Steve_B
21st February 2009, 06:56 AM
This subject has been touched on before but I'm trying to get some definitive answers on a few questions before I jump in with both feet. It's worth noting that our timeframe for moving to NZ could be anything from 6 to 18 months.
I'm setting up two NZ based bank accounts via HSBC on Monday; one Stirling and one NZ$. The process appears to be painless as all I have to do is show proof of identity (passport) to my branch here in the UK. Within ten days I will then have complete online access to those accounts in the same way as I have for my UK accounts. Not being a NZ resident doesn't appear to be an issue with HSBC unlike Westpac who allow deposits in NZ but no withdrawals until proof of NZ residency has been confirmed. This would require a visit into a Westpac branch with residency paperwork in hand. HSBC do not require you to be a resident to bank in NZ and therefore suits our needs.
It's my intention to lock-in the exchange rate when it suits us, i.e if and when the rate hits $3 to the £, by using HiFX to carry out the transaction. Should the rate then drop before we actually move to NZ permanently, or if emigration plans change completely, then using HiFX, I would carry out the same process and convert NZ$'s back into Stirling.
I've been watching the rate for probably 18 months now and know that a rate of $3 to the pound is about the best it's going to get. If it never hits that rate then all bets are off anyway so this is purely a forward thinking exercise to maximise the potential exchange rate in advance. Add to this that HSBC NZ can offer a return of c4% interest, as opposed to c2% in the UK, on money held in NZ bank accounts it all seems to be a win win solution.
However, I can't help but think that I'm missing something.
I'm not sure, for instance, if tax will be deducted in NZ on interest or if I will receive a gross amount and any tax owed to the HMRC will then have to be declared here in the UK on my tax return. I'm hoping that it's the latter. HSBC are looking into this aspect for me.
Other than the rate going to something above $3 after I've made the exchange, a chance I'm willing to take, am I missing something simple here? Also, if it is this simple, then why don't all hard-pressed savers in the UK chase the better interest rates around the World in this way?
Steve
I'm setting up two NZ based bank accounts via HSBC on Monday; one Stirling and one NZ$. The process appears to be painless as all I have to do is show proof of identity (passport) to my branch here in the UK. Within ten days I will then have complete online access to those accounts in the same way as I have for my UK accounts. Not being a NZ resident doesn't appear to be an issue with HSBC unlike Westpac who allow deposits in NZ but no withdrawals until proof of NZ residency has been confirmed. This would require a visit into a Westpac branch with residency paperwork in hand. HSBC do not require you to be a resident to bank in NZ and therefore suits our needs.
It's my intention to lock-in the exchange rate when it suits us, i.e if and when the rate hits $3 to the £, by using HiFX to carry out the transaction. Should the rate then drop before we actually move to NZ permanently, or if emigration plans change completely, then using HiFX, I would carry out the same process and convert NZ$'s back into Stirling.
I've been watching the rate for probably 18 months now and know that a rate of $3 to the pound is about the best it's going to get. If it never hits that rate then all bets are off anyway so this is purely a forward thinking exercise to maximise the potential exchange rate in advance. Add to this that HSBC NZ can offer a return of c4% interest, as opposed to c2% in the UK, on money held in NZ bank accounts it all seems to be a win win solution.
However, I can't help but think that I'm missing something.
I'm not sure, for instance, if tax will be deducted in NZ on interest or if I will receive a gross amount and any tax owed to the HMRC will then have to be declared here in the UK on my tax return. I'm hoping that it's the latter. HSBC are looking into this aspect for me.
Other than the rate going to something above $3 after I've made the exchange, a chance I'm willing to take, am I missing something simple here? Also, if it is this simple, then why don't all hard-pressed savers in the UK chase the better interest rates around the World in this way?
Steve