Best Way to Send Money to New Zealand

Looking for the best way to send money to New Zealand? 

Whether sending funds to family and friends or conducting business transactions, finding a reliable and cost-effective method is essential. 

With numerous options available, including bank transfers, online money transfer services, and digital wallets, navigating the choices can be overwhelming. 

In this article, I’ll explore the various methods and providers to help you determine the best way to send money to New Zealand from the UK.

Best Way to Send Money to New Zealand: My Verdict

For most people, the best way to send money to New Zealand is through an online money transfer service like TorFX and XE.

These services offer better exchange rates, lower fees and faster transfers than traditional banks. 

The platforms are user-friendly; signing up and transferring money takes just a few minutes. Some providers like Currencies Direct and OFX also provide a dedicated account manager to guide you through the process and answer any queries. 

However, a traditional bank transfer may be more suitable if you prefer in-person transfers and want to avoid signing up for a new service. 

Whilst convenient, secure and reliable, bank transfers are less cost-effective, usually offering lower exchange rates and higher fees. 

Bank transfers are also significantly slower than online money transfer services, which could be an issue for urgent transfers.

What’s the Cheapest Way to Send Money to New Zealand?

TorFX is the cheapest way to send money to New Zealand, offering free transfers with a competitive exchange rate of 2.0827.

It’s the most cost-effective money transfer provider wherever you want to send small or large amounts to New Zealand.

OFX and Currencies Direct also don’t charge a transfer fee, but their exchange rate is less favourable than TorFX. 

Even though Wise and Revolut have a better exchange rate than TorFX, these providers also have scaled transfer fees, which means you’d get fewer New Zealand dollars for your British pound.

What’s the Fastest Way to Send Money to New Zealand?

XE is the fastest way to send money to New Zealand, delivering funds within 24 hours, ideal for emergencies and urgent situations.  

Wise and Revolut also offer fast transfers, with the recipient receiving money in New Zealand within one working day. 

As you can see from the table, whichever provider you choose to send money to New Zealand, transfers are typically completed within three working days.

Can I Send Money to New Zealand Online?

You can send money to New Zealand in several ways.

1. Online Money Transfer Services: Providers like Wise and Currencies Direct are ideal for sending money quickly and conveniently. They offer more competitive rates with lower fees than traditional methods, but some services limit the amount you can send. 
2. Bank Transfers: Suitable for sending large sums of money, bank transfers are secure and widely accepted. However, they’re unsuitable for urgent transfers as they’re significantly slower than other methods.
3. Digital Wallets: Platforms like PayPal and Skrill are user-friendly and offer near-instant transfers. They’re best for sending smaller amounts to New Zealand because they have a relatively low transfer limit and higher fees than online money transfer services.
4. Cash Pick-Up Services: Ideal for those without a traditional bank account, cash pick-up services like MoneyGram and Western Union enable recipients to collect cash from designated locations in New Zealand. Although fast, these services typically have high fees, which makes them less cost-effective. 
5. Prepaid Debit Card: Reloadable cards that can be used to make purchases or withdraw cash are convenient for recipients without bank accounts in New Zealand. However, some providers may have fees for reloading and transactions.
6. Cryptocurrency: Suitable for tech-savvy users, you can send digital currencies like Bitcoin or Ethereum to your recipient’s cryptocurrency wallet. Although fast and relatively low-cost, cryptocurrency values are highly volatile, which may reduce the amount your recipient receives.

Sending Large Amounts of Money to New Zealand

Currencies Direct, OFX and TorFX are the best ways to send large amounts of money to New Zealand.

Unlike other online money transfer services, these providers don’t limit the amount you can send, giving you greater flexibility for larger amounts. 

Not only are they user-friendly, but their customer support is also excellent. When I signed up for these services, I was quickly contacted by a dedicated account manager who walked me through the entire process from start to finish. 

Alternatively, you can transfer large amounts of money by bank transfer.

This method is secure and reliable, but it has higher fees and less favourable exchange rates than online money transfer services, which means that your recipient will receive fewer NZD.

Some providers offer enhanced exchange rates or free transfers for larger amounts, so it’s worth comparing different services. Even small differences in rates can make a significant impact on large transfers.

Depending on your provider and transfer amount, you may be asked to provide details like your recipient’s 8 to 9-digit IRD number (Tax Identification Number) or documents like source of funds, proof of address and government-issued ID to comply with regulations.

Consider any potential tax implications of transferring large sums of money to New Zealand, both in the UK and New Zealand. It may be advisable to consult with a financial advisor or tax professional for guidance on tax-related matters.

Can I Set Up Regular Payments to New Zealand?

There are several ways you can set up regular payments to New Zealand. 

1. Online Money Transfer Services: Providers like Currencies Direct and XE are suitable for those who want flexibility in scheduling payments. Although exchange rates are competitive, they may fluctuate between transfers.
2. Standing Orders: You can instruct your bank to make regular fixed payments to popular NZ banks like Absa and FNB. Although convenient, it lacks flexibility in adjusting payment amounts or frequencies.
3. Direct Debits: Ideal for paying bills or subscriptions to businesses in New Zealand, Direct debits authorise 3rd parties to withdraw regular payments from your bank account. However, you won’t have control over payment timings or amounts and must trust the business with your payment details. 
4. Digital Wallets: Platforms like PayPay are suitable for conveniently sending small payments to New Zealand. Although it often has enhanced fraud protection, it’s less widely accepted than other payment methods.

Sending Money to Businesses in New Zealand

Online money transfer services like TorFX and OFX are an excellent way to send money to businesses in New Zealand. 

Convenient and user-friendly, these services offer fast processing, better exchange rates and lower transfer fees than traditional methods. 

However, some providers limit the amount you can send to businesses in New Zealand, which could be an issue for larger transfers.

Alternatively, you can use a bank transfer to electronically transfer funds from your UK bank account to your business’s New Zealand bank account. 

This secure method suits larger business transactions but is more expensive and slower than online money transfer services.

Opt for payment methods that offer tracking and confirmation of payments, allowing the business to monitor the status of transactions and reconcile payments efficiently. Maintain records of all payment transactions for accounting and audit purposes.

Some providers may be required to provide further documentation, such as the source of funds, an invoice, or a contract, to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

How to Send Money to New Zealand

How you fund your transfer to New Zealand depends on your provider and transfer method. 

1. Bank Transfer: Suitable for large transfers and recurring payments, bank transfers are secure and widely accepted. However, processing times can be longer than other payment methods, which could be an issue for urgent transfers.
2. Credit Card: This method is ideal for small transactions or emergencies requiring immediate funds. Although you’ll have consumer protection benefits, transfers typically incur higher fees and interest rates than other payment methods.
3. Debit Card: Convenient for one-time or occasional transfers, paying for your transfer to New Zealand using a debit is cheaper than using a credit card. However, your transaction is limited by the available balance in your bank account and may offer less protection than credit cards. 
4. Digital Wallet: Platforms like PayPal and Skrill are suitable for small online transfers. Although fast, they have limited acceptance compared to bank transfers and card payments. 
5. Cash: Ideal for those without a traditional bank account, cash payments can be used for small transfers. However, it’s less convenient than digital methods and has a higher risk of loss or theft. 
6. Cheque: Although this traditional method is suitable for transferring large amounts of money to New Zealand, it’s rarely used due to its long processing times and higher risk of fraud.

What Details Do I Need to Send Money to New Zealand?

To send money to New Zealand from the UK, you typically need the following details and documentation:

• Your Details: You may need to provide your full name, address, and contact information.
• Recipient’s Details: Provide the recipient’s full legal name or registered business name, as well as their address, e-mail address, and phone number. 
• Recipient’s Bank Account Information: This includes the name of the bank, the branch address, the bank account number, and the bank’s 8 to 11-character SWIFT/BIC code.
• Recipient’s TIN: Depending on the amount you’re sending to New Zealand, you may be required to provide the recipient’s 8 to 9-digit IRD number (Tax Identification Number).
• Purpose of Transfer: Some services may require you to specify the reason for the transfer, such as personal or business-related.
• Further Documents: Depending on your transfer provider and the amount being transferred, you may need to provide government-issued ID like a passport or driver’s license and further documentation like source of funds, proof of address and a contract or invoice. This is to comply with anti-money laundering and know your customer regulations.

Ensure you have accurate and complete information to ensure a timely transfer process. 

How Much Does it Cost to Transfer Money to New Zealand?

You may be charged several fees when you transfer money to New Zealand.

Transfer Fees

The money transfer service or bank charges transfer fees for processing the transfer. 

Transfer fees vary widely between providers and are often influenced by the transfer amount, payment method, and transfer speed. 

Some providers may offer discounted or waived transfer fees for specific promotions or customers.

Transfer fees for online money transfer services typically range between £0 to £5 per transaction, whilst bank transfers are between £10 to £30 per transaction. 

Exchange Rate Margin

When you convert your British pounds (GBP) to New Zealand dollars (NZD), money transfer services and banks typically apply a margin to the exchange rate. 

This margin represents the difference between the interbank exchange rate (the rate banks exchange currencies) and the rate offered to you. 

The wider the margin, the less favourable the exchange rate and the lower the amount of NZD received by the recipient.

Banks usually apply an exchange rate margin of 3% to 5% above the mid-market rate, whilst online money transfer services range between 0.5% and 2%. 

Bank Fees

Your bank may charge additional fees for processing international transfers. 

These fees can include outgoing transfer fees between £10 to £25 per transaction for sending money abroad and intermediary bank fees, which may be incurred if the transfer passes through one or more intermediary banks before reaching the recipient’s bank in New Zealand.

Additionally, your bank may apply currency conversion fees of 2% and 3% of the transaction amount if you transfer money in a currency different from your account’s base currency.

Recipient Fees

The recipient’s bank in New Zealand may also impose fees for receiving an international transfer. 

These fees, often called incoming wire or correspondent bank fees, are deducted from the transferred amount before it’s credited to the recipient’s account. 

Recipient fees vary depending on the bank but are usually around NZ$10 to NZ$20, or £5 to £10, per transaction.

Additional Charges

There may be additional charges depending on the payment method you use to fund the transfer. 

For example, if you use a credit card to send money to New Zealand, your card issuer may charge a cash advance or foreign transaction fee. 

Similarly, expedited transfer services or same-day transfers may incur higher fees than standard transfer options. 

Online money transfer services usually charge around £5 to £10 per transaction for faster transfers, whilst expedited bank transfers cost around £20 to £50 depending on the urgency of the transfer.

How Long Does it Take to Send Money to New Zealand?

How long it takes to send money to New Zealand depends on your transfer method.

Generally, online money transfer services like XE and Wise take between 1 and 3 business days to reach the recipient’s bank account in New Zealand. 

In contrast, bank transfers are slower, taking between 3 to 5+ business days for the money to be received in New Zealand. 

Bank transfers involve more steps and may require processing by multiple banks, leading to longer processing times. 

Transfers paid for using a debit or credit card are usually processed faster than those paid for by bank transfer.

Your transfer may be delayed if you request it on weekends or public holidays, as banks and financial institutions may have limited operating hours or be closed entirely.

Additional verification or security checks may be required for certain transactions, which can prolong the processing time.

Frequently Asked Questions