[JJG]

A few questions for them who have got the t-shirt.

Do we open account from the UK or do we wait till we arrive?
Which bank do you recommend?
Who do you recommend to transfer the pounds with?
Where to leave the pounds until transfer?

Cheers

Jonathan

[JJG]

Nobody:confused:

[jubjub]

Sorry Jonathan, was going to answer this yesterday, there are varying opinions and options around.

We opened an account with ASB via Commonwealth bank office in London, it sets up a £ and a $ account, and its childs play to transfer between the two and you get a good rate, you just need internet banking on your existing UK account.

www.asb.co.nz

As for when to transfer, dunno, really its up to you to guess where the exchange rate is going to go, and then decide whether you are better off with £ earning a lower interest rate or get $ and have a higher interest rate... its a gamble.

[Richnat]

Hi Jubjub

I was wondering if it possible to open a NZ account whilst still in Europe and indeed it looks like it can be done. I wonder if it's possible from here in Germany...I'll have a look.

decide whether you are better off with £ earning a lower interest rate or get $ and have a higher interest rate.

It may be my maths but I think you would always be on a winner going with the higher interest rate.

e.g. if I have EUR 20000 at 2.5% (normal over here) or the equivalent $NZ38,800 at 7% you will always get more interest out of the NZ account i.e. EUR 500 (~ $NZ 971) on the EUR account versus $NZ 2,695 (~ EUR 1,387) on the $NZ account.

So I would reckon that it really boils down to whether the charges incurred eat up your win on the interest or not. If we get the chance we will definitely scoot our money into a NZ account.

Cheers

Rich and Nat

[diforsyth]

I was wondering if it possible to open a NZ account whilst still in Europe
Yes you can, most NZ banks will offer Migrant Banking - just look on the internet. There are threads on here for opening accounts and transferring money - search in Money Matters.

As for earning interest at different rates, remember that you will probably have to pay 38% tax on your interest on NZ accounts.

[Trigirl]

It may be my maths but I think you would always be on a winner going with the higher interest rate.

If this was the case everyone would do it. I mean everyone - not just people moving to NZ but the big investment banks too.

The bit you are missing is the future movement in exchange rates. If the NZD continues to weaken then you may still be better off with the lower interest rates here but being able to buy more NZD for your EUR at a later date.

Just a thought
Mandy

[jubjub]

Mandy, thanks for that, was just trying to think what to say to explain it better, you did it for me!

[JJG]

Thanks for that Sal :nice1

[Richnat]

The bit you are missing is the future movement in exchange rates. If the NZD continues to weaken then you may still be better off with the lower interest rates here but being able to buy more NZD for your EUR at a later date.

Thanks! You're right of course I had underestimated the effect the exchange rate could have. As for the 38% tax - ouch. Just goes to show that if it looks too good to be true it probably is ;)

Cheers everyone. Once again the community has helped us straighten out something we'd been umming and ahhing about!

:cheers

Rich and Nat

If we get the chance we will definitely scoot our money into a NZ account.
...but then again maybe not ;)

[markynz]

Hi there - just to give my input if I may.

We opened an account 3 months before we arrived in NZ to take advantage of the higher interest rates out here ( 7% - you can even get 7.5% at some local credit unions ). 3 months was a cutoff date as you must verify your details 3 months after opeing your account at an NZ branch.

we used ozforex(transfers) for transfering our money because you get the actual median exchange rate and not the rip off ones that banks offer. They charge only £7 for any amount and you also have to pay £20 for a chaps payment through your bank. I have used them for a large amount and would recommend them. You could call them anytime if the web process was too much for you and were extremely helpful. I will use them again if the need arises. The transfer took about 2 working days to show in your NZ account.

We are with the National Bank, who I must say have fell over themselves to be helpful to us. Very impressed with them, and always friendly people staffing the desks. Beware that NZ banking is not free like in the UK and bank charges are a reality unfortunately. Look for an account where the charges do not hit so badly ! The online banking is also excellent, purchases or deposits appear immediately online. Try to avoid using cheques and use the EFTPOS system ( similar to chip and pin ) as much as possible. Cheques or automatic payments often seem to incur charges

Another thing I'd like to add is that I studied the exchange rate a while back and over the years I noticed that the rates fluctuated around summertimes. While it was not always the case, the £ rates seemed to flow between $2.50 - $3.30 peaking in favour of NZ ( low UK exchange rate ) in their summer and peaking in favour of the uk ( high UK rate ) in the uk summer. I wouldnt be surprised to see the rates start to drop again towards the $2.50 level they were at March/April last year as NZ approaches summer.

Hope any of this helps,

Mark

[JJG]

Another thing I'd like to add is that I studied the exchange rate a while back and over the years I noticed that the rates fluctuated around summertimes. While it was not always the case, the £ rates seemed to flow between $2.50 - $3.30 peaking in favour of NZ ( low UK exchange rate ) in their summer and peaking in favour of the uk ( high UK rate ) in the uk summer. I wouldnt be surprised to see the rates start to drop again towards the $2.50 level they were at March/April last year as NZ approaches summer.
Mark

:mad: If that does happen then it looks like I will be waiting to the next UK summer to change over the pounds.

[Avalon]

We used ASB and opened an acoount from London.
I was not impreesed with our Migrant bank manager, and was goint to jump to another bank - but found a really good manager in Welly - worth staying for. Do bear that in mind - much of your experience with banking here could come down to your "Persoanl reationship manager" - and its worth shopping around for a good one that will help you out and talk you through things. You dont have to stay with the same bank, and even within ASB for exapmle - If I dont like the manager - its expected that I woudl change to a different one.

We always use Hifx to transfer money. No Charges. And No chaps charge (not that I even know what that is! - but a total charge of £27 is way too much in my book - thats nearly $80 (or 22 coffees :wah ). Its worth regisetring with a few money transfer companies (should be free - if not - dont touch them), and then when you want to transfer - ask all of them for a quote. Get not only the rate - but the Total amount in $ that you get at the end. Then take off any fees that are going to be charged at the UK end. And go with the one that gives you the most $$$$ for the least amount of hassle. Have to say - im really, really happy with Hifx. They are good value, easy to use, and GREAT at explaining money transfers and excange rates!

[voxel]

I opened an account with Westpac with no fixed NZ address (they charge $3.50/month).

My co-workers went with Kiwibank - they don't charge any monthly fees if you have more than $4000NZ in it. However, I couldn't open account until I had a fixed NZ address + work permit/visa/PR. I plan to switch to them eventually...

Overall, the banking system seems to be fairly efficient here - everybody biller supports direct debit and automatic payments.

[markynz]

Hifx ? - not heard of them. Interesting though. I would be very sceptical of a company that does not charge anything for its services. Why bother operating if thats the case ? Where would their profit come from ? The only way that these companies could earn money is if they offered you a lower exchange rate, pocketing the remainder - or hold onto your money for a week or two and pocket the interest. I do know that transfers(ozforex) offered a rate that was within a cent of the exact median exchange rate ( when it was 2.96, we got 2.955, and not the 2.76 as offered at the bank ). As for £27, well, when you get a great exchange rate and transfer over tens of thousands of pounds, the gain in the exchange rate more than compensates for that.

[Avalon]

Hifx ? - not heard of them. Interesting though. I would be very sceptical of a company that does not charge anything for its services. Why bother operating if thats the case ? Where would their profit come from ? The only way that these companies could earn money is if they offered you a lower exchange rate, pocketing the remainder - or hold onto your money for a week or two and pocket the interest. I do know that transfers(ozforex) offered a rate that was within a cent of the exact median exchange rate ( when it was 2.96, we got 2.955, and not the 2.76 as offered at the bank ). As for £27, well, when you get a great exchange rate and transfer over tens of thousands of pounds, the gain in the exchange rate more than compensates for that.
Well - of course they dont do it out of the goodness of thier hearts - but then I didnt for one minute suggest they did! ;) Nor am I quite such an idiot as to think that that were not making some money out of me somewhere ;)

They make thier money on the difference between the rate they buy at and the rate they sell at. Same as everyone else. Its called profit margins i think.

However - they dont charge EXTRA on top of that as most banks and some other forex companies do. I pay them via internet billing from my UK bank account - to thier Uk bank account - so it costs nothing to do that.

They certainly dont hang onto the money. As soon as it gets from my UK bank acoount to thier uk bank account - they transfer. The UK banking system of course does some dodgy accounting with my money in the few days that takes - but ho hum - life isnt perfect.

Like I said - you have to compare and go with who you think gives you the best deal - the most help, the best advise and explanation, and are the easiest to deal with.

For me thats Hifx - and I get more coffee ;)

I for one dont see that lack of charges is anything to be sceptical about - Hifx will gladly explain how they make thier money. They dont try to hide it - if they did - I ceratinly would not be on here recommending them to anyone. In just about every Financial company I have so far had dealings with - you either pay a fee or pay commision. With quite a few - they try to charge both - which I personally do not aggree with. But thats just me.

[Avalon]

) offered a rate that was within a cent of the exact median exchange rate ( when it was 2.96, we got 2.955, and not the 2.76 as offered at the bank ). .
Hifx are also within a cent or two of the rate - depending on the size of transfer. I transfer small amounts so get about 2c off.

[markynz]

Hmm, ok, well I did'nt know about them. Maybe I will have a look at Hifx at some point. Not being an expert in the field you know !
Ozforex were recommended to me by someone else on this site months back.
Oh, well, whats done is done, thanks for the advice.

[JJG]

Interesting discussion with some good advice.
Keep it coming guys :nice1

Jonathan

[Avalon]

Jonathan,

Something which is happening right now - and is worth being aware of is that fee free banking is finally coming to NZ.

Its been here a while with the proviso that you keep minimum balances, often $3k-5k, but now some of the banks are offering no transaction fees on thier current accounts. And in some cases - you can get no monthly base fee by opting not to be sent paper statements. Im not so keen on that idea - but thast because for me, the statement arriving tells me its time to balance my accounts. You have always been able to negotiate your fees here, but it has tended to rely on having a lot of business with the bank (savings or mortgage), but this change means the fee free banking is open to more people :clap not just those of us with a fair amount of money.

[gotourvisa]

A few things to check on your money you have left behind.
Check you can keep your account with an overseas address.
Also make sure you can take out the full amount as some banks have a small dailly limit.
For me Abbey filled the bill.
Also when you get here you can not access your internet bank account until you get on a secure computer not one that is open to the public. Also as soon as you get a tax number let them know as they will charge maximum tax until you let them know.
Best of luck.
Nigel

[JJG]

Thanks Avalon,
Yeah I see they are starting to compete for our business.
I would like to see them offering the full UK service for no fee though :clap

cheers
Jonathan

[Avalon]

Thanks Avalon,
Yeah I see they are starting to compete for our business.
I would like to see them offering the full UK service for no fee though :clap

cheers
Jonathan
:D Hey - you may find that once you get used to a few "Oddities" about the system here - you even get to like it!

Some of it I still find clunky and awkward (you cant use Eftpos over the phone or internet the same way you can with switch - you need a credit card), but one area that really wins is where you have a good and friendly manager. A real human being! Mine has been brilliant - and helps me get round some of the more awkward rules and regulations!

Take a bit of getting used to - but really it does start to wear off on you a bit :D

[JJG]

Looks like we are going to need a credit card aswell then. :yes

[Diny]

:
but one area that really wins is where you have a good and friendly manager. A real human being! Mine has been brilliant - and helps me get round some of the more awkward rules and regulations!

Take a bit of getting used to - but really it does start to wear off on you a bit :D


Same here !! We have a personal banker at the ANZ in Palmerston North. It is so refreshing be able to direct dial him instead of having to go via Bombay!

He is very friendly, very helpful and even rings us every now and then to see if we need anything. Yeah I know he only contacts us because it means more business for him - but I can live with that.

Diny

[GeordieLass]

Something which is happening right now - and is worth being aware of is that fee free banking is finally coming to NZ.


Interestingly, around the same time as UK banks are trying to move more of their customers onto fee paying accounts!