NZ Bank Account That Can Be Opened from Overseas?

Lillumination on 27/07/2020 - 06:30

Hi All,

I'm an 11-year old Ozbargainer (same username) and seeking some advice/assistance for a New Zealand matter, so hoping to get some assistance!

My parents lived in New Zealand in the late 80s and early 90s, and during their time in New Zealand, they had some sort of insurance with AMP. Their insurance has now reached maturity and they are entitled to some sort of pay out, but they do not have a bank account in New Zealand. They are New Zealand citizens.

The document I've been shown has conflicting information as to whether the money can or cannot be credited directly to an overseas bank account. However, regardless of whether this is possible, I think it might be a better idea to see if there is any NZ Bank Account that can be opened from overseas, have the money credited there first, and only later on decide when/how/if to transfer the money overseas. I'm thinking of using a company like CurrencyFair/Transferwise/Instarem/OFX.

Are there any digital/virtual banks with which bank accounts can be opened with full internet banking, and without an active New Zealand number, and also has no monthly/annual fees? Thanks in advance!

General Discussion

Comments

  • Alan6984 on 27/07/2020 - 08:33

    Hi,

    Assuming this is a reasonably significant sum, I would not try and have it paid into anything other than a proper bank account that is in their name (even if you could).

    For me, I would talk to AMP, and if it can be paid directly into their overseas account (wherever they are now resident), then that would probably be the best option.

    If you are worried about currency movements, and they are long-term 'short' on NZD (either without the payout or perhaps even with it), then you could open an NZD account in their country of residence. Then, when they are in NZ in the future, and spending NZD, they can fund that trip from their NZD account (maybe not directly, but at least by transferring to their normal currency account) thus not caring out the forex rate too much.

    Opening a bank account in NZ, from overseas, is going to be a hassle at best. Its hard enough opening an account in NZ when you're here with all the AML stuff now!

    If you are dead set on going that way, just go into a branch of whatever bank you are with, or jump online and send them a message, and ask them - they should be able to tell you what can be done, and what your parents would need to do.

    Alan.

    • illumination on 28/07/2020 - 04:48

      Thanks for your help!

      Assuming this is a reasonably significant sum, I would not try and have it paid into anything other than a proper bank account that is in their name (even if you could).

      Yea I definitely had no intention of having it paid into anything but a legit bank account!

      For me, I would talk to AMP, and if it can be paid directly into their overseas account (wherever they are now resident), then that would probably be the best option.

      I've reached out to them now and confirmed that it can be paid out to an account overseas. I personally have a multi currency account including NZD, but neither of my parents do, so having the money credited to any of their accounts will result in a conversion. And I've also confirmed (unsurprisingly) that the money has to be paid into an account in the name of the policyholder, so I can't have it credited to my account first!

      However, now I'm thinking of whether I can ask whether an authorisation can be written by my parents to allow the money to be credited to my account first. Looks like I'll need to reach out again!

      Opening a bank account in NZ, from overseas, is going to be a hassle at best. Its hard enough opening an account in NZ when you're here with all the AML stuff now!

      Well for example, in Australia, there are banks like Xinja, 86400 and UP, all of which are "digital banks" with no branches, so I was hoping for something similar, and I was hoping my parents being New Zealand citizens would make the process slightly easier, despite being physically away from the country. But it doesn't look like anything's changed in the last year! I've literally just found this from googling "digital bank new zealand"!

      What's AML? Ok don't worry - I can probably google it! I'm assuming.. OH. It's anti-money laundering HAHA.

      If you are dead set on going that way, just go into a branch of whatever bank you are with, or jump online and send them a message, and ask them - they should be able to tell you what can be done, and what your parents would need to do.

      Yep I'll do it if I've exhausted all other options!

      Thanks!

      • Alan6984 on 28/07/2020 - 08:34

        Hi,

        I'm not familiar with 'Xinja, 86400 and UP' (probably all local outfits in Aus?), but the key thing, at least in NZ, is that you are dealing with a registered bank, rather than some random 'financial business'. If they are a registered bank, they are regulated by the RBNZ, and should be safe and legit (nothing is ever 100% of course!).

        The overall key consideration to me is the question of whether your parents are currently 'short' on NZD. If they aren't, or worse still, if they are 'long', then by holding the funds in NZD they are gambling on the currency cross-rates, and they should really consider converting to the currency that they are likely to need to spend it in sooner rather than later (for example, where they live now and hence where they will be spending for the foreseeable future).

        Good luck!

        Alan.

  • tomleonhart on 28/07/2020 - 13:31

    Hello buddy. Welcome to cheapies !!!! :D

  • Toddy47 on 28/07/2020 - 16:43

    I would look at a bank which has presence in both countries, Westpac for example: https://www.westpac.co.nz/fx-travel-migrant/banking-in-new-z…

    I assume it would be easier if you choose a bank they are already with, I am sure it couldn't be that difficult, especially based on the above link.

  • illumination on 07/08/2020 - 23:13

    Thanks for all the advice guys!

    I think I've found my most realistic and practical option, which is to open a Transferwise account and then open a Multi-currency account which includes the option of opening a NZD account. Pretty handy!

  • 2A3Q on 03/04/2022 - 23:53

    There is a possible real bank solution = HSBC.

    If you are a HSBC premier or jade customer in your home country, you can make an inquiry with your local international banking centre to request account opening request for New Zealand.

  • umakant on 03/04/2022 - 23:57

    Let me introduce you to transfer wise . .it gives you a virtual online NZ bank account .

    HSBC allows many countries with local bank account , they also were hit with lots of regulatory problems associated with money laundering

  • adengappa on 04/04/2022 - 16:05

    Good that you got the option with Transferwise. If at all you needed any other option worth checking Heartland bank and they are pretty good at handling stuff online.

  • Elvino on 04/04/2022 - 18:30

    Just as an alternative for you (having done this myself a few years ago), CBA ultimately own ASB. I was able to head into my local CBA, and arrange for the opening of an NZ ASB account without too much pain. The biggest issue is any resultant (potential) tax implications (if any). Something to be aware of for a large amount, IRD are always sniffing around………………

    • 2A3Q on 20/07/2023 - 23:33

      The issue about tax from an overseas account is 2 fold - 1) For Australia-NZ situation, there is reciprocal tax treaty between the 2 countries where if a person is a non-resident of the overseas country, it is important to set withholding tax deduction at 10% non-resident rate. If you do not have a tax number for the overseas country, the default arrangement is that the overseas bank will withhold tax on interest at the highest rate (45% for Australia, 39% for NZ {recently updated to 42%?}) until you nominate the non-resident withholding tax rate 10% by providing home country address in the overseas bank. You would declare the interest earned from the overseas bank account in your home country's tax return as overseas income (with the withholding tax already paid in that overseas country). 2) A person's own taxable income in one's own home country - if a person is at higher income tax rate, that person will pay the difference of their tax rate from 10%. (e.g. Top bracket of 45% income tax means there will be 35% more tax to pay from the overseas interest.)

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