Yield is a product available for all customers with an Australian address. It lets you invest in a fund that holds assets backed by the government.
When you make a return using Yield in Australia, you pay two fees:
a Wise fee, also known as the service fee
a fund manager fee
This article explains what these two fees are and how they work.
The Wise fee
The fee for Yield in Australia is 0.569% and it’s inclusive of 10% GST.
We calculate this fee daily based on the amount you hold, and we charge it on the first day of each month.
We’ll always take the service fee from a balance — we don’t charge it to Jars. If you've got a Jar set to Yield, we’ll charge the fee to your balance that’s in the same currency.
If you don’t have enough money in your balance to pay the fee, we’ll take it from another one that does have money in it.
The fund manager fee
The fund management fee is charged by the fund manager. It’s automatically reflected in the value of your investment, so you’ll never see it charged to your Wise account.
In Australia, the fund manager that provides Yield is Franklin Templeton, which charges you a 0.15% fee.
How do the fees work?
As a customer with your Wise account address in Australia, if you invest 1,000 AUD in Yield for a year, and the fees stay the same — the total fee spread over the year is 7.19 AUD. This amount is made up of the Wise fee 5.69 AUD, which includes GST, and the 0.15% fund manager fee 1.50 AUD.
The Wise fee is the only fee you’ll actually pay out of your Wise account — the fund manager fee is just included in the value of your investment.