As well as removing its annual $12 administration fee, the bank is also cutting a range of fund charges by up to 39%.

BT Funds Management NZ manages the Westpac KiwiSaver Scheme.

It was re-appointed as one of six KiwiSaver default providers in May this year following a seven-yearly Government review.

Annual fees on a $20,000 balance will reduce from $130 to $80 for its Conservative Fund, $158 to $100 for its Balanced Fund and $172 to $110 for Westpac's Growth fund (see chart below).

Westpac NZ acting chief executive Simon Power says the reductions will help Westpac KiwiSaver Scheme members grow their KiwiSaver balances.

“These changes will provide real savings for all members, regardless of their fund balance or stage in life.

“We last cut our Westpac KiwiSaver Scheme fees in December 2019, and we’re pleased to follow this up with another significant reduction for members," Power says.

“Removing the annual administration fee will have a particularly positive effect on members with low balances."

Fees for Westpac’s Cash Fund will drop from 0.29% to 0.25%, fees for its Balanced Fund will drop from 0.73% to 0.50%, and Growth Fund fees will drop from 0.80% to 0.55%.

The fee changes on existing funds will take effect at the end of September and Westpac's new Default Balanced Fund will open to members in December.

Members will be notified directly of the changes in the coming months.