Wedge Review
Wedge offers 3.00% p.a. on-call returns through its app-based savings fund - higher than bank rates with PIE tax benefits. Our review covers how it works, risks, and who it suits.
Updated 21 October 2025
Summary
Our review looks at what Wedge offers, how it's different and who might benefit from this alternative savings approach. We cover:
Summary
- Wedge is a new entrant to New Zealand's savings market, launched in May 2025 with an on-call savings product that promises higher returns than traditional bank accounts.
- Unlike banks' on-call savings accounts, Wedge operates as an app, so investors manage their funds using their phone.
- The Wedge Savings Fund operates as a managed investment scheme rather than a bank deposit, using wholesale money market access to generate returns.
- Right now, Wedge offers a 3.00% p.a. rate compared to major banks' on-call rates (which you can compare in our dedicated guide).
Our review looks at what Wedge offers, how it's different and who might benefit from this alternative savings approach. We cover:
Know This First: What do I need to open a Wedge account?
You'll need to be 18 or over, a New Zealand tax resident, and have:
The entire process takes about 5-10 minutes through the app.
What are the minimum and maximum deposit limits?
Our View: This flexibility means you can start small and build up, or move significant sums when needed.
You'll need to be 18 or over, a New Zealand tax resident, and have:
- A valid NZ driver's licence or NZ passport
- Your IRD number
- An email address and mobile phone number
- A smartphone (iPhone or Android) for the app
The entire process takes about 5-10 minutes through the app.
What are the minimum and maximum deposit limits?
- Minimum initial deposit: None - you can start with any amount
- Minimum balance: No minimum, though Wedge reserves the right to close accounts at $0 for over 12 months
- Maximum per transaction: $5,000,000
- Maximum account balance: No limit
- Minimum withdrawal: $1.00
Our View: This flexibility means you can start small and build up, or move significant sums when needed.
Understanding How Wedge Works
Unlike traditional savings accounts, Wedge operates as a Portfolio Investment Entity (PIE) that pools investor money into two underlying wholesale funds. These aren't funds you can access directly - they're institutional-grade investments typically reserved for big players. The idea is that Wedge's funds management team can obtain higher interest rates, which are passed on to investors.
With regards to the fund structure, your money flows like this:
This structure lets everyday savers access the wholesale money markets where returns are consistently higher than retail banking rates.
With regards to the fund structure, your money flows like this:
- You deposit into the Wedge Savings Fund - Wedge has only one fund
- Wedge invests this into two wholesale funds they manage:
- Wedge Fortress Fund (focuses on cash and near-cash assets)
- Wedge Summit Fund (invests in quality fixed income)
- Returns from these funds pay your daily interest
This structure lets everyday savers access the wholesale money markets where returns are consistently higher than retail banking rates.
How the Set Rate Works
Wedge publishes a daily "Set Rate" - this is arguably best interpreted as your guaranteed return for that day. It's currently sitting at 3.00% per annum, meaning this rate:
Know This: Wedge is structured so your returns compound automatically every month. At the start of each month, your earned interest converts into more units, so next month you're earning returns on a bigger balance. With a higher interest rate than what banks offer on call and savings accounts, the more money investors put into Wedge (vs an alternative cash account), the more dollars earned.
- Applies to every dollar in your account (no tiers or complicated structures, unlike some savings accounts)
- Updates daily but typically remains stable
- Includes all normal fund costs already deducted
- Accrues every day and gets added to your account monthly
Know This: Wedge is structured so your returns compound automatically every month. At the start of each month, your earned interest converts into more units, so next month you're earning returns on a bigger balance. With a higher interest rate than what banks offer on call and savings accounts, the more money investors put into Wedge (vs an alternative cash account), the more dollars earned.
Understanding Wedge's Fee Structure
The return you see advertised on the Wedge app and website, known as the "Set Rate", is the rate you'll receive on your money. Unlike cash funds, Wedge doesn't charge you a flat management fee regardless of performance. Instead, they've created what they call a "swap arrangement":
- When the underlying funds Wedge invests into beat the Set Rate (e.g. the rate Wedge advertises), Wedge pockets the difference
- When the funds underperform and don't deliver fund returns to that of the Set Rate, Wedge tops up investors from their own money
- This means Wedge only makes money when they exceed their promised return (e.g. Set Rate). They estimate this excess at around 0.10% annually, but it varies with market conditions.
- We believe Wedge puts investors first (compared to bank call accounts and cash funds, which generally offer a lower return, and, in the case of cash funds, have a set management fee but don't state the daily interest rate.
What Wedge Returns Look Like
How Wedge works is best explained with an example. If you've got $25,000 sitting in various accounts, here's your annual return:
However, the after-tax picture is even better if you're on a 33% personal tax rate (or higher):
Compound this over time, and the differences start growing wider (assuming rates stay the same):
Important: This example assumes you leave the interest to compound monthly. In reality, rates change, but the gap between Wedge and what the banks offer is likely to remain significant given Wedge's structure and intentions.
Lower earner? For someone in the 17.5% tax bracket, Wedge's after-tax advantage is smaller ($723 vs $413), though still notable, making Wedge potentially appealing for investors of all income levels.
- Wedge at 3.00%: $875 (before tax)
- Big bank on-call at 2.00%: $500 (before tax)
- Difference: $375 extra per year
However, the after-tax picture is even better if you're on a 33% personal tax rate (or higher):
- Wedge after tax (28% PIE rate): $630
- Big bank after tax (33% rate): $335
- Real difference: $295 extra after-tax per year
Compound this over time, and the differences start growing wider (assuming rates stay the same):
- After 5 years: $1,616 extra (after tax) with Wedge
- After 10 years: $3,462 extra (after tax) with Wedge
Important: This example assumes you leave the interest to compound monthly. In reality, rates change, but the gap between Wedge and what the banks offer is likely to remain significant given Wedge's structure and intentions.
Lower earner? For someone in the 17.5% tax bracket, Wedge's after-tax advantage is smaller ($723 vs $413), though still notable, making Wedge potentially appealing for investors of all income levels.
Understanding the Wedge Tax Advantage
If you earn over $53,500 annually, you're paying either 30%, 33% or 39% tax on bank interest. But PIE income caps out at 28%.
Call accounts and savings accounts don't often offer PIE tax advantages, which means you're paying your full marginal tax rate on every dollar of interest earned. Here's why it matters:
Real example: Someone earning $80,000 (33% tax bracket) with $25,000 in savings:
With $40,000 in savings, the numbers get even better:
For someone on the 39% tax rate, the advantage is even more evident - they would keep just $488 of bank interest but $1,008 from Wedge on that $40,000 balance.
Know This: PIE tax isn't deducted monthly like bank RWT. You earn returns on your full pre-tax balance all year, with tax only paid on withdrawal or at year-end.
Call accounts and savings accounts don't often offer PIE tax advantages, which means you're paying your full marginal tax rate on every dollar of interest earned. Here's why it matters:
Real example: Someone earning $80,000 (33% tax bracket) with $25,000 in savings:
- Bank at 2.00%: $500 gross, $335 after 33% tax
- Wedge at 3.00%: $875 gross, $630 after 28% PIE tax
- Annual benefit: $295 extra after tax
With $40,000 in savings, the numbers get even better:
- Bank at 2.00%: $800 gross, $536 after 33% tax
- Wedge at 3.00%: $1,400 gross, $1,008 after 28% PIE tax
- You keep an extra $472 per year - that's from BOTH the higher rate AND the tax advantage
For someone on the 39% tax rate, the advantage is even more evident - they would keep just $488 of bank interest but $1,008 from Wedge on that $40,000 balance.
Know This: PIE tax isn't deducted monthly like bank RWT. You earn returns on your full pre-tax balance all year, with tax only paid on withdrawal or at year-end.
Wedge - Pros and Cons
Pros:
Be Aware:
- No contribution requirements or withdrawal limits to adhere to: Unlike "bonus" savings accounts requiring monthly deposits, no withdrawals or similar - Wedge just pays the rate, every day, on every cent you have invested.
- You can see your money grow daily: It's arguably psychologically powerful to open an app and see you've earned money overnight - this encourages more saving and makes Wedge completely transparent.
- Professional management that benefits you: The team running Wedge's funds has decades of experience managing billions for institutions in New Zealand and globally. Now they're using those skills for regular savers, and their performance fee means they only win when you do.
- It's built for modern saving: The app is well-designed, and account opening takes minutes - everything's digital, biometric-secured, and refreshingly straightforward. However, the limitation is that you can't use your computer to log in, which we acknowledge could potentially put some investors off using Wedge.
Be Aware:
- Wedge is not offering a bank account: It is not protected by the Deposit Compensation Scheme, and while the risk is low given the underlying assets are high-quality (AA-rated), there's no government backstop.
- App-only might frustrate some: Wedge doesn't offer a web interface - everything happens through your phone.
- They can freeze withdrawals: Stated in the PDS terms is Wedge's right to suspend withdrawals in "certain circumstances." While this is unlikely given the asset quality, this power exists.
Who Wedge Appeals to
We believe Wedge will appeal to:
Wedge is arguably less useful for those looking for a ready-access emergency fund, reluctant to use an app to manage their investment, and those looking for deposit protection despite Wedge's assets being in low-risk funds.
- Savers frustrated with low bank returns offered in savings and on-call accounts
- Anyone comfortable managing money via phone
- Higher earners benefiting from PIE tax rates
- Those building medium-term savings (house deposits, travel funds)
Wedge is arguably less useful for those looking for a ready-access emergency fund, reluctant to use an app to manage their investment, and those looking for deposit protection despite Wedge's assets being in low-risk funds.
How Wedge Stacks Up Against Alternatives
Wedge vs bank notice savers
Wedge offers more flexibility and higher returns. Notice Saver Accounts lock your money for 32-90 days and currently pay less than Wedge's on-call rate.
Wedge vs term deposits
Wedge offers similar (but slightly lower) returns compared to the latest term deposits. Still, Wedge offers complete flexibility, whereas term deposits lock in for months or years and rarely compound their returns monthly.
Wedge vs bonus saver/savings accounts
Wedge's simplicity beats savings accounts - there are no monthly hoops to jump through, no lost bonus for withdrawing, just consistent returns.
Wedge vs Cash and Conservative funds
Wedge offers more predictable returns and easier access, though conservative funds provide more diversification.
Wedge offers more flexibility and higher returns. Notice Saver Accounts lock your money for 32-90 days and currently pay less than Wedge's on-call rate.
Wedge vs term deposits
Wedge offers similar (but slightly lower) returns compared to the latest term deposits. Still, Wedge offers complete flexibility, whereas term deposits lock in for months or years and rarely compound their returns monthly.
Wedge vs bonus saver/savings accounts
Wedge's simplicity beats savings accounts - there are no monthly hoops to jump through, no lost bonus for withdrawing, just consistent returns.
Wedge vs Cash and Conservative funds
Wedge offers more predictable returns and easier access, though conservative funds provide more diversification.
Security and Protection
While lacking bank-style government guarantees, Wedge is regulated and audited:
- Regulatory oversight: FMA-licensed with strict requirements
- Independent supervision: NZ Guardian Trust oversees all operations
- Asset segregation: Your money's held separately by the custodian Adminis
- Quality investments: AA average rating equals major bank quality
- Daily valuations: Independent administrator prices assets daily
The table below, taken from Wedge's Product Disclosure Statement, outlines the roles of trusted third parties:
Role |
Party |
Role |
Supervisor |
The New Zealand Guardian Trust Company Limited |
Supervisor of the Scheme, responsible for supervising Wedge as Manager |
Custodian |
Adminis NZ Limited |
The Custodian appointed by the Supervisor, to hold the assets of the Fund on behalf of members |
Fund Administrator and Registrar |
Adminis NZ Limited |
Provides Fund administration and registry services for the Fund |
What Happens If Wedge Fails? Understanding Your Protections
Wedge has multiple layers of protection built into its structure:
1. Your Money is Segregated: Your funds are never mixed with Wedge's operational money. When you invest:
2. Independent Oversight: The New Zealand Guardian Trust Company supervises the fund and Wedge's operations. They have the power to:
3. The Assets Themselve: The fund invests in:
Our view is simple - these are stable assets that rarely default.
1. Your Money is Segregated: Your funds are never mixed with Wedge's operational money. When you invest:
- Money goes into the Wedge Savings Fund (a separate legal entity)
- Held by Adminis NZ Limited as an independent custodian
- Invested in high-quality assets in the fund's name, not Wedge's
- Wedge cannot access these funds for their purposes
2. Independent Oversight: The New Zealand Guardian Trust Company supervises the fund and Wedge's operations. They have the power to:
- Remove Wedge as manager if they breach their duties
- Appoint a new manager to run the fund
- Ensure the fund continues operating or is wound up properly
- Protect investors' interests above all else
3. The Assets Themselve: The fund invests in:
- Cash held at major New Zealand banks
- Investment-grade bonds (minimum BBB- rating, currently averaging AA)
- Short-term securities from quality issuers
Our view is simple - these are stable assets that rarely default.
The Bottom Line
We believe Wedge represents an innovation in New Zealand savings products - they've taken institutional investment techniques and made them accessible to everyday savers, with a fee structure that genuinely aligns their success with yours.
Arguably, the management team behind Wedge could instead run a wholesale fund that looks after high-value investors; instead, Wedge has launched to offer their talent and experience to retail investors.
The 3.00% rate demolishes traditional bank offerings, and the PIE structure adds meaningful tax benefits for many savers. The daily transparency and compound returns create genuine engagement with your savings growth.
However, Wedge is not a bank account. It's an investment product with different risks and characteristics. The lack of government guarantee and one-day access mean it's better suited for medium-term savings than emergency funds.
For savers comfortable with these trade-offs, Wedge offers transparency with a clear, above-market interest rate. The design of Wedge is that investors are essentially getting institutional returns in exchange for accepting investment risk and sharing some upside with Wedge when they outperform.
Our View: If you're tired of watching your savings erode from inflation in low-paying savings, call and everyday accounts and can handle app-only access, then Wedge deserves serious consideration. It's not perfect for everyone, but for its target market, it's well executed.
Arguably, the management team behind Wedge could instead run a wholesale fund that looks after high-value investors; instead, Wedge has launched to offer their talent and experience to retail investors.
The 3.00% rate demolishes traditional bank offerings, and the PIE structure adds meaningful tax benefits for many savers. The daily transparency and compound returns create genuine engagement with your savings growth.
However, Wedge is not a bank account. It's an investment product with different risks and characteristics. The lack of government guarantee and one-day access mean it's better suited for medium-term savings than emergency funds.
For savers comfortable with these trade-offs, Wedge offers transparency with a clear, above-market interest rate. The design of Wedge is that investors are essentially getting institutional returns in exchange for accepting investment risk and sharing some upside with Wedge when they outperform.
Our View: If you're tired of watching your savings erode from inflation in low-paying savings, call and everyday accounts and can handle app-only access, then Wedge deserves serious consideration. It's not perfect for everyone, but for its target market, it's well executed.
Frequently Asked Questions
How quickly can I access my money?
Withdrawals typically take one business day to reach your bank account. If you request a withdrawal:
- Before 4pm on a business day: Processed that day, in your account the next business day
- After 4pm or on weekends: Processed the next business day, in your account the following business day
- This means a Friday evening withdrawal won't arrive until Tuesday.
Can I set up regular deposits or withdrawals?
No - currently, Wedge doesn't offer automatic transfers within the app. You can set up regular deposits through your bank's automatic payment system using Wedge as a payee. For withdrawals, you'll need to manually request each one through the app.
How is the advertised interest rate calculated and paid?
The rate is annualised and accrues daily. Your account balance is calculated at 8pm each day, and you earn that day's portion of the annual rate. At the start of each month, all accrued interest is converted into additional units, ensuring compound growth.
What fees does Wedge charge?
Wedge doesn't charge traditional management fees. Instead, they only make money when the underlying funds outperform the Set Rate. Current estimates outlined in Wedge's Product Disclosure Statement are:
- Management and administration: 0.09% p.a. (covered within the Set Rate)
- Performance fee: 0.10% p.a. (only on excess returns above the Set Rate)
- Withdrawal fees: None
- Account fees: None
Can the Set Rate go down?
Yes, the Set Rate can change daily - Wedge sets the rate based on wholesale market conditions and will notify you via the app and email of any changes. We asked Wedge about how often the Set Rate is expected to change. Their response was:
“Wedge expects the Set Rate to change only when the Official Cash Rate (OCR) changes - as it has done since launch. This allows the Set Rate to be maintained at a rate well above the OCR”.
“Wedge expects the Set Rate to change only when the Official Cash Rate (OCR) changes - as it has done since launch. This allows the Set Rate to be maintained at a rate well above the OCR”.
How does the PIE tax advantage work for me?
If your income is over $53,500, you're likely paying 30%, 33% or 39% tax on bank interest. With Wedge's PIE structure, you'll pay a maximum of 28%. Plus, tax isn't deducted monthly - you earn returns on your full balance all year, with tax only paid on withdrawal or at year-end.
For example, if you earn $75,000 (33% tax bracket) with $30,000 in Wedge:
For example, if you earn $75,000 (33% tax bracket) with $30,000 in Wedge:
- Annual return: $1,125
- Tax at PIE rate (28%): $315
- Take-home: $810
- In a bank at 33%: You'd only keep $754
Can I have multiple accounts or joint accounts?
Currently, you can only have one account per person, and joint accounts aren't available. Wedge has indicated they're working on these features for the future.
Why is everything app-only?
Wedge has built their platform mobile-first to keep costs low (savings passed to you through higher rates) and provide a modern, secure experience. There's no web interface, phone banking, or branches. If you lose phone access, you can contact Wedge's support.
Are there any withdrawal restrictions?
There are no limits on how much or how often you can withdraw (minimum $1). However, withdrawals can only go to a New Zealand bank account in your name that's been verified through the app.
How is this different from a bank savings account?
Key differences include:
- Wedge is a savings fund, not a bank deposit
- No government deposit guarantee
- 1-day access vs instant
- Higher returns (currently 3.00% vs ~2.00% bank average)
- PIE tax advantages
- App-only vs multiple access channels
Why doesn't Wedge have deposit insurance?
Wedge isn't a registered bank or term deposit taker, so the Deposit Compensation Scheme won't cover it. However, your money is:
- Held separately from Wedge's own funds
- Managed by an independent custodian
- Invested in AA-rated assets (same quality as major banks)
- Supervised by an independent trustee
- Regulated by the FMA
Is Wedge like a term deposit?
No - term deposits lock your money for a fixed period with penalties for early withdrawal. Wedge offers on-call access (with 1-day processing) and daily rate changes rather than fixed terms. Think of it as combining better returns than on-call accounts with more flexibility than term deposits.
