any leftover money from your salary isn't wasted and contributes to your savings objectives.
Salary Split - Pre-arranged Money Allocation: The "Salary Split" feature automatically lets you distribute your incoming salary among different Stacks. This is an excellent tool for those who want to budget their income precisely, ensuring that each expense category gets its designated amount right when the salary arrives.
Forecast - Intelligent Spending Overview: The idea of the "Forecast" feature is to help you stay ahead of your bills and subscriptions. Savvy analyses your spending patterns, learns to predict upcoming expenses, and provide insights into your available balance. This foresight helps you manage funds effectively, preventing unexpected shortages.
Tracking + Insights - Guided Financial Progress: Savvy offers a dynamic tracking system that monitors your progress towards savings goals. Not only can you see how close you are to reaching your objectives, but Savvy also provides personalised insights and reminders to keep you on the right financial track.
Cashflow - Comprehensive Spending Snapshot: Transparency is essential in financial management. Savvy's "Cashflow" feature gives you a clear view of your spending across daily, weekly, and monthly periods. By understanding where your money goes, you can make informed decisions about budget adjustments.
Accidental Death Cover - Hassle-free Safety Net: Savvy users receive a $2,000 insurance cover for accidental death, with no paperwork involved. You're automatically covered when you join Savvy, providing security for unforeseen situations. You can read the policy in detail here in the PDF outline.

What is the deal with 'Bonus Interest'? How much will it be?
We asked Booster to explain this - their response is below:

Bonus returns will be possible once all related costs to running the proposition are covered along with the manager's fee.
For example, all Investment Returns and Income related to card transactions are offset against the set return and certain fees associated with providing access to the payment networks.
Should this be a surplus amount after the manager's fee is paid, this will be paid out to members in bonus interest relative to their balance.
Booster disclaims that it will take some time to reach this point, and as such, Bonus Interest is not a core benefit of Savvy.
Any bonus return paid by Savvy is not separately disclosed in fund updates. Instead, it is included within the overall fund return. Based on our discussions with Booster, they do not expect to pay any bonus return until the fund reaches a sufficient scale, and there is no set timeframe for when this might happen. We believe any potential bonus return is unlikely to be significant or a material benefit, and Savvy offers significant benefits and features beyond any bonus interest payments.

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Booster Savvy vs an on-Call or Everyday Bank Account

Savvy vs an on-Call or Everyday Bank Account - Understanding the Differences

Our summary helps explain the differences with what's important.
Legal Structure:

Savvy's underlying Fund operates as a Managed Investment Scheme with a licensed manager. While there is no credit rating as you'd find with a bank, the Financial Markets Authority regulates the Fund, as they do with KiwiSaver funds and other managed funds.
The Fund's investment assets are held separately from the Manager or Supervisor's assets. In practice, what that actually means is that if something happens to Booster, your funds are safe which is different to a bank where your deposits rely on their ongoing viability.
Unlike bank deposits, the Fund won't be covered by future bank deposit guarantee schemes, which came into law in 2023 https://www.beehive.govt.nz/release/deposit-compensation-scheme-becomes-law

Supported by Money Management Tools:

Savvy's app offers tools and insights to improve money management; it's focused on maximising savings and interest payments and minimising spending and debt by ensuring you understand the money you earn and how it's spent. Some banks also offer similar tools, but Savvy is arguably far more advanced, given the boost and sweep features (among others) designed to increase your savings.

Transferring Money:

Savvy's account number is recognised within the New Zealand payments system, meaning you can receive payments and pay into any New Zealand bank account. This operates similarly to typical bank accounts.

Spending and Withdrawing Money:

Savvy's debit card lets you make transfers, use Eftpos, withdraw from NZ ATMs, make online purchases and use Mastercard services wherever Mastercard is accepted worldwide.. However, Savvy customers can't visit a branch, set up direct debits, transfer to overseas banks, overdraw, or make direct overseas transfers, features which most banks offer. There are no joint accounts, nor can you have two cards linked to the same account.
This means that Savvy is most suitable for New Zealand-based and online transactions, which, for most people, will be the majority of their spending.
Currently, Booster is developing the capability to add Direct Debit functionality to Savvy. Until this feature is available, users can utilise Automatic Payments (AP) and the 'card on file' method for transactions. While Direct Debits are ideal for fluctuating payments such as monthly power bills, many power companies also accept 'card on file' as a payment option. This means that any consistent, recurring payment can be managed through AP. Furthermore, all subscriptions and utility bills compatible with 'card on file' payments can be seamlessly integrated with Savvy.

Underlying Investments:

Savvy's Fund invests in cash deposits, New Zealand government and bank securities, with a repayment risk exposure. Booster manages the investments. In contrast, a typical account is a debt security to a bank.
Booster's Savvy Fund has a unit price held at $1, whereas bank deposits directly reflect cash value.

Returns:

The Fund aims to provide competitive returns (currently set at 3.50% p.a.) with the potential for Bonus Returns. The tax rate on returns is capped at 28% since the Fund is a PIE (Portfolio Investment Entity). Our research into bank accounts and call accounts indicates lower interest rates and a tax rate as high as 39% on returns (unless you've chosen a PIE term deposit or PIE call account).

Fees:

Booster's earnings from the Savvy Fund are capped at 0.60%, with transaction fees applicable only to foreign transactions. The estimated return Booster advertises is always after the capped fee (but before tax).
Banks don't charge fees when you invest in call accounts or term deposits, but they make a margin. For example, they may pay you 4% p.a. on a call account and lend out your money to a homeowner for 7% p.a., making a 3% p.a. margin. Banks also charge for foreign transactions as outlined here.

Want to know more? Booster has helpfully put together a full comparison between Savvy and typical bank accounts, which you can download here.

What about FX fees when using the card?

FX transaction fee: When you purchase overseas, e.g. USD, AUD, etc, it is changed into NZD at an exchange rate set by Mastercard. The FX transaction fee is 2% of the NZ dollar value of the purchase, which is the range of what banks typically charge.
ATM fees: There may be overseas ATM fees, but these will depend on what ATM you use; Booster isn't treated differently from any other card.

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Understanding Fixed vs Floating Cash Fund Returns

When comparing cash fund options like Booster Savvy to other cash funds, one key distinction is how returns are presented and determined: "fixed" versus "floating." We explain what you need to know to help you understand the difference:

Booster Savvy (Fixed Rate Approach):

Booster Savvy offers an upfront return rate—currently 3.50% (subject to periodic changes). This rate is clearly stated at the outset, giving you certainty about the return you'll earn until the rate is adjusted.
As a PIE (Portfolio Investment Entity) fund, it also provides tax advantages, especially for those in higher tax brackets. However, this rate isn't "locked" like a term deposit—it can change based on market conditions, such as shifts in the Official Cash Rate (OCR).
For example, Savvy's rate was 4.75% earlier in 2024 but has since adjusted downward as interest rates have fallen.

Other Cash Funds (Floating Rate Approach):

Many cash funds, like the Kernel Cash Plus Fund, don't advertise a specific rate upfront. Instead, their returns "float" based on market performance and are only known in retrospect—typically updated monthly or when you check your account.
For instance, the Kernel Plus Cash Fund reports its latest results on its website, which is stated after fees and tax (at a 28% PIR rate).
Please be aware that these returns fluctuate daily with market conditions, making them less predictable upfront but reflective of broader trends; our guide to interest rate predictions explains more.

Important: Key Considerations and Balancing Certainty vs Flexibility
Savvy's upfront rate offers clarity at the time of investment, while floating-rate funds provide returns that adapt to market shifts - this means they'll be potentially higher or lower than Savvy's rate over time. Specifically:

Market Trends: With the OCR and interest rates trending downward in 2025, both fixed and floating rates will likely reflect this decline, though floating funds may adjust more gradually. Our guide to interest rate predictions has more details.
Fees and Tax: Savvy has no additional fees to deduct from its advertised interest rates, and it uses a PIE structure, while other funds may present their returns exclusive of fees and/or tax. Please compare 'apples with apples' regarding fees and returns.

Our View: Ultimately, the "better" option depends on your preference for predictability versus adaptability, as well as your investment timeline and tax circumstances. For short-term cash parking (e.g., a few months), Savvy may appeal if you value knowing the rate upfront, while a floating fund could suit those comfortable with market-driven returns. However, our observation of Savvy's interest rate history suggests it closely follows OCR movements, meaning any increase in OCR will likely see Booster adjust Savvy's interest rate upwards and vice versa.

As with every guide on MoneyHub, this is general information only and not financial advice. Returns are subject to change, and past performance doesn't guarantee future results.

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How Does Booster Make Money From Savvy?

Booster offers many benefits and features that might make you wonder about hidden costs. However, rather than profiting from hidden fees or margins, Booster adopts a transparent approach with its fixed management fee of 0.60% p.a. And, instead of pocketing earnings from transactions as most banks do, Booster channels these profits back into the fund.

For example - the Payment System Income:

The Savvy Fund will generate transaction-based income (from interchange fees) from contactless payments and international transaction fees when using the Savvy Debit card. This unique structure ensures that customers can potentially gain from their own transactions.
As an example, if a $100 purchase generates 20 cents of interchange fees (as estimated by Mastercard's guidance), the fund will earn 20 cents, which increases the overall return and helps grow the Bonus Return. Booster's earnings come solely from the management fee on the funds invested.
Booster has to pay costs for accessing the payments network. Overall, surplus payment system income (after expenses) can be returned to Savvy customers via the Bonus Return.
Apart from the fees outlined above, Booster makes money from one source only - the Management fee. Booster charges a fee, capped at 0.60% to manage the fund. However, this fee is not deducted from the 3.50% p.a. set return, so the 3.50% is what you'll earn (pre-tax).

Why is Booster offering Savvy? What's in it for them, and why is it so much better than a standard bank account?

We talked to Booster's team about this. Their response is as follows:

Booster has been helping people with long-term financial well-being for over 20 years through KiwiSaver and investments.
Booster understands the challenges of managing the weekly household budget but that it is the key to helping people get ahead (and they created mybudgetpal as one tool to help).
Savvy allows Booster to help existing and new customers in the short term by enabling them to engage with their finances daily, improving their overall financial resilience - according to Booster, this is what they are all about as an organisation.
Booster claims to have the expertise and experience to provide New Zealanders with a new way to manage their finances. Savvy has been launched to give New Zealanders another option which can help them get more from their money.

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Security and Customer Service Booster Savvy NZ

Security and Customer Service - What You Need to Know

Given it's a new product and a first for Booster, we asked their team some questions about security and customer support. Their responses formulate the answers below:

Security and Protection
How safe is the app? Are there security measures in place, like two-factor authentication? What happens if there's fraud or a payment issue? Who do I contact?

Savvy is homed in Booster's app, which has long been in operation following the high-security standards required in the financial services industry. Users benefit from biometrics and two-factor authentication for web-based login.
Booster follows industry standard practices to monitor and proactively manage fraud risk. If customers experience any issues with their account, they can contact Booster's Wellington-based team directly.

Customer Service
Who supports the Savvy card? Can clients get real-time help if they have Savvy account issues?

Booster's Wellington-based support team is on hand to help customers with queries. Booster has been in business for 25+ years, is a default KiwiSaver provider, and has experience dealing with tens of thousands of customers for various needs.

Booster Savvy Review NZ Suitable Customers Explained

Who is Savvy Suitable For?

We see Savvy as a leading innovation for New Zealand and the first of its kind. We like that it gives certainty with a set rate of return (despite the investment being in a fund, not a bank account). This set rate, coupled with numerous savings features, helps encourage savings and, arguably, lowers the risk of needing to take on personal debt by effectively allowing Savvy customers to manage their money.

While we believe Savvy will attract a wide user base, our typical customer summary explains how it works and how it helps a range of people:

Connor, the Uni Life-Handler:
Connor juggles university, a part-time job, and social life, all while keeping an eye on his money and budget. He uses Savvy for daily expenses, from buying textbooks to late-night pizza runs, and appreciates earning money on the set returns when almost all student bank accounts offer 0%. With the app, Connor can check stack balances and make payments in one place.

Alex, the Safe-Bet Saver:
After graduation, Alex started her first job in Wellington and decided to put aside a good chunk of her first salary into something steady. Alex chose Savvy, attracted by its low-risk assets. While not using it for everyday purchases, Alex sleeps better knowing that if there's an unexpected expense or spontaneous road trip, they have 24/7 access to those funds with a debit card.

Josh, the Ambitious Entrepreneur:
In the throes of kickstarting his business, Josh values every dollar in his personal life. He relies on the Savvy to deliver set returns and enjoys that his money works harder for him. He can track his expenses and ensure he stays within his budget, leaving him more time to focus on his business growth.

Liz, the Urban Professional:
Navigating a fast-paced corporate job in the city, Liz appreciates the seamless nature of Savvy. For her, time is of the essence. Savvy lets her split her salary into different Stacks, ensuring she automatically sets aside money for rent, utilities, and some fun weekend getaways. The forecasting tool helps her avoid unwanted financial surprises, ensuring she's always prepped for that next brunch or city event.

Phillip, the Young Dad:
Recently married and planning for a family, Phillip is all about smart financial planning. Savvy is his app of choice to keep family finances in check. He loves the Tracking and Insights feature, helping him and his partner stay on target with their savings goals and helping create a nest egg for their baby son. The Accidental Death Cover also gives Phillip an extra layer of reassurance, knowing his loved ones have some financial support should the unthinkable happen.

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Frequently Asked Questions

Is the 0.60% p.a. fee charged annually on the end-of-year balance in your account, or split into a monthly charge, or is it a fixed monthly or yearly charge (e.g. does it go up or down with the balance)?

Savvy account holders won't see the 0.60% fee in their transaction list. Booster takes a small fee for managing your money in the Savvy fund – but not from your balance (so you won't see it in your account transactions. Instead, the fee comes from the returns on investments in the fund and is capped at 0.60%. This fee is taken after covering the costs of running the fund and after your 3.50% p.a. set return is paid.

What happens if Booster can't pay the Set Return

While Booster believes this risk is unlikely due to low-risk assets and their financial strength, there is still an inherent risk that they might not fund the top-up for the Set Return.

Important: Whilst there is no guarantee, Booster, per its fund documents, has agreed to pay the Set Return and any Bonus Return to customers.

How are returns calculated and distributed?

The Set Return is applied daily and credited monthly. The Bonus Return is calculated quarterly based on payment system income, investment returns, and associated expenses.

Important to Know: Bonus Returns – Any bonus return paid by Savvy is not separately disclosed in fund updates. Instead, it is included within the overall fund return. Based on our discussions with Booster, they do not expect to pay any bonus return until the fund reaches a sufficient scale, and there is no set timeframe for when this might happen. We believe any potential bonus return is unlikely to be significant or a material benefit, and Savvy offers significant benefits and features beyond any bonus interest payments.

Can I withdraw my money whenever I want?

Yes, you have 24/7 access to your funds through a debit card or the app across various transaction methods.

How do taxes work with the returns I earn?

An amount is set aside for potential tax liabilities whenever you earn returns based on your Prescribed Investor Rate (PIR). As the underlying Booster Savvy Fund is a PIE fund, the highest tax charged is 28%.

What if a merchant imposes a surcharge for transactions?

If a retailer or website has a debit card fee, this will be charged in addition to the cost of the goods or services you're buying. The merchant retains Such surcharges are not paid to Booster or any related party.

To minimise the risk of this issue, Booster has made sure that the card is also an EFTPOS card. This means where a customer is confronted with the surcharge for paywave/credit label, they can insert the card and avoid the surcharge.

Is my money insured with Savvy?

Unlike traditional bank accounts, funds in Savvy are not insured per the 2023 legislation. They are cash-based investments and carry their own set of risks. It's crucial to read and understand these before investing.

More details:

Booster Savvy is not a bank account and Booster is not a bank. Savvy’s an investment account linked to a debit card for day-to-day spending and a smart app for payments and savings tools.
Booster Savvy provides features that have similarities and differences from a transactional account available through a bank. This comparison table highlights those features compared with a typical on-call transactional bank account and addresses why Savvy is not covered in the current legislation and how secure money held in Savvy is.
As an investment account (invested 100% in cash and cash equivalents), Savvy has a risk indicator of 2 which is at the lower end of the risk range.
Additional information regarding the risks of investing in Savvy can be found here in Section 4 – what are the risks of investing? - in the Product Disclosure Statement.

How secure is the Savvy app?

Savvy prioritises user security and implements advanced encryption technologies to protect users' data and funds. Regular updates are also made to enhance security features.

Are there any fees for ATM withdrawals or transactions?

No additional fees are imposed by Booster for ATM withdrawals or transactions within New Zealand. However, foreign transaction fees apply to overseas transactions.

Booster Savvy Review NZ Concluding Comments

Our Conclusion

Savvy reimagines the traditional banking experience by blending the perks of daily transaction accounts with the potential earnings of an investment.
The numerous features and tools that promote smarter financial habits cater to many New Zealanders, and we're pleased to see Savvy launch in New Zealand. Unlike debit card apps like Dosh, which arguably encourage spending to get cashback, Savvy innovates to build wealth for its customers.
Before signing up, understanding Savvy's workings, benefits, and potential risks is essential. Our review is published to explain what's important, but as this is a newly launched product, please email our research team if you have a question about Savvy that we haven't covered.

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