Millions of dollars leave New Zealand every week as migrants send money home to family. Using your bank’s international wire transfer is the most convenient option — and consistently the most expensive. Specialist providers charge a fraction of the cost and often settle faster.
For most transfers, Wise offers the best combination of low fees and real mid-market exchange rates. For transfers over $10,000, OFX charges no fees at all and offers competitive rates. Avoid using your NZ bank's standard international wire — the combination of flat fees plus poor exchange rates can cost 3–5% of the transfer amount.
Cost Comparison — Sending $1,000 NZD Overseas
Rates vary daily. The comparison below is illustrative based on typical spreads:
| Provider | Fee | Exchange rate | Typical cost |
|---|---|---|---|
| Wise | $6–$9 flat | Mid-market (real) rate | ~0.6–1% total |
| OFX | $0 over $1,000 | Slightly below mid-market | ~1–1.5% total |
| Western Union | $5–$15 | Below mid-market | ~2–3% total |
| Remitly | $3–$4 | Varies by corridor | ~1–2% total |
| ANZ / ASB / BNZ | $9–$25 flat | 2–3% below mid-market | ~3–5% total |
| Kiwibank | $15 flat | Below mid-market | ~3–4% total |
On a $1,000 transfer, using a NZ bank vs Wise can cost $30–$50 more. On regular monthly transfers, that’s $360–$600 per year.
Wise (Formerly TransferWise)
Wise is the most popular international transfer provider in NZ. It uses the real mid-market exchange rate (the one you see on Google) and charges a small transparent percentage fee.
How it works:
- Create a free Wise account (app or website)
- Enter how much you want to send and the destination country/currency
- Wise shows you the exact fee and the recipient will receive — before you commit
- Pay via NZ bank transfer (or debit/credit card — fees are higher)
- Transfer typically arrives in 1–2 business days (often same day to popular corridors)
Best for: Regular smaller transfers ($200–$5,000), people who want full transparency, and those sending to popular corridors (UK, India, Philippines, South Africa, Europe).
Wise NZ limitations:
- Not all currencies or countries are supported
- Card payments attract higher fees than bank transfer
- Wise is not a full NZ bank
OFX
OFX is an Australian-founded company with a strong NZ presence. For transfers over $1,000, OFX charges no transaction fee — they make money on the exchange rate spread alone.
Key features:
- No fees on transfers over $1,000 NZD
- 24/7 NZ-based customer service
- Rate lock (forward contracts) — lock in today’s rate for transfers up to 12 months ahead
- Regular payment plans for ongoing remittances
Best for: Larger, less frequent transfers ($5,000+), and anyone wanting to lock in exchange rates in advance (useful if sending money for rent, mortgage, or business payments overseas).
Remitly
Remitly specialises in sending money to developing economies — Philippines, India, Pakistan, Mexico, and other major remittance corridors.
Key features:
- Very competitive rates on specific corridors
- Express delivery option (often minutes for bank or mobile wallet delivery)
- First-transfer promotions (often fee-free or better rate for new customers)
- App-based and easy to use
Best for: Sending money to the Philippines, India, Pacific Islands, or other developing economy destinations where Remitly has dedicated corridors.
Western Union
Western Union is the most globally recognised name in remittances and is available in many countries without bank accounts (cash pick-up).
Key features:
- Cash pick-up available in almost every country
- Very wide global reach including remote areas
- Mobile wallet delivery in some countries
Best for: Sending to recipients who don’t have a bank account, or in countries where bank transfers are unreliable.
Drawback: Exchange rates and fees are less competitive than Wise or OFX for standard bank-to-bank transfers.
Your NZ Bank — When It Makes Sense
Your NZ bank is rarely the best option for cost, but it can be convenient for:
- One-off urgent transfers where you need certainty and immediate access to support
- Large business transfers where your bank relationship matters
- Countries with sanctions or restrictions where specialist providers may not operate
All major NZ banks (ANZ, ASB, BNZ, Westpac, Kiwibank) charge a flat international transfer fee ($9–$25) plus apply an exchange rate margin of typically 2–3% below mid-market. For regular remittances this adds up significantly.
Tax and Legal Considerations
Is sending money home taxable?
No — sending your own money overseas is not a taxable event. There is no NZ remittance tax. You can send as much of your after-tax income as you want to overseas family members.
What about gifts?
NZ has no gift tax. Sending money as a gift to family overseas is perfectly legal and not taxable in NZ.
Foreign income rules
If you’re receiving money from overseas into NZ (e.g., overseas investment returns, rental income, foreign salary), different rules apply — this may be taxable in NZ depending on your tax residency status. See moving to NZ finances for transitional resident rules.
AML requirements
New Zealand’s anti-money laundering (AML) legislation requires transfer providers to verify your identity and may require explanation of the purpose of large transfers. This is standard compliance — keep receipts and be prepared to explain the source of funds for transfers over $10,000.
Tips for Regular Senders
Set up an automatic payment: Most specialist providers (Wise, OFX, Remitly) allow recurring transfers. Set it up once, money goes automatically each month.
Compare before each transfer: Exchange rates move daily. If you’re transferring a large sum, check multiple providers on the day.
Consider a rate alert: OFX and some other providers allow you to set a target exchange rate — they notify you when the rate hits your target.
Forward contracts for large amounts: If you know you’ll need to send a large sum in the next few months (e.g., buying property overseas), OFX and similar providers let you lock in today’s rate.