Barclays

Your guide to expatriate banking services in New Zealand

Introduction

New Zealand lies in the South Pacific Ocean, about 1,900 kilometres east of Australia, and the official languages are English and Maori.

New Zealand's banking system is highly sophisticated, with a full range of services available to New Zealanders and visitors. The currency is the New Zealand dollar (NZD).

Banks in New Zealand

Central bank

• Reserve Bank of New Zealand (RBNZ)

Commercial banks in New Zealand

• ANZ National Bank
• ASB Bank
• Bank of New Zealand (BNZ)
• Kiwibank Ltd
• National Bank of New Zealand
• Westpac New Zealand

Bank opening times in New Zealand

Banking hours in New Zealand are very similar to the UK, with most local banks opening between 8.30am or 9am and 4.30pm (Mondays to Friday). A number of the main banks extend their opening hours for one evening per week, with some banks and building societies also opening on Saturday mornings.

Banking services and facilities in New Zealand

Bank branches can be found throughout New Zealand, and offer customers a full range of counter services, in addition to internet, postal and telephone banking services.

Wide use is made of electronic banking in New Zealand, and the use of credit, debit and cash cards is widespread, whilst the use of cheques as a means of payment is declining.

The main types of bank account in New Zealand

You can choose from a wide variety of accounts, including current accounts, savings accounts and fixed-term accounts with the option of operating joint accounts too. Most New Zealand banks allow customers to operate accounts online, by telephone and in local bank branches. The New Zealand Post Office also offers banking services, under the name 'Kiwibank', and these services can be found at post shops.

• Current accounts - also known as transaction accounts, these accounts typically offer low interest rates and are used for day-to-day banking, offering easy access to available funds
• Savings accounts - offer lower interest rates, with some restrictions on withdrawals and access to funds
• Deposit accounts - offer higher rates of interest, but typically offer limited access to funds held on deposit

Opening a bank account when you arrive in New Zealand

Requirements for identification and official documentation can vary depending on the bank or institution, and typically, you will need two forms of identification: your Inland Revenue Department (IRD) number and recent statements from your current or previous bank. If you do not have an IRD number at the time of opening the account, you will be charged the resident withholding tax (RWT) at 39%.

Opening a bank account before you arrive in New Zealand

You may not need to visit a branch in person, as many accounts can be opened by telephone or by post, subject to proof of identity, with a typical initial opening balance of between $200-$500 NZD being required. Accounts can be opened through major New Zealand Banks, many of which have international branches.

Another option is to open an international account before you move to New Zealand. An international account can help you make a smooth transition from domestic to international banking, and provides you a wide range of secure international banking services.

These include online banking and offshore banking options, in addition to offering expats a range of convenient facilities, such as international payments and money transfers and accounts in a range of foreign currencies (including sterling, euros and dollars).

Credit and charge cards
Credit and charge cards are issued by most banks, and these, along with global credit cards such as Visa and MasterCard, are accepted widely throughout New Zealand. They can also be used to withdraw cash from ATMs or over the counter at banks, for a charge of NZ$1.50 to NZ$4 per transaction. Annual fees for credit cards range from $20-100 NZD, with credit cards offering a range of incentives to customers such as bonuses, frequent flyer points or cash rewards. Some of the large stores and retailers in New Zealand issue their own charge cards, although some stores may only accept their own store cards and the interest rates (APR) on store cards can be high.

Cheques
Using a cheque incurs a 'cheque duty' (a form of stamp duty) of 5 cents per cheque issued. This amount is automatically deducted by your bank, which customers need to be aware of when reconciling cheques issued with the debits that appear on bank statements. There are no cheque guarantee cards in New Zealand, so a driving licence or credit card may be asked for as identification when paying by cheque.

A cheque paid into your account is usually credited the next day (occasionally the same day if the cheque is from the same branch or bank). A cheque drawn on your account and given to someone else may also be debited from your account on the same or the next day.

Money transfers to and from New Zealand

As well as money transfer services offered by banks, there are a wide variety of specialist businesses in the money transfer market. Rates charged can vary between institutions, so it is advisable to research transfer charges beforehand to secure the best deal.

There are no restrictions on the amount of foreign currency that can be brought in or taken out of New Zealand. However, people who take more than $10,000 NZD in cash either in or out of New Zealand are required to complete a border cash report.

Bank charges in New Zealand

As in the UK, bank charges are incurred on a range of financial products and services, including some current accounts. However, due to competition between financial service providers, a range of financial incentives and introductory rates are often offered to new and existing customers, so it is advisable to shop around to ensure you get best deal.

Banking in New Zealand - other information

New Zealand ombudsman
If you have any complaints or issues with a bank in New Zealand, contact the banking ombudsman. You can find more information at www.bankomb.org.nz.

More information on banking with Barclays International

To find out more about the benefits of opening an International Bank Account before you move to New Zealand, speak to a specialist adviser from Barclays International on +44 (0)1624 684316†.

For further details regarding the range of international accounts, financial services and international investments available to expats and international residents, visit Barclays International online.