NISA through a bank

[goodandbadjapan]

I am finally trying to get NISAs started for my wife and I in 2018. My bank has recently been encouraging me to set up with them and I just wanted to check something. Is the main reason an online broker like SBI or Rakuten is better simply that they have a wider range of funds and are usually cheaper? Is the price vastly different? My wife would probably be happier talking to someone in person at the bank than us doing it all online, but is by no means dead set in doing it that way.

Also, can you see the available funds from SBI etc before you have your account set up so we could see that, look at the bank's offerings and clearly see the difference?

Sorry for the simple questions, but really just getting started on the NISAs here!

[Dan]

Most people investing through NISA do so by buying stocks, funds or ETFs. It is not limited to funds.

There are basically three main programmes now (excluding Junior NISA).

1. Regular NISA
2. Tsumitate NISA, which kicks off in 2018. Investment is limited to pre-approved funds, of which there are about 120 at the moment.
3. iDeCo, which is a pension investment account. It is quite important to pick the right bank or brokerage for this because most of them tend to offer a limited number of funds.

The best way for you to go about would be by asking your bank for a list of funds they offer through NISA, or check their website. Their product information is probably available online.

Check what funds they sell online and in their branches. Then check how much they charge in upfront sales fees and annual management fees for the funds you're interested in. The bank may charge you as much as 4% for buying a fund in a branch while offering the same product without any upfront sales fees online. There is absolutely no reason to pay any upfront sales fees.

SBI Securities and Rakuten Securities offer broader lineup of funds for NISA through their platforms than most banks and other brokerages. Personally, I am using SBI Securities and can assure you that it is easy to open an account with them. If you're using a major bank, you should be able to link your bank account to the securities account for transferring money in and out of it.

Check SBI's fund lineup below. The funds that you can buy through NISA have a purple NISA mark. Even though the company is known as an online brokerage they actually also operate physical branches, called "Money Plaza's", around Japan. Just go there if you or your wife wants advice from someone before deciding on setting something up.

https://site0.sbisec.co.jp/marble/fund/ ... search.do?

https://www.sbisec.co.jp/ETGate/?_Contr ... &getFlg=on

Hope this helps!

[RetireJapan]

Big difference with NISA (compared to iDeCo) is that you can buy Japanese and foreign stocks and ETFs as well. Banks tend not to have the same range of stocks, and funds (like with Shinsei, for example) can be expensive.

In a Rakuten NISA (and I presume anywhere else too) you can buy pretty much everything they have and put it in your NISA account.

The new Tsumitate NISA is limited to pre-approved funds, and seems a bit limited at the moment.

[RetireJapan]

Sorry for the simple questions, but really just getting started on the NISAs here!

Funnily enough, the RetireJapan Guide to NISA is out soon: https://gum.co/sLEXJ

[goodandbadjapan]

Thanks very much Dan and Ben - that is very helpful. I was leaning towards SBI from all I had read but just wondered whether the banks offered similar deals or not. I am still not very confident at understanding all the info in order to make informed choices, but slowly I am getting there and understanding things more, largely due to everybody here!

Ben - I am very much looking forward to the NISA guide!

[RetireJapan]

My wife would probably be happier talking to someone in person at the bank than us doing it all online, but is by no means dead set in doing it that way.

Based on my interactions and things I have heard here, I would say not talking to bank reps is a feature, not a bug!

[Jamo]

Based on my interactions and things I have heard here, I would say not talking to bank reps is a feature, not a bug!

Second this. That goes not only for banks but also insurance reps etc. Most Japanese appear to be complete suckers when it comes to being sold goods and services that are unnecessary or overpriced. Most of the time because a friend or family member recommended it to them.

[Akatani]

in my extensive experience talking to Japanese people who have funds (all 2 of them), the banks push front loaded high fee funds with high dividends. They promise that you'll make back your upfront fees quickly.

[Ori]

Banks are allowed to sell only mutual funds - no individual stocks, ETF, REIT.
Or at least it was so in 2013.

[RetireJapan]

You can see the Shinsei offerings here. I find it interesting that they included a button that shows you the dividends, but not one that shows you the costs

http://www.shinseibank.com/powerflex/trust/lineup/

I love Shinsei as a bank, but for investments they seem to suck.