[LesleyS]

Hi all

Even though I have perused many threads on the forum since joining a couple of months ago, Iam confused as to how we transfer funds to NZ when the time comes. Our situation is this:

1. We have current account/savings with Yorkshire Bank.

2. Savings with a direct internet account.

Is it best to pool everything together in one single account, close everything else down, then have the whole lot transferred to NZ account - apart from some immediate cash to take with on the day we fly out?

This means then that we would have to open a NZ account from here then doesnt it?

HELP - some advice clearly needed guys!!!!:confused:

LesleyS

[wiki]

I haven't done this yet, but you could open a foreign currency account with a firm like HIFX.com (there are other firms providing this service, but I happen to like HIFX) - then when you want to transfer your money you get your bank to transfer the amount to HIFX and HIFX exchanges it (at better than bank rates) to your NZ account. They charge about £7 per transfer I think.

If you put all your money in the internet account, then you can use that to instruct your bank to move the cash into HIFX - you don't need to be there in person to do it.

That way, you won't need to open a NZ account until you arrive, and you can take the time to shop around for the best account to suit your needs.

You can open a NZ account from the UK, but as it can all be sorted in a day in NZ I'd be inclined to wait. Do a search for bank accounts on here if you want to see some of the options for opening a NZ account before you arrive.

Alternatively, you could get your UK bank to transfer the balance to a NZ account once you set it up - but I believe that would be the more costly option in fees and a lower exchange rate.

Third option if it's not a huge amount is to get a Nationwide account with a cash card as they don't charge for taking money out in NZ and then you can take your money as and when you want it, but only up to your usual daily cash-withdrawl amount.

[Trigirl]

HIFX dont charge any fees for transferring money - they make their profits on the exchange rate (and still beat the banks)

we opened an account with westpac from the uk - very easy indeed - then transferred a bit of money for our first few months. we picked up our debit cards and activated the account as soon as we arrived. then when we wanted to buy a house we transferred the deposit and then a little while later the balance of our accessible cash - again using HIFX both times. we've left a small amount in a nationwide account for things like amazon orders.

[Super_BQ]

Why not consider something more simple and direct? Perhaps you could take with you a "Bank Draft" (in NZ known as a "Bank Cheque") ? Visit your bank and ask them to withdraw all the $ (and have it converted to NZ$ if you get a favorable exchange rate) into a single cheque/draft that is in your name. Close the account. Then deposit it here in NZ when you finally decide which bank to go with.

Note that this instrument note is far more creditable than a personal cheque as the $ is pretty much guaranteed. (it does not bounce).

Only drawback is you would lose bank deposit interest while you're looking to open a new account.

Also you'll have to declare it up arriving NZ Immigration/Customs since you're most likely to be bringing more than $10,000 worth.

[LesleyS]

Thanks Wiki, Trigirl and Super BQ for the advice:nice1.

All three options seem to make sense when I think about it logically.

Is Westpac a NZ bank then?

If we have to declare money upon arriving, with customs - will they charge us for this?

Kind regards

LesleyS:)

[Trigirl]

the main downsides of super bq's suggestion are that you wont get anything like a decent rate if you convert to $s that way and that you'll have to go through the process of opening the bank account once you get here.

its very easy to have the account set up and ready for you. you can open it by sending them a fax. that way when you arrive you just walk into the branch, show them your passport and pick up your debit cards.

westpac is one of the major banks here. the main others are kiwibank (state owned - like the post office), ANZ, BNZ, and ASB. all the main banks have a "migrant banking team" who are set up to help you - i only have experience of westpac but they were really good.

[Super_BQ]

Is Westpac a NZ bank then?

If you mean NZ owned the answer is nope. In fact all the major banks (ANZ, National, BNZ, Westpac) are Australian owned. Few years ago the NZ gov't found that to be a problem and started a state owned Kiwi Bank. IMO using tax payer's $ to fund a business that competes directly with private banks isn't effective (but that's beyond the scope of this thread).

You could keep the funds in the foreign currency as a draft/cheque and shop around here for the best rate. I would think it would be more convenient to shop around once you get in NZ - meaning shop around where you plan to stay (what flat?), and which bank branch is closest to you?

Find your best rate and show it around the banks in NZ to see if they can match it.

If we have to declare money upon arriving, with customs - will they charge us for this?

Not at all. It's just to satisfy international anti-laundering requirements. In the form of a cheque, there's no concern but if you brought say $100,000 cash in a shoe box, well they will ask where it came from. Simply check the right boxes on the form and sign. There is no fee that I know of.

[Jo Jo]

the main downsides of super bq's suggestion are that you wont get anything like a decent rate if you convert to $s that way and that you'll have to go through the process of opening the bank account once you get here.

its very easy to have the account set up and ready for you. you can open it by sending them a fax. that way when you arrive you just walk into the branch, show them your passport and pick up your debit cards.

westpac is one of the major banks here. the main others are kiwibank (state owned - like the post office), ANZ, BNZ, and ASB. all the main banks have a "migrant banking team" who are set up to help you - i only have experience of westpac but they were really good.


Trigirl's advice is spot on.

Personally, I'd never use a bank draft - there's just no need to now we have electronic transfers.

[zardell]

We used ASB Bank.

Spoke to their London Branch - Kate Lancaster on 021 7710 3592.

They opened a NZ account for us and we just activated it when we arrived in NZ.

Easy peasy.........give em a ring.

They give mid-range exchange rates too - much higher than tourist rates, plus they dont charge if transfers are over £30,000 or they charge £15 per transfer under £15,000

Easy peasy - give em a call

Julie

xx

[marcia]

lesley - we did the same as Julie (on her advice!!) opened an account with ASB, they open you two accounts, one in London, and one In NZ, we gathered all our money from the little pots we had all over the place into our Lloyds account, did a transfer to ASB in london, which costs £20, you can then leave all the money there till you 'like' the exchange rate they are offering, their rate is very competitive, they are not like a normal high street bank like Lloyds, they offer 1.5 cents less than the base rate. As long as you move amounts more than £30,000 at a time, there are no more charges. We have moved two lots with them now, £30,000 when we came over for set up costs, then on Monday (at the worst exchange rate there has been since we arrived!!!!!!) the money to pay for our house. We rang them Mon eve here which was mon morning there and the money was in our account here on Weds morning!

We chose these people because of the competative rate, (you also get good interest on the money when its sitting in London too!) and because the money is always in an account with OUR name on it, some of the companies like smartcurrency exch, have holding accounts where the money sits - we didn't like that idea!

When we arrived in NZ, we only came with a bit of NZ cash, the day after we got here, went into the local ASB branch with the letter London had sent with the account number etc, proof of identity, and we got the account activated and eftpos cards there and then, very easy.

Hope this information helps, if you want to know any more drop me a PM!

[zardell]

They give mid-range exchange rates too - much higher than tourist rates, plus they dont charge if transfers are over £30,000 or they charge £15 per transfer under £15,000




Sorry - they charge £15 per transfer under £30,000.......I tried to edit my previous post, but it wouldn't let me.

PM me if I've confused you........I can confuse you some more if you do ..!!.......:laugh

Julie

xx

[Super_BQ]

For most migrants, the modern electronic way of sending funds seems to be the most common. But each method has their pros and cons. To a new-comer to NZ (say from the UK), the bank draft does have it's purpose.

1) Closure of bank accounts upon departure. That is you can leave the UK severing all ties (severing any possible future tax liability in the UK). No more online hassles of trying to get the UK bank account closed (if you can?) from the NZ end.

2) Upon arrival, one can really analyse which bank they prefer that is suited to their ie. location of where they live. You could go online and visit all the banks to see which has the lowest bank fees, best exchange rates, etc. but, there's nothing like physically visiting each bank to know which is more convenient - ie available parking space to friendly staff to long line up queues?

3) Leaves no trail behind: That is, the bank cheque/draft is issued by the bank. Has no ties to which person's bank account # the funds came from and the bearer can only deposit it. Electronic Wire TT transfer all leave a paper trail behind making it convenient for the tax dept. to keep tabs on where you go.

Of course I don't advocate everyone to use this method, but at least it still is a viable option.

[zardell]

1) Closure of bank accounts upon departure. That is you can leave the UK severing all ties (severing any possible future tax liability in the UK).

3) Leaves no trail behind: That is, the bank cheque/draft is issued by the bank. Has no ties to which person's bank account # the funds came from and the bearer can only deposit it. Electronic Wire TT transfer all leave a paper trail behind making it convenient for the tax dept. to keep tabs on where you go.

.




Personally I had nothing to either hide from or run away from, but hey - each to his own........

Julie

xx

[jaycee]

Following on from Wiki's post, if you set a up a foreign exchange account (e.g. HIFX) you can convert money without transferring it anywhere. So you can exchange £s for $s without opening a NZ bank account first, if you wanted to do that. Although you have to agree what that total will be, you don't have to pay the full amount you're going to exchange when you set up the contract, so some of the money can still be earning interest in the bank, and you are guaranteed an exchange rate. That may turn out to be a good thing or a bad thing, depending on how the rates go, but at least you know how many dollars you have.

I'd say the most important thing is to shop around for the best rate - I don't mean by trying to predict the markets, but by looking at different companies. The difference between 2.6 and 2.7 doesn't seem like much, but if you're exchanging £30,000, it's $3000.

As for the bank draft - I'd be frightened of losing it!

[Super_BQ]

Personally I had nothing to either hide from or run away from, but hey - each to his own........

Neither did this person, who was a Canadian citizen travelling through the US.

http://www.cbc.ca/news/background/arar/

Moral story is that people in gov't also make mistakes (and the US has a big reputation of bullying other nations around). Mis-target a wrong civillian and the gov't ends up having to pay a $10 Million compensation package.

How does this relate to moving $ around from 1 country to another? Well probably nothing,

[zardell]

http://www.cbc.ca/news/background/arar/

How does this relate to moving $ around from 1 country to another? Well probably nothing,



Quite..........;) But a frightening tale nevertheless.

Julie

xx