Sending money to New Zealand: The best international transfer options
Sending money to New Zealand friends, relatives, or businesses can be a simple process. With so many options accessible, it’s critical to identify the most efficient and cost-effective solutions.
This detailed guide will provide you an overview of the numerous methods for transferring money to New Zealand, including costs, conversion rates, and transfer times.
Factors to Consider When Sending Money to New Zealand
Currency Exchange Rates
When transferring money to New Zealand, the first thing to consider is the currency rate.
Exchange rates change frequently during the day and can range between providers.
To get the best value for money, compare rates from different sources, such as banks, internet platforms, and money transfer providers.
Keep in mind that some providers may provide a lower rate but charge more in fees, so be sure to weigh up both of these factors before making a decision on what’s right for you.
Transfer Fees
When sending money internationally, fees play a big role.
They differ depending on the provider, the amount sent, and the destination.
Some service providers charge a flat fee, while others charge a percentage of the transfer amount.
Compare fees from different suppliers and keep an eye out for any hidden expenses, as they can be a killer!
Transfer Time
Depending on the method used, the time it takes to transfer money to New Zealand can vary significantly.
Some online services and banks may provide same-day, instant, or near-instant transfers, while others may require several business days.
If your recipient requires funds immediately, consider utilising a speedier service, even if the fees are greater.
Security and Reliability
It is critical to select a reputable and secure supplier when sending money overseas – nobody wants their transfer going missing!
Look for companies that are regulated by the appropriate authorities and have a proven track record.
We also recommend you only use providers that us encryption and other security measures to safeguard your personal and financial information.
Methods of Transferring Money to New Zealand
Bank transfers
Sending money to New Zealand through your bank is a traditional and convenient approach.
Most banks provide international wire transfers, which allow you to send payments directly from your account to the account of the recipient.
However, they often charge larger fees than alternative options (which we’ll discuss shortly), and their exchange rates are not always competitive.
Before making a decision, compare your bank’s fees and rates to those of alternative providers.
Online Money Transfer Services
Because of their low fees and competitive currency rates, online money transfer providers such as Wise, Paypal, WorldRemit and OFX have grown in popularity.
These platforms frequently have lower fees than banks and offer faster transfer timeframes.
They may also provide services like rate alerts and the opportunity to lock in an exchange rate for a future transaction and to hold multiple currencies at once.
What’s not to love about that?
To use these services, you’ll create an account online and will supply the required identification documents. Signing up is generally easy, though you’ll need to allow some time for your documentation to be approved.
This is our favourite way to send funds to Aotearoa New Zealand.
Save money on your first transfers by signing up to Wise through us! 💰
Did you know? Paypal used to be the most popular online money transfer service but with increased fees and the occasional issue withdrawing funds, it is no longer our preferred option.
Money Transfer Companies
Money Transfer companies allow you to send cash to a recipient in New Zealand, who may then receive it via a local agent.
If the recipient does not have a bank account or needs the funds right away, this technique is ideal.
However, fees may be more significant, and exchange rates may be less favourable than alternative options.
If you’d like to make use of a traditional money transfer company, Western Union and MoneyGram are the most reputable.
⚠️ These transfer companies are sometimes used in scams, so be absolutely certain you trust the person you are sending the money to.
The Cheapest Way to Send Money to New Zealand
When sending money abroad, the cost is typically the most important consideration.
To find the most affordable way to send money to New Zealand, evaluate fees, currency rates, and the other factors we mentioned across different providers.
Remember that the cheapest choice isn’t necessarily the fastest or most convenient.
Nor is the provider with the lowest fees necessarily the cheapest option overall.
These are some of the least expensive ways to send money to New Zealand from abroad…
International Money Transfer Services – Our favourite option
As previously stated, online money transfer services frequently charge smaller fees and offer better exchange rates than banks and traditional money transfer agencies.
Wise (formerly TransferWise), OFX, and CurrencyFair are popular online services but many more exist.
These platforms have lower operating costs and pass those savings on to their clients – so you save!
The exact fee you pay may vary based on the amount you send and the payment method you use (for example, bank transfer, debit card, or credit card). If you’re keen to really keep your costs down, a bank transfer is generally the cheapest option.
Want to save even more?
Some services waive transfer fees for new customers or those who exceed a certain payment threshold.
Pro tip: We love Wise and use it for our consultation payments and when we travel. We recommend you check it out too. This is our favourite way to send money internationally.
Promotions and Discounts
Many money transfer companies offer promotions or discounts to new customers or referrals – like Wise, as we’ve already mentioned.
Keep a look out for these offers, as they can help you save money on your transfers.
However, make certain that you are not sacrificing other important factors such as security, reliability and transfer speed simply to save money.
Peer-to-Peer (P2P) Money Transfer Services
P2P money transfer providers, such as CurrencyFair and Wise, can also provide cost-effective options for sending money to New Zealand.
These sites connect individuals who want to send money in opposing directions, allowing them to ‘swap’ currencies without requiring an international transfer.
As a result, these services can frequently provide better exchange rates and reduced fees when compared with transitional currency transfer methods.
Cryptocurrency Transfers
If both the sender and the receiver are familiar with digital currencies such as Bitcoin, Ethereum, or Ripple, cryptocurrency transfers can be an economical way to send money to New Zealand (and all around the world).
Crypto transfers have low transaction fees and near-instant transfer speeds.
The volatility of cryptocurrency pricing and the need to convert them to local currency, however, may cancel out some of the potential savings.
And, as we’ve already mentioned, this form of currency transfer really won’t suit everyone.
Common Reasons for Sending Money to New Zealand
Individuals and businesses may need to send money to New Zealand for a variety of reasons. Understanding these reasons can assist you in selecting the best approach and supplier for your specific needs.
The following are some of the most common reasons people transfer funds to NZ…
Family Support
One of the most prevalent reasons for sending money to New Zealand is to help family members who live here.
This might be to help with living expenses, healthcare costs or other financial assistance.
In such instances, selecting a dependable and cost-effective technique is critical, as the cost of recurring transfers can add up quickly.
Education Expenses
International students in New Zealand may require finances to cover tuition, housing and living expenses.
Parents or sponsors may need to transfer funds on a regular basis to finance their children’s education.
In these instances, it is critical to select a method that provides competitive exchange rates, low costs, and rapid transfers to fulfil payment deadlines.
Real Estate Investment
Another reason people may send money to Aotearoa is to invest in the country’s real estate industry.
Though our investment rules are stringent (and many people can’t invest in property here), some are able to purchase properties.
And for those that can, a large international transfer may be required as purchasing a home in New Zealand is an expensive undertaking.
To maximise the value of your investment, choose a service that can manage large transactions and offers competitive currency rates.
Travel and Tourism
Visitors to New Zealand may need to transfer money to pay for accommodation, tours, activities or travel consultations.
While using a credit card or travel money card is convenient, some travellers may prefer to send money ahead of time or to a local contact for safekeeping.
In this instance, choosing a quick and safe money transfer mechanism is critical.
Business-to-Business Transactions
Businesses may need to transfer funds for a variety of reasons, including paying suppliers, purchasing assets or covering operational expenses.
The speed, security, and dependability of the transfer technique are critical for businesses.
Plus, favourable exchange rates and low fees can assist businesses in maintaining profit margins.
Tips for Reducing Costs and Ensuring a Smooth Transfer
Plan Ahead
By planning your transfers ahead of time, you can avoid last-minute fees and unfavourable exchange rates.
This allows you to monitor the market and choose the best time to make your transfer, potentially saving you money.
Keep an eye on the exchange rates
To decide the ideal time to send money to New Zealand, keep a watch on exchange rates.
Exchange rates change throughout the day, and even minor variations might have a substantial influence on your transfer.
To keep informed and make timely transfers, use resources such as rate notifications and currency converters.
Verify Recipient Information
Check that you have the correct recipient information – such as their full name, bank account number, and bank information.
Incorrect information may cause delays or for cash to be returned to you, incurring additional fees in repeating the transaction.
To avoid problems, double-check all details before you begin your transfer.
Communicate with the Recipient
Keep the recipient updated on the transfer, including the projected arrival date and any reference numbers.
This will assist them in tracking the payments, ensuring that they receive the funds as planned.
If there are any problems, ask your recipient to notify you, allowing you to address the issue and avoid future delays.
Regulations and Accreditations to Look for When Choosing a Money Transfer Provider
When selecting a money transfer provider to send money to New Zealand, it’s crucial to ensure that they are regulated and accredited by the relevant authorities.
This adds an extra layer of security and trust, ensuring your funds are handled responsibly.
Here are some key regulations and accreditations from around the world to look out for…
Financial Conduct Authority (FCA)
The FCA is a regulatory body in the United Kingdom that oversees financial services companies, including money transfer providers.
If a provider is FCA-regulated, it means they adhere to strict guidelines, maintain customer funds in segregated accounts, and follow anti-money laundering (AML) and know-your-customer (KYC) protocols.
Australian Securities and Investments Commission (ASIC)
The ASIC is an independent Australian government body that enforces and regulates financial services companies.
Providers regulated by ASIC must comply with a range of obligations, including maintaining appropriate risk management systems and conducting regular audits.
Financial Crimes Enforcement Network (FinCEN)
FinCEN is a bureau of the United States Department of the Treasury that combats money laundering and terrorism financing.
Money transfer providers registered with FinCEN are required to implement anti-money laundering (AML) programs and comply with regulatory reporting requirements.
There are other options for transferring funds to Aotearoa, each with advantages and disadvantages.
It is critical to evaluate aspects such as exchange rates, fees, transfer times and the provider’s dependability, ensuring as much money as possible stays in your pocket.
Happy transferring!
