Is it necessary to open a bank account in New Zealand online in advance?

Hello there, regarding whether or not to open a bank account in New Zealand before your arrival, let me share my experience with you as someone who's been through it.

My advice, in a nutshell, is this: It's strongly recommended to open one in advance, but it's not absolutely essential.

Here's why: For most people moving to New Zealand to live, study, or work, getting this done online beforehand brings far more benefits than the slight inconvenience involved.

Why is it "strongly recommended" to open an account in advance?

Imagine this: you haven't even arrived in New Zealand yet, but you already have your own bank account. Doesn't that feel incredibly reassuring? Specifically, there are several tangible benefits:

1. Convenient and safe for transferring living expenses!

   • This is the most important point. You can convert a large sum of money (e.g., your first year's tuition, living expenses) from your home country's bank account into NZD in advance and transfer it directly to this New Zealand account. This avoids the risk of carrying large amounts of cash and gives you peace of mind when you land.

2. Meets visa requirements, hassle-free!

   • Especially for international students, visa officers often require proof of funds to demonstrate you have enough money to live in New Zealand. If you already have a New Zealand bank account with funds in it, this serves as very strong evidence.

3. One less thing to worry about upon arrival, allowing for a smoother transition!

   • When you first arrive in New Zealand, you'll be swamped with tasks like getting a mobile SIM card, finding accommodation, and applying for an IRD Number (tax number). If you've already sorted out the major issue of your bank account, you only need to find time to visit a bank branch to activate it and pick up your card. Then you can immediately start making card payments and paying rent. Doesn't that make things much smoother?

4. Lock in a favorable exchange rate in advance, saving money!

   • You can monitor the NZD exchange rate and exchange/transfer funds when you feel the rate is favorable, potentially saving you a significant amount of money!

What are the "minor inconveniences" to be aware of when opening an account in advance?

Of course, there are always two sides to every coin. Here are a few points you need to be clear about regarding opening an account in advance, so you don't get flustered later.

• The account is not "fully functional" The account you apply for online is only a "pre-account." You can transfer money into it, but you cannot withdraw or spend it. You must activate it in person after arriving in New Zealand by bringing your passport, visa, and proof of address to your chosen bank branch. Only after activation and receiving your EFTPOS card can the account truly be used.

• "Proof of address" can be a hurdle This is a common "catch-22" for many newcomers: banks require proof of address for activation, but signing a rental agreement might require a bank account. Don't worry, there are ways to solve this:

  • For students: Your school will usually provide you with a letter containing your name and your assigned accommodation address, which banks will accept.
  • For workers: You can ask your employer for an employment letter with your name and company address (some banks accept this as a temporary address).
  • General method: If you're staying with friends or in a long-term Airbnb initially, you can discuss with the landlord about using that address to receive a bank letter as proof. It's best to confirm with your chosen bank in advance what forms of address proof they accept.

• There is a time limit Banks typically give you a time window, for example, you need to enter New Zealand and complete activation within 90 days from the account approval date. So, don't apply too early; calculate your departure date carefully.

In summary

Who should most definitely open an account in advance?

• International students: Almost a must-have, for both visa purposes and ease of tuition transfer.
• New immigrants/Work visa holders: Highly recommended, it will make your life much smoother upon arrival.

Who might not need to open an account in advance?

• Short-term tourists: Absolutely no need. Using your home country's international credit card or carrying a small amount of cash is sufficient.
• Those with family or close friends in New Zealand: If you have someone who can help you settle in initially, you can keep your money with them and open your own bank account once you're settled.

My little tips

• Which bank to choose? Major banks in New Zealand include ANZ, ASB, BNZ, Westpac, Kiwibank, etc. Their services are largely similar. You can visit their websites to see which interface you find more user-friendly or which process seems simpler. ANZ and BNZ tend to have more Chinese-language services.
• Remember to make an appointment! Before going to the bank to activate your account after you land, I strongly recommend booking an appointment on the bank's official website. Especially in major cities like Auckland and Wellington, just showing up might mean long queues or even not being able to complete your transaction that day. Booking an appointment saves time and effort.

I hope this information helps you! I wish you all the best in New Zealand!