sam_79

Hi There,

I was wondering if you open a Bank's account in any of NZ banks while you are off shore, would your savings have any NZ tax applied?

We are planning to move to NZ next year, and I've seen that it's good idea to open an overseas account in order to setup and maintain a credit history before moving permanently there.

Any suggested Banks in NZ from those who have done that before ?

Thanks for your comments

MrsFychan

never been asked about credit history and we have a mortgage and credit card. we set up a bank account with ANZ before we came over purely so we had somewhere to transfer money to. It was not a savings account and I'm not sure if you can open a savings account off shore? all anyone has ever asked for is 3mths worth of wage slips (from job here) and employment contract and that was for the mortgage.

MegMac

My husband has been in Auckland for 3 weeks and only opened a bank account a week before he left.

He has already been given a credit card and has been told by his bank he can get a mortgagte straight away.(Not that he wants one right now) No credit history necessary.

sam_79

Thanks MrsFychan, I am not sure if I can open savings account but will check with the ANZ branch over here. What type of account they offered you in order to manage your money transfer into there? were there any tax or fees applied?

sam_79

thank you for the information MegMac

MrsFychan

we just opened a standard joint account and then when we got here we have opened additionally saving accounts off it. We use HiFx for transfers and over certain amount you do not pay any fees

Pigdog

Hi Sam79

We opened an account with ANZ and transferred money with TorFX from UK. We land in NZ in October, ANZ have bank cards ready for us on arrival. They have already offered us a mortgage based on our NZ income. No mention of NZ tax being charged. ANZ suggested a Savings Account as the interest is higher.

jmh

Any interest earned will have withholding tax deducted, but you won't be taxed on the actual capital - not sure whether that was what you were asking.

I opened a Kiwisaver account and transferred my GBP into it from the UK and then went in when I arrived to set up the actual accounts I needed. Once you have an IRD number it will be applied to your account and the proper amount of tax will be deducted from interest earned.

I don't recall any fees being charged (I use xe.com for amounts under GBP8000). I chose Kiwisaver because it seemed to have lower or no fees compared to others I looked at online.

When I looked, most major banks had migrant banking services - you don't need to use them to transfer the money, just set up an account and use someone like HiFx or xe which gives a better rate. I don't know TorFX - could be a good one too since it's been recommended.

sam_79

Thank you guys for your comments..that was so informative

Quinna

100%

You can easily save 2-4% - To help choose the right one though consider the minimums they allow. You also want to look at if they are an internet or phone based service - some are phone only in Australia and NZ at the moment - for some this is an advantage other would prefer internet.

Finally, I recommend using a service that has an office in Australia or NZ so that you can pick up the phone and speak to someone down there. Rates are likely better too because they will be dealing with more GPB/NZD transactions. (Pretty much all have offices in the UK )