Opening a bank account in New Zealand, is one of the first things you should do when you arrive into New Zealand on on a Working Holiday Visa.
It can be overwhelming thinking about the different bank account options, account charges, ATM charges and deciding which bank account is actually the best.
Luckily opening a bank account in New Zealand is a relatively simple task, even if you’re a traveller or a backpacker.
So just follow this simple guide to Opening a Bank Account in New Zealand for Travellers and Applying for your IRD number.
Opening a Bank Account in New Zealand for Travellers
Opening a Bank Account in New Zealand for Travellers: How do Bank Accounts in New Zealand Work?
When opening a bank account in New Zealand, there are a few points to consider:
- Some everyday bank accounts charge a monthly fee (around $4 NZD) – (yes just for having an account).
- Banks will charge for ATM withdrawals if you withdraw cash from a different bank’s ATM (that’s cash-point to you Brit’s)
- You’ll get an EFTPOS card (Electronic Funds Transfer Point Of Sale) with your account and this gets used as your debit card
- You can pay by Chip & Pin or Paywave/Paypass with your EFTPOS debit card at most retailers
Opening a Bank Account in New Zealand for Travellers: Which Bank Account is best for Travellers?
There are five main big banks in New Zealand. They are:
As with all banks everywhere, there are different account types to suit everyone. The main thing you should look for in a bank account when you’re travelling, is a hassle-free account that’s easy to open and one that doesn’t charge monthly fees.
Some banks in New Zealand offer accounts which you can open online, some don’t charge the monthly account fee and a few have excellent online banking facilities and awesome apps. All this is super important when you need to check your account balance on the move.
But which one do I pick?!
No worries! I’ve done the hard work for you, you lucky person. Below I have detailed a couple of bank account options from two of the main big banks, that are both easy and simple to use if you’re travelling here.
Westpac has these two accounts that are best matched for travellers opening a bank account in New Zealand:
- Westpac’s Everyday Electronic Account is so simple to use. Bank online or at their ATM’s, no monthly account fees, no paper statements, excellent online banking website and for the app addict, there’s the ‘Westpac One’ app for mobile banking.
- Westpac also offer an Access Account for those who prefer not to do their banking online and like a bit more flexibility. You still get all the same features, online, phone and mobile banking, an EFTPOS debit card and choice of statement options, however this account does have a monthly account fee.
Once you’ve setup the app, you can access your account balance with just a 5-digit code …and you’re in! Anyone remember those cumbersome Pinsentry readers?
Keep in mind because the Westpac Everyday Electronic Account is exclusively a ‘electronic account’, if you visit a branch and carry out transactions over the counter, you will be charged.
Both of these Westpac accounts come with access to Smart Services such as CashNav and Westpac One.
And if you’re on a student visa or a longer work visa, you can open a Westpac bank account before you arrive in New Zealand.
Kiwibank is the NZ bank I use and a completely Kiwi-owned bank. They are usually found in most NZ Post Shops nationwide. This means they have convenient opening hours and some are even open on weekends.
So you can do your banking, bill payments and postage tasks all in one place.
Yay for multi-tasking.
- Kiwibank offer their Free Up account which is an online electronic based account. Bank online, by phone, by ATM or by TXT. You get an EFTPOS visa debit card and can open the account online, by phone or in branch. Choose to receive your statements by email and there are no monthly account fees.
- Kiwibank also offer their Now account which is their standard, everyday account. This accounts features include all the usual stuff; phone, online and mobile banking, an EFTPOS card and choice of statement options. However you will get charged some kind of monthly fee for this account.
Both of these Kiwibank accounts offer Smart Services such as PayStream, Sweep and Alerts and both Kiwibank accounts can be opened online.
As with all Post Offices around the world, expect long queues, always.
If you’re on a student visa or a longer work visa, you can open a Kiwibank bank account before you arrive in New Zealand.
Opening a Bank Account in New Zealand for Travellers: How to Apply for a Bank Account in New Zealand
In these current days of technological bliss, opening a bank account isn’t a tedious task anymore. Especially not in New Zealand.
Go into the bank, as you’ll need an appointment and ask what documents you’ll need. Usually there are basically 3 or 4 things you’ll need for opening a bank account in New Zealand:
- Photo I.D (Your passport is the best, drivers licence is sometimes accepted – to make sure, take both.
- Proof of address
- Copy of your current visa (not always required)
- Around $10 to deposit as an opening balance (also not always required)
I know what you’re thinking. “Hmmm…I just arrived in New Zealand and I’m staying at hostel/hotel – how the frick am I supposed to show proof of address?
The first thing you should try to get ‘proof of address’, is to ask the hostel you are staying at. A lot of hostels are very understanding about problems that travellers encounter when trying to settle in.
Some hostels won’t do this, but some are more than happy to provide a letter stating you currently reside at that address. Some charge a small fee but it’s worth it.
Top tip – You may have more luck getting proof of address at independent hostels rather than the chain hostels.
Opening a Bank Account in New Zealand: Details to Give to Your Employer
In the UK, the banks print your sort code and bank account number on your debit card. So I just used my card and never needed to carry around my account details.
However in New Zealand, the details are not on the front of your EFTPOS debit card. So I had to get used to keeping a paper copy of my New Zealand bank account details, so I could fill out forms or job applications wherever I was.
Keeping it somewhere in your smartphone is handy, but remember never to write PIN numbers down anywhere – not even in your phone.
All New Zealand bank account numbers follow this pattern:
00 0000 0000000 000
- The first two numbers show which bank manages the account. Westpac is 03.
- The next four digits show your branch.
- Then the next seven digits show your account number.
- Finally the last three digits (or two digits for some banks) show your account suffix. You can have several “Sub accounts” from one main account. If your account suffix has two numbers and you’re being asked for three, add a zero before it.
Tip – If you’re unsure what to write when you’re entering your account details for a new job, just enter the whole 14 digit number in the format above.
When you’re in the branch opening your bank account, they will set you up for online banking and phone banking. They’ll also give you a print-out of your account details for you to keep and a letter with your account details on, to give your employer.
Applying for your IRD number in New Zealand for Travellers
The bank will probably ask you for your IRD number. It’s all good if you don’t have it, you can still open and use your account. Although as soon as you receive your IRD number, let the bank know so they can apply the correct tax code.
Have you got your IRD number or are you thinking, what the frack is one of those?
The Inland Revenue is the tax authority for New Zealand. To work in New Zealand, you need an IRD number, this number is unique to you and will remain the same always.
You can apply online and your IRD number will be sent to you in 8-10 working days after they receive your application.
When you start working, your employer will give you a tax code declaration form IR330 to fill in. Make sure you give your employer your IRD number.
You’re a non-resident for tax purposes if you’re staying in New Zealand for 183 days or less in any 12-month period. If you’re here for the whole 12 months, you’ll be classed as a resident for tax purposes.
Remember: You need to have a New Zealand bank account first to be able to apply for your IRD number. So after getting your bank account, apply for your IRD number next and you’ll be sweet!
Happy and Safe Travels 🙂
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