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Financial Conundrum

Financial Conundrum

Old Nov 5th 2012, 1:16 am
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Default Financial Conundrum

Kia Ora!!

I am about to come into a little bit of money back in the UK. I am not sure what to do with it. Myself and the OH are saving up our deposit for our house. We have worked out we can do it in about 2 years. Now the money that I will be getting in the UK and then transferring it over will be about 2/3 of the deposit.

My question is, Do I set up a saving account in the UK, Transfer it into that and leave it for 2 years to rack up the interest, then when we have the rest of the deposit transfer it over to NZD and take the risk that the xchange rate might change and I wont get roughly double, or do I transfer it all over straight away and bung it into our savings account here which has an interest rate of 4%.

I don't really deal with the money side of us, the OH does so I don't really know what to do. If anyone has any suggestions or has had to deal with the same thing I would love to hear from you.

Much Love!!
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Old Nov 5th 2012, 2:53 am
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Default Re: Financial Conundrum

Originally Posted by tattoobarbie View Post
Kia Ora!!

I am about to come into a little bit of money back in the UK. I am not sure what to do with it. Myself and the OH are saving up our deposit for our house. We have worked out we can do it in about 2 years. Now the money that I will be getting in the UK and then transferring it over will be about 2/3 of the deposit.

My question is, Do I set up a saving account in the UK, Transfer it into that and leave it for 2 years to rack up the interest, then when we have the rest of the deposit transfer it over to NZD and take the risk that the xchange rate might change and I wont get roughly double, or do I transfer it all over straight away and bung it into our savings account here which has an interest rate of 4%.

I don't really deal with the money side of us, the OH does so I don't really know what to do. If anyone has any suggestions or has had to deal with the same thing I would love to hear from you.

Much Love!!
Flip a coin, its the best predictor of the forex future vs interest return you will get.
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Old Nov 5th 2012, 3:01 am
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Default Re: Financial Conundrum

If you like certainty ... change it now.

If you like to gamble ... change it in a couple of years.

Of course, either decision could be the right one or the wrong one.

It will be you that makes the decision.
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Old Nov 5th 2012, 3:59 am
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Default Re: Financial Conundrum

You may find you have difficulties setting up a new savings account in the UK. It may have to be an offshore account.

Not sure that anywhere racks up the interest TBH but your money will be easier to deal with here.
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Old Nov 5th 2012, 4:09 am
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Default Re: Financial Conundrum

So transfer it here (HiFX) bung it in a savings account and silently abuse the bank big wigs for the falling interest rates.

TY guys
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Old Nov 5th 2012, 4:34 am
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Default Re: Financial Conundrum

NZ forex is user friendly & you control this yourself online. You can set a rate that you would accept etc.

Nationwide International for an offshore a/c.


You are OK to set up an account with them. You'll need to send ID and an explanation of where the funds have come from . ( money laundering)
You can also set up a nominated account etc for when you want to transfer these funds to NZ via a forex.
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Old Nov 5th 2012, 5:40 am
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Default Re: Financial Conundrum

what is an offshore account. It sounds dodgy to me. very cuban cigars and yachts in the virgin islands.
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Old Nov 5th 2012, 6:08 am
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Default Re: Financial Conundrum

Originally Posted by simonsi View Post
Flip a coin, its the best predictor of the forex future vs interest return you will get.
Yup, I 100% agree with that.
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Old Nov 5th 2012, 6:18 am
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Default Re: Financial Conundrum

Why not hedge your bets and do a bit of both, half and half or drip feed it through when the going looks good? It doesn't need to be all or nothing.
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Old Nov 5th 2012, 7:40 am
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Default Re: Financial Conundrum

Originally Posted by tattoobarbie View Post
Kia Ora!!

I am about to come into a little bit of money back in the UK. I am not sure what to do with it. Myself and the OH are saving up our deposit for our house. We have worked out we can do it in about 2 years. Now the money that I will be getting in the UK and then transferring it over will be about 2/3 of the deposit.

My question is, Do I set up a saving account in the UK, Transfer it into that and leave it for 2 years to rack up the interest, then when we have the rest of the deposit transfer it over to NZD and take the risk that the xchange rate might change and I wont get roughly double, or do I transfer it all over straight away and bung it into our savings account here which has an interest rate of 4%.

I don't really deal with the money side of us, the OH does so I don't really know what to do. If anyone has any suggestions or has had to deal with the same thing I would love to hear from you.

Much Love!!
We have money in the Uk and the same problem. You could stick it in an offshore UK acct but I understand the offshore bank guarantee scheme is not as weighty as the one in the UK.

You need to ask yourself is it worth cashing in at 2 for 1 and getting about double the interest in Nz over what you and I are getting/will get in the UK. In 2 years time the pound could be 1 for $1.7nz and not the 1 for $2nz we have today. By contrast it could be 1 for $2.3nz? Who knows? Nobody. You me and the rest of us need to make a decision on what we feel will happen over the next few years in the global market.


What ever I decide to do will be wrong. When it comes to money this old fool and his wonga are always parted!!!!
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Old Nov 5th 2012, 7:43 am
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Default Re: Financial Conundrum

Originally Posted by BEVS View Post
You may find you have difficulties setting up a new savings account in the UK. It may have to be an offshore account.

Not sure that anywhere racks up the interest TBH but your money will be easier to deal with here.
I can tell you if you don't have an acct ALREADY in the Uk it will have to be an offshore one. NO UK BANK will allow you to open an acct IF you are NOT resident in the UK. If you set up the acct in the UK THEN left you are fine. We had one before we left the Uk which we kept but we wanted to open another and I tried everywhere but was told 'no UK address no acct'. I guess you could always fib.
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Old Nov 5th 2012, 7:48 am
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Default Re: Financial Conundrum

Originally Posted by tattoobarbie View Post
what is an offshore account. It sounds dodgy to me. very cuban cigars and yachts in the virgin islands.
An account that is out of the Isle Of Man, Jersey or maybe another little island off the Uk that is not part of the Uk banking system.

It is a bit risky as if the shite really hits the fan and the offshore bank falls over there is not the funds for the bail out you would get if your money was in a UK bank. Even if the funds were there they are less than in the UK.

I think the UK scheme pays out 85K gbp per acct holder but the offshore ones are only 50K gbp....much less.
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Old Nov 5th 2012, 8:02 am
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Default Re: Financial Conundrum

Originally Posted by Genesis View Post
An account that is out of the Isle Of Man, Jersey or maybe another little island off the Uk that is not part of the Uk banking system.

It is a bit risky as if the shite really hits the fan and the offshore bank falls over there is not the funds for the bail out you would get if your money was in a UK bank. Even if the funds were there they are less than in the UK.

I think the UK scheme pays out 85K gbp per acct holder but the offshore ones are only 50K gbp....much less.
Am I right in thinking there is no scheme here in NZ that protects your money or are there any banks that offer some form of guarantee?
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Old Nov 5th 2012, 8:40 pm
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Default Re: Financial Conundrum

I might try the half and half idea. or the safest place could be under my matress!! lol
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