[YSpringer]

Hi all,
Hope I'm posting this query in the right place, and thanks in advance for any help or advice you can offer. I'm moving to Dunedin (from US) in March for a 3-year biology research fellowship at U. Otago. Very excited about the adventures ahead. On the financial front, I'm a bit of a saver, and have some funds sitting in a savings account in an American bank earning next to no interest. With the dollar loosing so much ground and interests rates for NZ savings and CD accounts often over 10% (over twice US rates!), it seemed like a prudent choice to bring my funds along.

Any thoughts about this? If you pondered the same issue and decided to transfer your savings to a NZ bank, what did you find is the easiest and most economical means of doing this? Any big DOs and DONTs would be especially helpful. Many thanks!

[Nick88]

It's a tough question for anyone to give advice on, mate.

Yes the interest rates are significantly higher here, but those gains can be erased by currency fluctuations very quickly. You might have to do some research on the long term forecasts for the US$/NZ$ cross rate and decide for yourself whether you are willing to take the risk.

Another option is to keep it as US$ in an account here, I'm not sure what the interest rate would be, you would have to contact the bank (I recommend the ASB, personally). That way you may get a better interest rate and have immediate access.

I can't be more help without a crystal ball, I'm afraid.

[IanW99]

It's a tough question for anyone to give advice on, mate.

Yes the interest rates are significantly higher here, but those gains can be erased by currency fluctuations very quickly. You might have to do some research on the long term forecasts for the US$/NZ$ cross rate and decide for yourself whether you are willing to take the risk.

Another option is to keep it as US$ in an account here, I'm not sure what the interest rate would be, you would have to contact the bank (I recommend the ASB, personally). That way you may get a better interest rate and have immediate access.

I can't be more help without a crystal ball, I'm afraid.

I agree with Nick, of course if you can survive for a while without this money then you could keep an eye on the market and when the exchange rate is particulary favourable then move it.

When you come to move it back again then you would need to do the same.

You can make a lot more money by getting the exchange rates correct than worrying about any fees charged, but there is some risk e.g. may have to wait a long time for the needed rates and it's always possible that you will never get them?

Not sure I've seen a safe account with over 10% so be careful as some of the higher interest accounts may not be looking after your money too well.

For transferring, would suggest you look at companies such as xe.com, they actually show you the rate that you are going to get and have low fees, check out their demos to see how it all works.

Ian

[fruitfly]

[QUOTE=Nick88;176831]
Another option is to keep it as US$ in an account here, I'm not sure what the interest rate would be, you would have to contact the bank (I recommend the ASB, personally). That way you may get a better interest rate and have immediate access.

No point in keeping USD in NZ, the interest rate would be lower than the existing rates in US banks. The USD is already very low now, I guess it will rise in the very near future.