[mmcguire2020]

Hi, I will be moving to NZ in December via WHV then switching over to PR via family stream. I have about $7,000 USD should I just keep my money in USD in my bank account here in the states and access my money with my debit card? or should I just open a NZ bank account and transfer all my money? what would be more beneficial :confused: sorry if this is a stupid question but I seriously don't know what I should do. Thanks in advance:D

[benhila]

Hi

Using your debit card to access the money is generally more expensive than transferring it to an account in NZ because you pay a percentage to your card's company, the bank to which the ATM belongs, you get a poor exchange rate etc. If you keep your money in a savings account in NZ you are also likely to get a far better rate than the one you receive at present in the US (currently around 8+ %). On the other hand, if the USD will strengthen against the NZ$ you may be better off keeping your money in USD until you can get more NZ$ for them. In conclusion, there are no 'right' and 'wrong' answers, it is a matter of looking at exchange rates, interest on savings rate and debit card related charges and adding up the numbers!

Hila

[mmcguire2020]

Thanks for your reply :) I guess it may be better just to keep my money in NZ then. Plus I can access a local branch if I have issues so it makes sense. :yes

[Rabbit]

Analysts suggest two NZ dollar rate cuts are comming, one in September and the other perhaps in December. Once this happens the NZ Dollar will decline. In terms of the US Dollar there is global concern that it is too low, hence high oil/commodity prices etc.

It may be worth you opening an NZ account in December and then transfering your US dollars then.

Some high-interest accounts require a minimum balance in NZ to avoid bank charges. So you might want to defer opening an NZ account until you are ready to transfer your funds.

Without a crystal ball, my gut feeling is that by December the NZ Dollar will have declined somewhat due to interest rate cuts and that the US Dollar will have appreciated.

Also, use a good currency broker e.g. someone like Hifx to transfer your funds so you get a good rate.

Just my two cents, and please note I am not a financial advisor.

Rabbit