Ways to Save When Making Money Transfers to Hong Kong

What will this guide cover?

Sham sui po, Hong Kong at night. There are number of reasons for sending money to Hong Kong from New Zealand. And it isn’t always the easiest thing to do. We know that you would like to receive the best value for your transfer, which can be hard to find given the choices you are bombarded with. Most of these methods incur high fees, leaving you wondering why you’ve lost so much of your hard-earned money in transition. Well, not to worry, we’ve put together a simplified version of the options we think are best.

For a quick comparison table of exchange rates and fees, click here.

This guide will look at reasons for sending money to Hong Kong, as well as comparing different options you have for doing so.

  • Personal transfer – sending money to family or friends in Hong Kong
  • Business transfer
  • Buying or selling a property in Hong Kong
  • Studying Overseas
  • General costs of sending money to Hong Kong
  • Your options to send money to Hong Kong
  • Information you’ll need for the transfer
  • General information

If you’re transferring money to Indonesia instead of Hong Kong, our article here can help you out. Alternatively, if you are making a trip to Hong Kong and are looking at ways to save money, you can read this article on tips on budgeting.

Personal transfer from New Zealand to Hong Kong

You can set up a personal transfer from New Zealand to Hong Kong through a number of methods:

  1. Use your bank: Not all banks will support the Hong Kong Dollar (HKD) but all will accept transfers in US Dollars (USD). They will generally charge you a high international transfer fee, as well as an uncompetitive exchange rate, but it is an option.
  2. Use money transfer companies: These companies will offer you a better exchange rate and lower fees. Here are some providers that transfer money from New Zealand to Hong Kong:

Business transfer from New Zealand to Hong Kong

If your business is sending money to Hong Kong from  New Zealand and Hong Kong, there are two critical things you must consider when finding the best option:

  1. The exchange rate margin: This is the difference between the wholesale exchange rate (www.xe.com) and the rate you receive.
  2. Business products they offer such as forward exchange contracts, foreign currency accounts and limit orders.

You can use any of the money transfer companies listed above if you wish. Our choice for business transfers to Hong Kong is HiFX. Their exchange rates and zero fee structure will allow you to maximise your overseas receipts or payments. They also offer Foreign Currency Accounts which are helpful if you would like to hold the funds in a foreign currency and exchange them at a later time.

Buying or selling property in Hong Kong

If you are looking to buy property in Hong Kong, or have sold your property in Hong Kong and need to send the money back to New Zealand, we recommend that you look for a provider that has a strong presence in both countries. This will give you local support either side, as well as the flexibility you may need leading up to the settlement.

Our choice would be TorFX for property settlement transfers, as you (the customer) are assigned a local account manager that will have a strong global support network to guide you when needed.

Studying overseas

As much as we would like them to, tuition fees aren’t getting any cheaper. Annual payments to universities or other education providers, along with all other expenses, can really add up, particularly abroad. As these payments can be large, you need to know the best method of payment before moving your funds.

  • For larger payments, you should keep an eye on the exchange rate you’re getting as this will largely affect the amount of money you will get in the foreign currency at the end.
  • For smaller payments, you should keep an eye on the transfer fees.

There are many methods of transferring funds abroad. We would suggest HiFX as they are great for saving on those hefty costs when paying bills.

General costs for sending money to Hong Kong

Time to put together the fees. Calculating the costs can be difficult, as nearly all fees, charges and exchange rates are dependent on how much are you sending, the method of sending and the method of receiving the funds. The most common fees are as follows:

  1. A transfer fee
  2. Exchange rate margin: the different you pay between the wholesale exchange rate on xe.com and the rate you will actually get
  3. Bank fees: The fees that your bank will charge for sending the money to the correct account overseas.
  4. Receiving bank fees: The fees the receiving bank will charge you for converting into the correct currency.

Your options to send money to Hong Kong

There are various methods of sending money to Hong Kong:

Via your bank

Using your bank is an easy and quick way to transfer money. Depending on the bank the money can be successfully received within 3-5 business days. Generally, banks will have uncompetitive exchange rates which make them unattractive if you’re sending large amounts of money abroad.

Check with your bank and research the fees and exchange rates based on the amount you plan to send over.

Paypal

Paypal is a convenient and highly popular way of transferring money abroad. It’s also by far the quickest with transfers being completed within minutes (depending on the type of transfer). It is great for smaller amounts (under $1000NZD) as although the exchange rate is equal to those of banks, the fees are slightly less. It’s particularly handy if you are paying from your own Paypal account directly into another.

A money transfer company

There are an overwhelming amount of money transfer companies out there. In general, these companies are your best option when transferring larger amounts of money (anything between $1000 – $1,000,000NZD). Different companies will have various minimum and maximum amounts set, and the transfer itself will usually take around 1 business day longer than banks or Paypal.

You will need to create an account with the company before sending the money – you can do this online:

  • Register your details on the website – you will likely need I.D handy
  • Account needs to then be approved, and you’ll get your login details
  • Enter the bank details of where you are sending the money i.e. the ‘Beneficiary’ or ‘Recipient’
  • You will get a quote based on the fees and exchange rate for sending the money
  • If you are happy, confirm the details including the given rate.

Information you’ll need for money transfers to Hong Kong

You’ll need the details of the bank account you are sending the money to i.e. the Beneficiary or Recipient details. These details will be:

  • Account name of your Recipient
  • Their address
  • SWIFT code

SWIFT codes

The Swift codes for the biggest banks in Hong Kong:

HSBC : HSBCHKHHHKH

Bank of China (Hong Kong) : BKCHHKHH

Hang Seng Bank : HASE HKHH

Standard Chartered Bank : SCBLHKHHMAC

 

General Information

There are pros and cons to every method of payment you choose. Paypal and money transfer companies like Western Union are your fastest options, with transfers being completed within minutes. While these options are convenient, they will not offer you competitive rates. Banks will take 1-2 business days and other money transfers companies will take roughly 2-3.

Check the details of your chosen method, as all will have their own restrictions, fees and charges. Banks and Paypal will not have a minimum amount, but most money transfer companies will.

Case Study

Peter moved to Auckland, New Zealand five years ago for his job. Over the past five years, Peter has tried numerous ways of transferring money back to his home in Hong Kong. He wants to support his family and help pay for bills at his residence he still owns.

Unfortunately for Peter, there have been occasions where a new method he has tried resulted in him losing a lot of his money in transition due to poor exchange rates and fees. Peter has just discovered TorFX. With their no fee structure, he now avoids transaction charges and gets a better exchange rate than his bank would offer. He simply signs into his account and processes his transfer from NZD-HKD from his New Zealand account to his Hong Kong account – easy! Peter doesn’t have to worry at all whenever he flies home now, knowing all of his money is safe and transferred.

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