Everything you need to know about moving to NZ

New Zealand banks generally welcome new customers, and opening an account is quick and simple - due, in part, to the less stringent money laundering rules in New Zealand.

Opening an Account

The documents you will generally need to open an account are photo ID (such as your passport) and proof of your address (such as a utility bill). You can also set up an account from the UK. You will be asked for your IRD number, but can supply it later if necessary - although any interest you earn will be taxed at the highest rate.

Interest Rates and Bank Charges 

New Zealand banks offer higher interest rates than their UK counterparts, but mortgages and other lending rates are a couple of percent higher than in the UK. There are charges on most accounts, some of them flat fees and others per-transaction fees. These could amount to around $15 per month. Some banks give you discounts on fees for receiving all your statements online or maintaining a specified minimum balance in your account. Be especially aware of fees if you are setting up a business account, as they vary widely.

Online Banking

Online banking is widely available, but unfortunately generally not as secure as in the UK. While fraud is comparatively rare, keep your anti-virus and spyware software up to date, avoid doing your online banking on public computers, and never supply your passwords to anyone.

Money Machines 

Money machines are widely available at banks, along main shopping streets and in shopping malls. You may be charged a fee of around $0.50 - $1 for using a card from one bank at another's ATM.

Eftpos

Eftpos is the widely available debit card system, which you can use almost anywhere. Some retailers also allow you to withdraw cash on Eftpos with a purchase, and there is generally no minimum purchase. A pin number is used rather than a signature.

New Zealand Government Bank Deposit Guarantee

New Zealand has instituted a government-backed bank deposit guarantee scheme to provide some certainty to depositors. Clients from approved banks are covered for one million dollars per depositor per institution. The guarantee, formally known as the Crown Retail Deposit Guarantee Scheme, runs for two years from 12 October 2008. For more information, check the New Zealand Treasury website.  

Before you leave the UK... 

• Make sure you let your UK bank know your new address before you leave the UK; they will generally be happy to send your statements to New Zealand at no extra cost.
  
• Ask your bank for the forms you need to fill in to have interest paid to your accounts without tax being automatically deducted.
• If possible, set up and test internet and/or phone banking before you leave.
  
• Keep at least one account open in the UK - it can come in handy, and it is hard to open an account in the UK once you have been out of the country for a while.
  
• If you think you may have lost track of any accounts, you may like to take a look at the Lost Accounts tracing service - it is free, and you can do it all online.

In Conclusion

New Zealand banks offer a wide range of services although they only tend to offer their own products which may not be the best in the market place or the most appropriate for you. As we are not tied to any single institution we can offer a range of solutions for mortgages, insurance, investments or pensions; so get in touch with us and we can discuss your requirements in more detail. For example, we have been able to negotiate better mortgage deals for clients using their existing bank than they were able to get approaching the bank themselves.

Read on for more information on which New Zealand bank we recommend for their reasonable fees, great service and extensive network of branches.