Open an NZ bank account

Why it matters

• Immigration New Zealand says you will need a New Zealand bank account and IRD number to pay tax.
• The Deposit Takers Act 2023 sets compensation for a depositor's protected deposits at up to $100,000, or a higher temporary limit if one applies.
• The Financial Markets Authority says every business that offers financial services to retail customers must belong to an independent dispute resolution scheme, which can give a free, independent view on a complaint.

Steps

1. Have your ID ready. The AML/CFT Act says a bank must collect your full name, date of birth and address, and verify your identity, normally before it takes you on as a customer.
2. Once you have your IRD number, give it to your bank. Inland Revenue says interest is taxed at 45% if your bank doesn't have it.
3. Choose a resident withholding tax (RWT) rate for your interest. Inland Revenue says that if you don't choose one, tax is deducted at 33%.
4. If you're moving as a couple and open a joint account: Inland Revenue says you can only use one RWT rate for it.

Documents you'll need

• ID the bank can use to verify your full name and date of birth
• Your address, which the AML/CFT Act says the bank must collect
• Your IRD number, once you have it

Common mistakes

• Choosing an RWT rate that doesn't match your income tax rate. Inland Revenue says you may get an end-of-year tax bill.
• Sending money overseas before you've checked who you're paying. Consumer Protection says it's very difficult to get money back once it has been sent overseas.

Watch out for

• Consumer Protection says scammers may pretend to be from a reputable company, a bank or a government agency.
• Sorted says three agencies hold credit data in New Zealand, you can get a free copy of your credit report from each, and checking your own report doesn't affect your score.

Sources