Best way to transfer NZ dollars to US bank.

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rustyjim
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Joined: Wed Mar 11, 2009 12:59 am

Best way to transfer NZ dollars to US bank.

Post by rustyjim » Tue Oct 01, 2019 7:06 pm

My son has been working in New Zealand and will be coming back to the US in a few weeks. He is a US citizen.
He has about $6000 NZ in an account with the Bank of New Zealand. He was wondering what would be the best way to get the money to his US bank account (Chase).

He is wondering if there are better options than just an international transfer between the two banks. I offered to throw the question out to the Bogleheads for their expertise.

Thanks
rustyjim

James2
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Location: Minnesota

Re: Best way to transfer NZ dollars to US bank.

Post by James2 » Tue Oct 01, 2019 7:28 pm

I use transferwise to NZ and back. It’s fast, their rates a pretty good, better than walking into the bank normally. I usually use the bank website to compare.

James

HawkeyePierce
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Re: Best way to transfer NZ dollars to US bank.

Post by HawkeyePierce » Tue Oct 01, 2019 7:30 pm

I’m an American living in New Zealand and TransferWise is the best pick.

bgreat
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Re: Best way to transfer NZ dollars to US bank.

Post by bgreat » Tue Oct 01, 2019 10:08 pm

rustyjim wrote:
Tue Oct 01, 2019 7:06 pm
My son has been working in New Zealand and will be coming back to the US in a few weeks. He is a US citizen.
He has about $6000 NZ in an account with the Bank of New Zealand. He was wondering what would be the best way to get the money to his US bank account (Chase).

He is wondering if there are better options than just an international transfer between the two banks. I offered to throw the question out to the Bogleheads for their expertise.
Cheapeast? Get an Interactive Brokers account, you'll get market rate FOREX, commission of USD 2, and you can then wire/ACH into a US bank account for free. If you close the account within 3 months they won't start charging you the monthly minimums (they charge 10 USD per month minus commissions that month, if you hold less than 100k, but only after 3 months).

Least hassle? Transferwise, but they charge 0.35% which is expensive (compared to IB). To be fair, for 6000 NZD that's probably still OK - total charge of 14 USD. But if you're doing this regularly you really don't want to be throwing away 0.35% on every transfer (and it's fairly easy to work around the IB minimums by either using them as your primary broker, or just moving 100k in assets from a different broker to them).

bob60014
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Re: Best way to transfer NZ dollars to US bank.

Post by bob60014 » Wed Oct 02, 2019 7:25 am

Depending on the type and value of accounts, his Chase account may have fee free wire transfer available. The last time I used it a couple months ago, the exchange rate was in line with rates seen on other sites.

SrGrumpy
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Re: Best way to transfer NZ dollars to US bank.

Post by SrGrumpy » Wed Oct 02, 2019 10:43 am

I used Transferwise for a similar NZ to U.S. transaction recently, and I recall there was an introductory offer that reduced my costs. I paid about NZ$120 to transfer about US$20,000.

fujiters
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Re: Best way to transfer NZ dollars to US bank.

Post by fujiters » Wed Oct 02, 2019 12:30 pm

bgreat wrote:
Tue Oct 01, 2019 10:08 pm
rustyjim wrote:
Tue Oct 01, 2019 7:06 pm
My son has been working in New Zealand and will be coming back to the US in a few weeks. He is a US citizen.
He has about $6000 NZ in an account with the Bank of New Zealand. He was wondering what would be the best way to get the money to his US bank account (Chase).

He is wondering if there are better options than just an international transfer between the two banks. I offered to throw the question out to the Bogleheads for their expertise.
Cheapeast? Get an Interactive Brokers account, you'll get market rate FOREX, commission of USD 2, and you can then wire/ACH into a US bank account for free. If you close the account within 3 months they won't start charging you the monthly minimums (they charge 10 USD per month minus commissions that month, if you hold less than 100k, but only after 3 months).

Least hassle? Transferwise, but they charge 0.35% which is expensive (compared to IB). To be fair, for 6000 NZD that's probably still OK - total charge of 14 USD. But if you're doing this regularly you really don't want to be throwing away 0.35% on every transfer (and it's fairly easy to work around the IB minimums by either using them as your primary broker, or just moving 100k in assets from a different broker to them).
+1

Curious if it'll still be $2 if one has one of their new IBKR Lite accounts. Looks like it might be, which would make it an amazing ongoing currency conversion option even without $100k held there.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

Topic Author
rustyjim
Posts: 44
Joined: Wed Mar 11, 2009 12:59 am

Re: Best way to transfer NZ dollars to US bank.

Post by rustyjim » Wed Oct 02, 2019 2:06 pm

Thanks for all the helpful replies. This forum is such a great resource. I will pass these on to my son.
rustyjim

kiwisteph
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Location: New Zealand

Re: Best way to transfer NZ dollars to US bank.

Post by kiwisteph » Sat Oct 05, 2019 12:38 am

I use XE Money Transfer to transfer funds from the US to NZ - happy with their service.

ivk5
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Re: Best way to transfer NZ dollars to US bank.

Post by ivk5 » Sat Oct 05, 2019 7:51 am

+1 to TransferWise for this use case- not the absolute cheapest, but competitive and hassle-free.

Also important and not mentioned above (and not what you asked): make sure he is aware of and compliant with IRS/Treasury filing obligations for US citizens overseas. That includes not just US tax return but also disclosure of foreign assets (FBAR etc), in case the balance of his Bank of NZ account balance ever exceeded the equivalent of $10k...

SrGrumpy
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Re: Best way to transfer NZ dollars to US bank.

Post by SrGrumpy » Sat Oct 05, 2019 10:22 am

ivk5 wrote:
Sat Oct 05, 2019 7:51 am
+1 to TransferWise for this use case- not the absolute cheapest, but competitive and hassle-free.

Also important and not mentioned above (and not what you asked): make sure he is aware of and compliant with IRS/Treasury filing obligations for US citizens overseas. That includes not just US tax return but also disclosure of foreign assets (FBAR etc), in case the balance of his Bank of NZ account balance ever exceeded the equivalent of $10k...
The NZ banks are all over this, shutting down accounts that refuse to supply foreign tax info.

ivk5
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Re: Best way to transfer NZ dollars to US bank.

Post by ivk5 » Sat Oct 05, 2019 10:30 am

SrGrumpy wrote:
Sat Oct 05, 2019 10:22 am
ivk5 wrote:
Sat Oct 05, 2019 7:51 am
+1 to TransferWise for this use case- not the absolute cheapest, but competitive and hassle-free.

Also important and not mentioned above (and not what you asked): make sure he is aware of and compliant with IRS/Treasury filing obligations for US citizens overseas. That includes not just US tax return but also disclosure of foreign assets (FBAR etc), in case the balance of his Bank of NZ account balance ever exceeded the equivalent of $10k...
The NZ banks are all over this, shutting down accounts that refuse to supply foreign tax info.
Not what I was referring to, and does not absolve the US citizen accountholder from his/her reporting obligations with respect to IRS and Treasury.

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sperry8
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Re: Best way to transfer NZ dollars to US bank.

Post by sperry8 » Sat Oct 05, 2019 3:59 pm

How does Transferwise get in between the Bank of New Zealand transfer and the US Bank receiving transfer? That is, BNZ has it's own wire transfer service (with worse currency exchange rates I'm sure). So do you first transfer from BNZ to Transferwise and then from Transferwise to US Bank acct? Or?
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ivk5
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Re: Best way to transfer NZ dollars to US bank.

Post by ivk5 » Sat Oct 05, 2019 4:03 pm

sperry8 wrote:
Sat Oct 05, 2019 3:59 pm
How does Transferwise get in between the Bank of New Zealand transfer and the US Bank receiving transfer? That is, BNZ has it's own wire transfer service (with worse currency exchange rates I'm sure). So do you first transfer from BNZ to Transferwise and then from Transferwise to US Bank acct? Or?
Bingo.

On the US end, they’ll use ACH. I can’t speak to NZ but in my jurisdiction I get money to them via free local transfer in local currency.

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sperry8
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Re: Best way to transfer NZ dollars to US bank.

Post by sperry8 » Sat Oct 05, 2019 4:05 pm

ivk5 wrote:
Sat Oct 05, 2019 4:03 pm
sperry8 wrote:
Sat Oct 05, 2019 3:59 pm
How does Transferwise get in between the Bank of New Zealand transfer and the US Bank receiving transfer? That is, BNZ has it's own wire transfer service (with worse currency exchange rates I'm sure). So do you first transfer from BNZ to Transferwise and then from Transferwise to US Bank acct? Or?
Bingo.

On the US end, they’ll use ACH. I can’t speak to NZ but in my jurisdiction I get money to them via free local transfer in local currency.
But when I ask BNZ to transfer to me (or in this case to TransferWise), won't BNZ still want to use their ridiculous currency exchange rate? How does Transferwise get around that? Do they sort of do an ACH pull out or?
BH contest results: 2018: #150 of 493 | 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

ivk5
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Re: Best way to transfer NZ dollars to US bank.

Post by ivk5 » Sat Oct 05, 2019 4:07 pm

sperry8 wrote:
Sat Oct 05, 2019 4:05 pm
ivk5 wrote:
Sat Oct 05, 2019 4:03 pm
sperry8 wrote:
Sat Oct 05, 2019 3:59 pm
How does Transferwise get in between the Bank of New Zealand transfer and the US Bank receiving transfer? That is, BNZ has it's own wire transfer service (with worse currency exchange rates I'm sure). So do you first transfer from BNZ to Transferwise and then from Transferwise to US Bank acct? Or?
Bingo.

On the US end, they’ll use ACH. I can’t speak to NZ but in my jurisdiction I get money to them via free local transfer in local currency.
But when I ask BNZ to transfer to me (or in this case to TransferWise), won't BNZ still want to use their ridiculous currency exchange rate? How does Transferwise get around that? Do they sort of do an ACH pull out or?
You transfer to them in local currency.

Try taking a look at their website?

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sperry8
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Location: Miami FL

Re: Best way to transfer NZ dollars to US bank.

Post by sperry8 » Sat Oct 05, 2019 4:41 pm

ivk5 wrote:
Sat Oct 05, 2019 4:07 pm
sperry8 wrote:
Sat Oct 05, 2019 4:05 pm
ivk5 wrote:
Sat Oct 05, 2019 4:03 pm
sperry8 wrote:
Sat Oct 05, 2019 3:59 pm
How does Transferwise get in between the Bank of New Zealand transfer and the US Bank receiving transfer? That is, BNZ has it's own wire transfer service (with worse currency exchange rates I'm sure). So do you first transfer from BNZ to Transferwise and then from Transferwise to US Bank acct? Or?
Bingo.

On the US end, they’ll use ACH. I can’t speak to NZ but in my jurisdiction I get money to them via free local transfer in local currency.
But when I ask BNZ to transfer to me (or in this case to TransferWise), won't BNZ still want to use their ridiculous currency exchange rate? How does Transferwise get around that? Do they sort of do an ACH pull out or?
You transfer to them in local currency.

Try taking a look at their website?
I did. It's terribly unclear to me. But I appreciate the assistance here.
BH contest results: 2018: #150 of 493 | 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

HawkeyePierce
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Re: Best way to transfer NZ dollars to US bank.

Post by HawkeyePierce » Sat Oct 05, 2019 5:12 pm

BNZ sends NZD over to TransferWise. That's why TransferWise gives you a New Zealand account number. You don't send money from BNZ to your US TransferWise account number.

It's just a normal NZ bank transfer from BNZ's perspective.

(BNZ acts as TransferWise's correspondent bank in New Zealand, so technically you're just transferring money between two different BNZ accounts anyways).

ivk5
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Re: Best way to transfer NZ dollars to US bank.

Post by ivk5 » Sat Oct 05, 2019 6:44 pm

https://transferwise.com/gb/blog/how-do ... rwise-work
Pay by credit or debit card or make a local bank transfer to TransferWise’s bank account in your country.

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