Whether you are already a British expat in New Zealand or are about to make the move, one of the key things to consider is how to ensure your money can move abroad safely.
British expats move to New Zealand to enjoy its mix of beautiful scenery, relaxed work life and culture, safety and cosmopolitan areas all placed within convenient distance of the wealth of attractions the island country has to offer.
New Zealand is becoming more welcoming to expats, having recently announced it will soon launch two new residency pathways to encourage more skilled and experienced migrants to come and live and work in the country. New Zealand also came at the top of a recent survey ranking the best countries for expats seeking out a healthier lifestyle.
One of the key aspects of managing your finances is ensuring you can move your assets between the UK and New Zealand without having to pay high costs or experience unnecessary delays. We explore these factors and show you what to look out for when comparing money transfer providers below.
Reasons for sending money between the UK and New Zealand
Some of the reasons you may be aiming to send money overseas might include:
- Supporting family: You may be receiving money from relatives in the UK, or looking to send money back home.
- Paying for property or related costs: Expats may need to transfer money from UK bank accounts overseas to pay mortgages, for rental properties or to support other financial commitments, or transfer money back to the UK to support ongoing assets.
- Pensions or retirement income: Retirees may need to transfer UK pension payments into New Zealand dollars to pay for living costs or other expenses
- Savings and investments: Moving to New Zealand might mean transferring money or savings (e.g. from selling a UK property).
In the past, many expats relied on high street banks for international transfers to New Zealand. However, these can often come with high fees attached, and be delayed by long clearing times. Sometimes, it isn’t always clear how much these fees might cost or how long money might take to arrive at its final destination.
The exchange rate between British pound sterling (GBP) and the New Zealand dollar (NZD) has changed significantly over time, and could continue to do so in the future. Over the last two years it has moved in the pound’s favour, having risen by around 13% compared to September 2023. However, because some high street banks can apply a high markup or fees to money transfers (depending on how much you are spending), you can end up losing out on a more favourable exchange rate.
The high cost of sending money to New Zealand can add up over time – however a number of specialist money transfer providers can help you send money abroad faster and at a lower cost.
How to compare money transfer providers
Choosing the right provider can make a big difference to how much you spend by offering money transfers at a more competitive cost. When comparing money transfer providers to New Zealand, always consider the following.
- Exchange rate: consider the rate that providers are offering on top of the existing GBP-NZD rate.
- Fees: Some providers may solely charge for transfers via a markup on the exchange rate, while others may include a straight fee depending on the amount transferred. Always consider the total cost of your transfer with these factors included.
- Speed of delivery: Use providers that are clear and transparent on not just the cost, but also how long it will take for money to arrive, which could vary depending on the money transfer provider’s network and strength in the region.
- Convenience: Nowadays, most providers will offer a mobile app that can make it even easier to send money back home, making it easier on the move.
Tips for managing money as an expat
Here’s a few other things to bear in mind when it comes to managing money overseas.
Time transfers for exchange rates
As already mentioned, the GPB-NZD exchange rate can change, particularly based on the UK’s industrial markets or various factors in New Zealand. For example, tourism is a big driver of New Zealand’s economy, and so when the country is seeing a higher number of tourists this can help contribute to driving the strength of NZD.
If you or the person you are sending to can afford to wait for more favourable rates – particularly when you are making large purchases such as property – it can be beneficial to monitor the market, or use a money transfer provider to set an exchange rate alert so that you can immediately be informed when it is time to transfer.
Use multicurrency accounts
Multicurrency accounts are able to hold both GBP and NZD at the same time, which can be really useful if you are still earning GBP but want to be able to spend in NZD.
These accounts have grown in popularity, with several specialist money transfer providers (e.g. Wise, Revolut) now offering these accounts as well as some banks. You can also use them to prevent having to repeatedly convert money if you are sending to the UK or vice versa.
Avoid hidden fees
Always make sure you check the full breakdown of fees before you send money to ensure that they aren’t eroding the value of transfers. Our comparison tool for providers will show the cost of sending money abroad, allowing you to pick the best option for your transfer.
Setting up regular transfers
If you are going to be sending money to New Zealand or the UK regularly (for example to pay mortgages or send money to family) it might make sense for you to set up regular transfers through your provider.
Use FXcompared to find the right money transfer provider
Our comparison tool can help you compare money transfer providers in seconds. Read our in-detail guide for sending money to New Zealand and start saving money today.
