Next door is calling and you’ve decided to move from New Zealand to Australia, what a thrilling time ahead! Before heading off on your new adventure, it’s important to decide how you’re going to manage your finances, particularly if you’re going to be sending savings from NZ to Australia.
Before you jump and move your life savings from NZ to Australia, you need to take the time to work out the best and most cost effective way to do it is. Our guide is designed to help you find the best way to transfer a large amount of money from New Zealand to Australia and show you how you can save.
While this might be the last, least exciting part of your move, it is important and could save you a lot in the long run.
In this guide we’ll look at:
- Reasons you for transferring your life savings.
- How currency exchange and money transfers work.
- The importance of getting the best deal.
- Typical fees and commissions for transferring savings overseas.
- Your bank versus a dedicated currency exchange provider.
- The services dedicated currency providers offer.
- How to use a currency provider to transfer your savings from New Zealand to Australia.
- What to do with your money that’s still in New Zealand.
- Hints and tips.
Read on for our advice on how to make the most of your money and get off to a great start in Australia.
How to Find the Cheapest Way to Transfer Money From New Zealand to Australia
Compare The Total Cost
The total cost of the transfer comes down to 2 things:
1. Transfer Fees
Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.
2. Exchange Rate Margin
There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.
Reasons You Could Be Transferring Your Life Savings from New Zealand
There are many reasons you could be making the move to Australia, from New Zealand.
- You might be coming to study in Australia for the next few years and want to have your savings with you.
- Maybe it’s getting a bit to cold down in the South Island and it’s time to head to the sunny Australian coast.
- Your company could be expanding internationally and you’ve been given the opportunity to work in the Australian office.
- Maybe you’re retiring and want a change of scenery to welcome this new chapter of your life.
Whatever your reasons, it’s important to make the best financial decisions when winding down your life in New Zealand and jet setting across to Oz.
How Currency Exchange and Money Transfers Work
If you are looking at transferring your savings from New Zealand to Australia, it will mean converting your finances from one currency to another. In this case from the New Zealand Dollar to the Australian Dollar. This rate is used to work out how much of your money will be converted and can be based on how much you are transferring.
Your New Zealand Dollar amount will be subject to certain fees and exchange rate commissions which will determine how many Australian dollars you receive. This depends on several important factors:
- The prevailing, interbank, baseline exchange rate between NZD and AUD.
- The amount you are transferring.
- How you will be paying for your transfer in the UK (typically via bank transfer or debit card).
- The variation between the baseline exchange rate and the exchange rate you are offered by the provider you use.
- How you will be receiving your money in Australia (typically directly into a bank account).
- Any other fees and charges
Why You Want the Best Deal when You’re Moving Savings
It may seem like the easiest option would be to use your bank, or even PayPal to transfer your savings from New Zealand to Australia. While this might be the case, keep in mind that the exchange rate your bank offers will not be anywhere near as competitive as a currency exchange provider will be. Banks and PayPal will generally;
- Have a much less competitive rate than dedicated providers.
- Charge higher or additional fees.
- Won’t provide dedicated customer service to answer any questions or help you through the transfer
- Won’t allow you to set a ‘forward contract’ allowing you to lock in a rate that you want to exchange at.
Taking into account the average exchange rates and fees provided by banks, compared to a dedicated currency exchange provider:
On a transfer of $50,000NZ, you could pay nearly $1,500 more if you use a bank or PayPal.
Typical Fees and Commissions for Transferring Savings Overseas
There are a number areas that have a big influence on how much you will pay to send your money from New Zealand to Australia. Let’s dig into the main areas that impact how much you will pay.
The Exchange Rate
There are a lot of options when it comes to deciding to transfer a large amount of money internationally. Whether you use a provider, a bank or PayPal, the thing that will make the most impact is the exchange rate. More importantly, the difference between the interbank rate, and what the provider is offering you.
Any difference between those rates directly impacts the amount of money you will receive
Here’s an example of converting New Zealand dollars to Australian dollars:
- Interbank, the mid-market rate for transferring NZD to AUD (baseline) — 0.956AUD per NZD.
- PayPal exchange rate for transferring NZD to AUD — 0.930AUD per NZD.
- ANZ exchange rate for transferring NZD to AUD — 0.932AUD per NZD.
- WorldFirst currency provider exchange rate for transferring NZD to AUD — 0.953AUD per NZD.
- Difference between PayPal and baseline rate — 2.6% worse.
- Difference between ANZ and baseline rate — 2.4% worse.
- Difference between WorldFirst and baseline rate — 0.3% worse.
These exchange rates are correct as of late June 2017. The exchange rate you are offered may vary depending on multiple factors including date, time, the amount you are transferring, and various other areas.
Commissions or Extra Fees for Money Transfers
While providers make money based on the exchange rate they offer, some will charge additional fees as well. It could appear as a fixed fee or an additional commission percentage.
Payment Fees for Deposit and Withdrawal
Sending or receiving money can also incur a fee from some banks, this can be known as an international wire fee.
Your Bank Versus a Dedicated Currency Exchange Provider
Our money transfer and currency exchange comparison tool allows you to compare providers, their fees and rates. This can accurately demonstrate how you can save money. We looked at transferring about $50,000NZ to see how much you could get in Australian dollars from various providers.
|Provider||NZD to AUD Exchange Rates||Transfer Fee||Total AUD for $50,000NZD||Difference to Baseline|
Looking at the table we can see there are definite savings to be had if you use a dedicated currency provider such as WorldFirst or OFX. You could save up to 9% by using a dedicated provider instead of your bank.
Benefits of Dedicated Currency Exchange Providers
When it comes to transferring your savings from New Zealand to Australia, there are dedicated providers for you to choose from. Examples include TorFX, HiFX, OFX and World First offer competitive options that for transferring money quickly and easily.
These providers have several benefits including:
- Noticeably lower fees and better exchange rates than PayPal or banks.
- Fast transfers, meaning transfers can sometimes be made within one working day.
- Dedicated customer support and advice. This is really important when you’re dealing with your life savings.
- Online options for sending money through their website or app.
- Offer forward or limit orders to manage risk and allow you transfer at the rate you want.
- Mobile apps and other tools to manage the money transfer processes.
Fee Free Offer
OFX is a trusted partner of The Currency Shop. OFX customers using this link through The Currency Shop will not incur a transfer fee for their first two international money transfers, regardless of the size of the transaction.
Minimum transfer $250. Please note that the receiving bank or intermediary bank may charge fees on transactions.
Using a Currency Provider to Move Your Savings From New Zealand to Australia.
It’s easy to setup an account with a currency provider to transfer your savings:
- Go to our comparison tool to see which provider can offer you the best deal.
- Once you’ve decided on a provider, visit their website directly from our tool.
- Create an account with the currency provider — you will generally need a proof of identification and a proof of address.
- Get an up-to-date quote for converting your New Zealand and to Australian dollars.
- Organise to transfer your money either online, through their app or over the phone.
- Provide details of the bank account receiving the money — you will generally need an IBAN or SWIFT number.
- Fund your account with the provider, usually via a bank transfer.
- Your currency provider will then make the exchange and deposit funds into your Australian bank account.
What to Do With Your Money That’s Still in the UK
If you decide to transfer all of your savings to Australia, you may still be in a position where there are still payments going into your account in New Zealand. This could be a pension or investments from property or stocks.
With the provider you’ve decided to use, you could set up regular transfers to happen from New Zealand to Australia so that you still have easy access to your money. Alternatively, you could leave them in New Zealand so that you have access to funds if you’re travelling back there at any time.
Here are a few tips on getting the most value out of your international currency exchange.
- Use our quote tool to find the best value transfer for any circumstance.
- Check with the sending and receiving banks to see if they charge any fees for sending or receiving funds.
- Ask your currency provider about “forward” or “market limit” orders — these allow you to set a “threshold” for exchange rates, so you only move money if it hits the rate you’ve set. This can help you manage risk and get a better rate for your money transfer.
- Because you’re transferring a large amount, give your currency provider a call as they may offer more competitive rates.
And that’s our guide to transferring savings between New Zealand and Australia. Hopefully, this will help you save some money which can be put towards your time in Australia.
All figures and estimates provided in this article were correct as of June 2017. Exchange are subject to change at all times, so these numbers are not indicative of what you will receive at any other time. The article is designed to demonstrate the savings that are possible, depending on the provider you choose to use.
Recommended For You
This calculator helps you compare exchange rates and fees of banks and money transfer specialists.
Using a bank is one of the easiest ways of sending money overseas but it is also the most costly. Here are 5 cheaper alternatives…
Transferring money back to Australia isn’t easy and can also be really expensive. This articles compares the best ways of moving money back to Australia.