[Island Moose]

Here's a response I got from Westpac Bank regarding opening an account from Canada prior to my arrival in NZ. I believe the procedure will be the same for other countries as well. You must visit the Westpac website and download a copy of the Migrant Banking application forms (2-3 pages).

http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Open+an+account

Hi John,

Thank you for your email.

Most of our customers would like to open an account with Westpac prior to their arrival to ensure their funds has arrived safely, and close their existing bank account before leaving.

If you have a large amount of funds to transfer, this would be a good idea for you to look at.

Once you have applied to open account with Westpac, we will open an Online Saver account for you, which has high tiered interest rates. Our current Online saver interest can be viewed on Westpac webpage. (Currently 7.20%p.a. for amount over NZ$100,000)

Also, apologies for the delay, however, I have referred your RSP enquiry to another department, I will let you know of the answers once I have response from them.

Below is our information on opening account with Westpac prior to your arrival, which hopefully will help you understand opening account with Westpac.


If you will not arrive in New Zealand prior to the 6 month time limit you will need to post your application and send verified copies of you passport (verified by a lawyer, notary or solicitor) to the mailing address provided on the application. By sending the original you will discard the terms/conditions on the application stating you need to be here within 6 months and you have a limit of 2 deposits and no withdrawals.

If you arrive within the 6 months you may fax the application. If you choose to do this, all the terms and conditions stated on the application still apply.

Prior to your arrival we will open an Online Saver account for you. When you arrive in NZ we will set you up with a branch contact from your NZ destination that you can meet with. They will discuss account options with you and choose a current/transactional account that suits you. This comes with Debit cards issued instantly along with Phone and Internet Banking. Chequebooks are available on most of our current accounts and can be ordered at your validation interview. Chequebooks take around 5 - 10 working days to be delivered but as most of NZ uses electronic methods of banking, we have found this not to be a problem.

[kanatakiwi]

Thanks for that John. I would be interested in hearing what reply you get about your RSPs. (did you ask about RRSPs by any chance?) Also its true hardly anyone uses cheques here, if someone owes you money they ask you for your bank account number and make an online deposit into your account. My bank (ASB) calls it Fast cheque) and I was surprised how popular it is here. I havent used a cheque since I have been here.
Gloria

[Howie]

Good post! I'm with Westpac because I could open an account from the US, transfer my money and have it waiting for me when I arrived. Their migrant banking people have been realy great and I'm still with Westpac.

[Island Moose]

The bottom line with RRSP's from Canada, is that New Zealand will take them....but Canada won;t let them go!

If you cash out your RRSP's while in Canada, you will pay full income tax on the total, perhaps as much as 50%.

If you wait until you arrive in New Zealand, and become a "non-resident" of Canada (no home, no car etc), you can cash out your RRSP's and pay a 25% departure tax, not great but a lot better.

Keeping your RRSP's in Canada, making contributions or not, makes sense if you're going back someday...otherwise tax implications in Canada and NZ.

As a student for the past few years, making no money, I can withdraw a certain amount right away and pay zero tax, then take the 25% hit on the balance when I get down to NZ. Fact of the matter is that my RSP's are performing poorly, and the 7.2% interest rate offered in NZ is very tempting.

[Howie]

I have RRSP's in Canada, IRA's in the States and hope to soon have KiwiSaver in NZ. I have no idea where I'm going to retire, but it's a ways away, so I'm just going to leave everything where it is and make some tax accountant a lot of money when I finally have to figure it out when I retire. I guess having retirement savings in various countries is another way of diversifying!

[kanatakiwi]

Aarrgh. maybe i should just cash them in and have a big party!. I was going to be stay a Canadian resident, even while I am here, as I too might go back some day. And am not working here. If I do that am I allowed to withdraw from them just like I could when living in Canada?
I need to get some tax advice.
Gloria

[Super_BQ]

Compare the differences!

http://www.theglobeandmail.com/series/rrsp/2005/neat.html

The bottom line with RRSP's from Canada, is that New Zealand will take them....but Canada won;t let them go!


Naturally if you intend to go non-resident in Canada, you would lose these benefits outlined in that article.

I think the biggest benefit of the RRSP is the ability for the tax payer to carry-forward or back any unused portion of contributions. It's peged to the lessor of the maximum or 18% of your total taxable annual income.

With Kiwi Saver, really the $1000 or ($5000 if you wait long enough) does not do justice in getting a person into their 1st home.

BQ

PS: if you're good at savings, then why do you need the gov't to tell you how to save? The last thing we want is a pension scheme of those that paid 20 or 30 years ago but the the gov't relys on current (work force) contributions to pay current pensioners. Will Kiwi Saver go like this as Canada's CPP?