It isn’t always easy to transfer money to New Zealand from overseas. With technology advancing at such a rapid rate, there are new ways of transferring your money popping up every day. The problem is that with all this ‘convenience’ and ‘lower fees’, it can be somewhat overwhelming if you don’t know where to start. We’ve put together a short guide for you to help you get started on your decision. This guide will cover:
- Safety and Security around your transfer
- Cheapest way to transfer amounts
- Money saving tips and tools
You can use our comparison table to compare banks and providers you can use for international money transfers.
Safety and Security around your transfer
Choosing a safe and secure way to transfer your money is critical. Before you send your money overseas, make sure your bank or money transfer service has the following:
- Is registered with New Zealand Financial Services Provider (FSP)
- Member of the Financial Ombudsman Service (FOS)
Cheapest way to transfer amounts
Transferring larger amounts
If you are transferring more than $100,000 it is critical that you track down the best exchange rate from a company you know is safe and secure. Our picks for transfers of this amount would he he following:
- TorFX is one of the largest foreign exchange companies in the world and importantly, they consistently have excellent exchange rates, particularly for large amounts and no transaction fee
- HiFX is a close competitor and has very similar exchange rates for the higher amounts. It also charges no transaction fee for anything over $10,000
- OFX again is a very similar company with a strong online presence. No transaction fee applied to anything over $10,000
Buying or selling a property
Buying or selling property comes with a lot of fees and costs. A lot of people overlook the transfer of money back to New Zealand as one of the potential hidden costs. As these transfers are usually larger amounts, you can lose thousands if you don’t take into consideration the contributing factors when transferring money internationally. Safety and a competitive exchange rate are paramount in this circumstance.
- OFX is an ideal choice for these transactions because each customer has an account manager that can guide them through each step.
Sending smaller amounts of money to your family
Western Union is great for paying small amounts to family and friends. Unlike many other providers, they have a low minimum payment. They also take credit card and allow you to organize a cash pick-up if your family or friends wish.
Moving to New Zealand or coming back from overseas
Living and working overseas can be a life-changing experience. Unfortunately, moving the money back to New Zealand often isn’t. Loaded exchange rates and fees can reduce the amount you receive into your bank account in New Zealand.
- With the right foreign exchange specialist like TorFX, it is possible to achieve a spread of 1% – and even lower, reduce or remove fees, create a strategy for purchasing currency and access hedging tools.
Sending money back from an inheritance
Repatriating funds from overseas after a loved ones passing from overseas can be a stressful process. In this situation, consider using TorFX. They have a large global network of banking relationships. They also have a dedicated customer service team that have experience dealing with these type of transfers.
Selling internationally online
As it’s so easy to sell to customers using an online store, it is understandably the most popular way of selling business. However, when many businesses convert their currency, hidden fees are taken out and people are left being charged when they didn’t want to be. WorldFirst have a great solution for online sellers, so go to their website and research before you decide.
Receiving payment from overseas customers
If your overseas customers are paying you in foreign currency, the exchange rate you receive could be eating away at your profit margins. Using WorldFirst is a great alternative receiving money into your bank account. Their exchange rates and low fees will allow you to maximise your overseas receipts.
If you are selling goods in overseas markets, consider using OFX. They specialize in international payments and receipts for businesses. Each client has a personal manager and access to a range of useful products like Forward Exchange Contracts, Vanilla Options, Limit Orders and easy to use online payments platform.
You can read more about OFX here.
Money Saving Tips and Tools if you Transfer Money to New Zealand
There are lots of ways that you can save more of your money when you are considering transferring funds internationally. We’ve put together a few of these ways in the below list to give you an idea of what to look out for:
- Remember to research the information you will need for your beneficiary’s account – information differs per country so be sure you’re clued up on it.
- Wire Transfers Explained
- How to Work Out If You Are Getting Ripped Off
- Different methods of payment that are available to you from various companies. Remember to research as you might find it helpful to transfer via methods such as Forward Exchange Contracts.
- Remember to know how long an international money transfer can take – you don’t want to find yourself in an emergency and having to go through your bank because they’re quickest, but by no means the cheapest.
Olivia is a landlord and owns five properties globally. She has just sold her two bedroom apartment in Canada and plans to transfer the money back to New Zealand so she is able to start looking at properties closer to home.
Having read some articles about how difficult people have found it, Olivia made sure she was aware of the most affordable way to transfer CAD-NZD. After speaking to several people, they all recommended going through a money transfer company, of which there were a few to choose from.
She did her research and decided to choose OFX as not only was their exchange rate competitive, and she knew she would get the best deal with her large transfer, but she was also assigned an account manager that would help her through the stages of the transfer. This relaxes Olivia tremendously, as she knew that her money was in safe hands. Additionally, if anything were to go wrong, then she always had an expert on hand to help her.