One Account per Person Nisa: Megabanks And Local Banks Are Not the Answer!
If you say, “I’ve always taken care of you, so…” you will regret it.
The campaign war among banks and securities companies for the “New NISA” that will start in January 2024 has reached a fever pitch, and procedures for changing from the current NISA account will begin in October. To coincide with this, each company is offering cash, points, gift certificates, etc., in order to attract as many accounts as possible. For those who are considering asset management under the new NISA, we will explain which financial institutions you should choose.
Don’t be fooled by campaigns…you can make up the difference in no time!
The rewards for opening a new NISA (New NISA Small Investment Tax Exemption Scheme) account vary in type, such as cash, points, gift certificates, etc., but in terms of amount, they are concentrated in the 1,000-2,000 yen range. You may think, “Isn’t the best deal the best deal? You may be thinking, “Why don’t I just go with the one that offers the best deal? The difference between the two is negligible, and there are more important things to focus on. Also, as we will discuss later, if a brokerage firm offers a service that rewards points based on the amount invested, even if there is a difference in the amount of the campaign, you can quickly make up the difference.
To sum up first, the best place to open an account for the newNISA is at an online securities company. There are two reasons.
1) The number of “Temporary Deposit NISA Number of “Mutual savings NISA” handled by Net Securities: 170 ～Number of “reserve deposit NISA”: Net Securities: 170 ~ 200 Mega banks and major securities companies: About 10 to 20
First, the number of investment trusts that can be invested in under the NISA is overwhelmingly greater at online securities. The new NISA has a “growth investment line” for investing in stocks and investment trusts, and a “savings investment line” for accumulating investments in investment trusts, and the lineup of investment trusts available for investment differs depending on the financial institution. The same investment targets are available as those in the current NISA, and the lineups of the “reserve investment limit” are already very different among the different institutions.
The “Tatemonate NISA” is limited to investment trusts that meet the requirements set by the Financial Services Agency, and as of September 14, 2023, a total of 240 investment trusts are eligible for the Tatemonate NISA and were covered by this program, of which 170 to 200 were offered by online securities companies, while most megabanks and major securities companies offer only 10 to 20.
Why is there such a large difference in the number of contracts handled? The reason is that some banks and securities firms have lineups that focus on mutual funds managed by their own affiliated investment management firms. Competing mutual funds are excluded. This is a major disadvantage.
There are a number of mutual funds, such as “Nikkei225-linked ” or “S&P500-linked,” that have exactly the same contents but different holding costs (i.e., trust fees ). Therefore, if there are competing products, the one with the lowest trust fee should be chosen, but if there is not a large selection, it is impossible to compare and choose. The larger the selection, the better.
