How Raiz Works: The Basics
Raiz connects to your bank account and debit/credit cards, rounding up every purchase to the nearest dollar and investing the difference. Beyond round-ups, Raiz supports recurring scheduled investments and one-off deposits. The combination of round-ups and scheduled contributions is designed to make investing a painless habit.
Raiz's Investment Portfolios
Raiz offers seven portfolio options ranging from conservative to aggressive: Sapphire (conservative, bonds and cash), Emerald, Jade, Topaz, Amethyst, Sapphire Growth (aggressive ETF-based), and Raiz Sapphire (cryptocurrency-included option, higher risk). The core portfolios invest in a mix of Australian and international ETFs including iShares products, providing genuine diversification across asset classes.
Raiz Fees: The Critical Analysis
Raiz charges a $3.50/month flat fee for balances under $20,000, plus a $0.30/month Raiz Rewards fee. Above $20,000, it switches to 0.275% per annum. On a $500 balance, that's an effective fee rate of 8.4% — extraordinarily high. Raiz's flat monthly fee only becomes competitive with ETF alternatives when your balance reaches approximately $15,000+.
Raiz Rewards: Is the Cashback Worth It?
Raiz Rewards allows you to earn cashback when you shop with participating brands — over 200+ partner brands. The cashback rates are typically modest (1–5%). The $0.30/month Rewards fee means you need to earn at least $3.60/year in Rewards cashback to break even on the feature.
Raiz 2025 Verdict
Raiz's round-up concept is genuinely clever and has helped many Australians start investing who otherwise wouldn't have. However, the fee structure is a significant drawback for small investors. If your balance is below $10,000, Spaceship (zero fees under $5,000) or a direct ETF purchase through a low-cost broker is usually more cost-effective.
Rating: 3.5/5 — Great concept, but fees make it less suitable for small balance investors.