Advice on getting USD to NZ.

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Forums › Finance and wealth management › Advice on getting USD to NZ.

eracode

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#302817 23-Dec-2022 07:53

A friend in the US needs to send us NZ$400. What is a good and efficient way for him to do this? I don’t mind whether it goes to our cheque account or our credit card account.

Although I am a retired banker and aware of SWIFT codes etc, this is something of which I little direct experience at a personal level. Would be grateful for advice. I'm sure I've seen stuff on this here on GZ before but can't readily find it.

Sometimes I just sit and think. Other times I just sit.

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#3013383 23-Dec-2022 08:26

Do you travel internationally, even just occasionally, and are you likely to need to do this again?

I'd personally recommend Wise as they save you a chunk on international bank fees, but for a one off transaction you might not want to go thru all the setup.

Generally known online as OpenMedia, now working for Red Hat APAC as a Technology Evangelist and Portfolio Architect. Still playing with MythTV and digital media on the side.

eracode

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#3013389 23-Dec-2022 08:56

openmedia:

Do you travel internationally, even just occasionally, and are you likely to need to do this again?

I'd personally recommend Wise as they save you a chunk on international bank fees, but for a one off transaction you might not want to go thru all the setup.

Thanks. We do travel internationally a lot but don't really have a strong use case for Wise and this USD>NZD transfer is a one-off.

Sometimes I just sit and think. Other times I just sit.

nztim

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#3013390 23-Dec-2022 09:01

We use Wise to send money to my wife’s US bank account, really efficient way of doing it

Any views expressed on these forums are my own and don't necessarily reflect those of my employer.

Wakrak

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#3013391 23-Dec-2022 09:11

Big fan of Wise. We use the physical card when we go to Australia. Takes the hassle out of things. Good for VPN deals too.

Handsomedan

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#3013392 23-Dec-2022 09:13

Wise is the cheapest and most efficient way of doing this.

Everything else will cost you a fee (usually about $25 here) and may also incur a lifting fee at the other end (usually around $20USD).

It's a bit hit and miss. Unless you're sending a large sum, it's a no-brainer.

Edit - just saw it's the other way around - USD to NZD.

Still worthwhile getting a Wise account set up - that way people can pay you "locally" into an account in their home currency and you simply transfer it in-app to NZD at a low cost and decent rate and withdraw or transfer to your usual NZ-domiciled account.

https://wise.com/nz/

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notesgnome

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#3013393 23-Dec-2022 09:25

100% use Wise.

Once you're set up, you can use it in so many other ways (the virtual credit card option is a big plus).

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#3013397 23-Dec-2022 09:37

I'm attempting to use wise to receive a similar value of GBP from the UK (just waiting for the sender to confirm if they are happy with that account).

The alternate best value option seems to be to open a foreign currency account with a NZ bank (I have one with westpac), and have the sender send the money via the banking system with the note "Do Not Convert". Once you have the USD in your account, you can use a service like XE to do the current conversion.

In terms of value, If money gets sent internationally with a currency conversion included, the sending bank will take a 2.5% - 5% margen on the forex, so using the normal banking route is expensive.

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freitasm

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#3013398 23-Dec-2022 09:39

Wise.

nztim

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#3013401 23-Dec-2022 09:51

Not likely but just remember if you have any money denominated in a foreign currency in your wise account that exceeds 50k NZD equivalent that becomes a financial arrangement for tax purposes and you have to pay tax on foreign currency gains

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eracode

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#3013404 23-Dec-2022 09:57

eracode:

openmedia:

Do you travel internationally, even just occasionally, and are you likely to need to do this again?

I'd personally recommend Wise as they save you a chunk on international bank fees, but for a one off transaction you might not want to go thru all the setup.

Thanks. We do travel internationally a lot but don't really have a strong use case for Wise and this USD>NZD transfer is a one-off.

Thanks to all. Wise seems the way to go. My circumstances are probably irrelevant - the funds are originating from our friends so it’s really them who need to open the account etc. I tell them about it and let them investigate.

Sometimes I just sit and think. Other times I just sit.

Scott3

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#3013405 23-Dec-2022 10:04

eracode:

Thanks to all. Wise seems the way to go. My circumstances are probably irrelevant - the funds are originating from our friends so it’s really them who need to open the account etc. I tell them about it and let them investigate.

Wise enables you to provide a foreign bank account for them to (domestically within the US) to send the money to.

This is different from services like XE, who insist on receiving funds from their own customer.

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#3013409 23-Dec-2022 10:41

Hi yes I use Wise to send money abroad. Really easy and a lot cheaper than the bank! Give it a try with a fee-free transfer of up to 900 NZD

https://wise.com/invite/ath/neila198

freitasm

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#3013420 23-Dec-2022 11:18

eracode:

Thanks to all. Wise seems the way to go. My circumstances are probably irrelevant - the funds are originating from our friends so it’s really them who need to open the account etc. I tell them about it and let them investigate.

Think about how you will use it in the future. If your friends open the account they will send money to you. They will need your bank account details and email address to send it. Your friends will need to go through the whole identification, documents, etc.

If you open the account you are responsible for identification, etc but then you can have a number in other countries, so anyone can send money to that account, in their own currencies. You can then use the Wise card (online or in store, including using contactless via Google Pay and Apple Pay), or you can withdraw to your bank account.