Currency Exchange
New Zealand's #1 guide for comparing travel money and saving on currency exchange when spending overseas
Updated 31 March 2020
Currency Exchange Must-Know Tips
- Don't wait until the airport to change New Zealand dollars into foreign currency, - the rates and fees are awful. A little planning could save hundreds of dollars.
- Beware of fees, commissions, bad exchange rates and other tricks when using currency exchange kiosks in New Zealand and overseas.
- Most banks consistently offer very similar exchange rates at any one time, but not all will have sufficient currency in stock.
- The right credit cards consistently provide the cheapest way to spend abroad, specifically Kiwibank's offering.
- Always pay in the local currency when using a card - this avoids 'Dynamic Currency Conversion' which can sting you at overseas ATMs and merchants who offer lousy conversions to the New Zealand dollar.
- Both the ASB and Kiwibank will buy back foreign currency at reasonable exchange rates without a fee.
- Our guide to Travel Money Cards outlines the best buys and whether a credit card is more suitable for your needs
- MasterCard offers better foreign exchange rates compared to Visa according to our research
- Want today's exchange rates? Our currency converter has live NZD FX rates, 24/7
We've put this guide together because a competitive exchange rate will help you get more travel money to take with you overseas.
This guide covers:
This guide covers:
- Currency Exchange Basics
- Where to Buy Foreign Currency?
- What is The Best Way to Spend Overseas? Cash, Cards and a Travel Money Card
- 10 Must-Know Tips to Make Your New Zealand Dollars Go Further Overseas
- Buy Forex Like a Pro if You Need to Use Banks and Forex Booths
- Avoid Sneaky 'Dynamic Currency Conversion' when Withdrawing from an ATM Overseas or Making a Purchase at a Retailer
Currency Exchange Basics
What is foreign currency?
It is the currency you use to pay for things abroad, instead of New Zealand dollars. For example, in Australia, the foreign currency you would use is Australian dollars, and in most of Europe, it would be the Euro. What foreign currency you need depends on where you are travelling to. You can buy foreign currency before you leave New Zealand at money changers and banks.
What is an exchange rate?
An exchange rate tells you how much foreign currency you can get in exchange for your existing currency. For example, if the New Zealand dollar to Australian dollar exchange rate was 0.90, you would get 0.90 Australian dollars (or 90 cents) for every New Zealand dollar you exchanged. You will often see this written as NZD/AUD or NZD:AUD.
Which exchange rate is better?
The higher the exchange rate, the better. For example, 0.92 is a better exchange rate than 0.89.
Why are exchange rates different between banks?
Like all banking products, banks charge different fees. Exchange rates are no different - for example, you may see NZD:AUD at 0.90 advertised at one bank, and 0.91 at another. You'll need to consider the transaction fee as well, usually a fixed $5 or $10, to get the most foreign currency for your New Zealand dollars.
Which exchange rate is better?
The higher the exchange rate, the better. For example, 0.92 is a better exchange rate than 0.89.
Why are exchange rates different between banks?
Like all banking products, banks charge different fees. Exchange rates are no different - for example, you may see NZD:AUD at 0.90 advertised at one bank, and 0.91 at another. You'll need to consider the transaction fee as well, usually a fixed $5 or $10, to get the most foreign currency for your New Zealand dollars.
How much foreign currency to take depends on your visit
How much foreign currency you need depends on how long you are visiting, what you plan to do and what things cost. Set a travel budget on how much you want to spend, and add an extra amount per day to cover emergencies.
Plan how much you expect to spend on the following:
Plan how much you expect to spend on the following:
- Accommodation: Some hotels can be reserved online with the requirement to pay cash at check-out, whereas Airbnb and holiday rentals take card payment at the time of booking.
- Eating and drinking out: snacks, breakfast, lunch, dinner, coffees.
- Shopping: souvenirs, clothing, toiletries.
- Experiences: tickets to events, tourist attractions.
- Transport: Airport bus and taxis.
​Where can you buy foreign currency?
- At a Bank - Most banks offer a foreign currency exchange service, but each branch may be limited in what it has in stock. For example, few banks will stock Japanese Yen or Canadian Dollars despite advertising it.
- Bureau de change (Auckland, Wellington and Christchurch CBDs and at international airports) - In the main streets and malls of larger cities and international airports (inside and outside of New Zealand) you can find foreign currency exchange booths offering to convert your NZ dollars to a foreign currency.
- Online with delivery or collection - a growing number of foreign currency providers have opened up online - customers order the currency they need and pick it up from their closest location or have it delivered by courier for a fee.
- Overseas - You can withdraw money using your debit card or credit card at a foreign ATM (we explain the fees below).
- Using a travel money card - many banks and travel companies offer prepaid travel money cards - these let you make payments and withdraw cash overseas (just like an EFTPOS card would in New Zealand) as you top up the card with NZ dollars.
Know your currency exchange jargon to change money with confidence
Currency exchange has its very own jargon but it's not as complicated as it sounds. Knowing what the terms mean lets you sidestep the rip-offs. Here are some common words explained:
- Sell rate: what you get when you exchange New Zealand dollars for a different currency
- Buy rate: what you get when you exchange leftover foreign currency for New Zealand dollars
- Interbank rate: The exchange rate that banks use between themselves - this is a 'wholesale' rate and always better than what you will be offered, but indicates how much the New Zealand dollar is worth against a particular currency.
- Commission: The fee charged by the foreign currency provider as a percentage of the total value of the foreign currency you are buying for the service of converting your money into a foreign currency. For example, if the commission is 5%, you'll pay 5% of the total value of your purchase in commission.
- Transaction fee: This is a fee for buying the currency from the provider.
What is the best way to spend overseas?
Unless you know the tricks of foreign currency, spending money overseas can end up costing a small fortune in fees. Every trip is different - knowing the best options saves you money, time and hassle.
​How can you spend overseas?
- Cash: Fly over with foreign currency, but make sure to budget your time away correctly to avoid running out of money. Finding the best forex deal before taking off is essential to save money.
- Credit card or debit card: Using a credit card or debit card abroad is popular, but transaction fees apply for each purchase and withdrawing money from an ATM incurs interest on a credit card.
- Prepaid travel money card: These popular cards are flexible; you can load the card via internet banking and use it in shops or withdraw it as cash from ATMs.
- Travellers Cheques: Travellers cheques are largely outdated, increasingly difficult to change overseas and widely unpopular. We do not cover travellers cheques any further in this guide.
1. Using Cash Overseas
Hands down, this is the easiest way to start spending when you get to your destination.
Pros:
Cons:
Pros:
- Can be used anywhere
- Easy to manage - spend what you need, know what's left etc.
- No foreign usage fees
Cons:
- You can lose or have it stolen
- High-value notes can be refused
- If you bring New Zealand dollars, there is no guarantee of getting a good rate, and some locations may not accept them.
Table 1: Bank Currency Exchange Costs Sample as at 21 September 2018 for Purchases of Australian Dollars, US Dollars, Euros and British Pounds (including conversion charges)
ANZ |
ASB |
BNZ |
Kiwibank |
TSB |
Westpac |
|
1000 AUD |
$1,119 |
$1,120 |
$1,118 |
$1,129 |
$1,126 |
$1,130 |
1000 USD |
$1,530 |
$1,539 |
$1,545 |
$1,548 |
$1,545 |
$1,546 |
1000 EUR |
$1,806 |
$1,800 |
$1,800 |
$1,813 |
$1858 |
$1,812 |
1000 GBP |
$2,027 |
$2,020 |
$2,020 |
$2,023 |
$2,023 |
$2,033 |
All foreign currency conversion prices include the below fees, correct as at 21 September 2018:
- ANZ: <NZD100 - $7, NZD 100 - NZD 1,000.00 - $12, NZD 1,000+ - 1.1% of value (minimum $12 fee) per fee schedule
- ASB: 1% NZD of value (minimum $5 for NZ$100 and under, $10 for over NZ$100) per fee schedule
- BNZ: 1% NZD of value ($10 minimum) on all purchases per fee schedule
- Kiwibank: $10 flat fee per fee schedule
- TSB: 1% of NZD value, minimum charge $5 per fee schedule
- Westpac: 1% of NZD value, minimum $10 per fee schedule
- Data file (reference only)
Table 2: Specialist Currency Company Exchange Costs Sample as at 21 September 2018 for Purchases of Australian Dollars, US Dollars, Euros and British Pounds (including conversion charges)
Value |
No1 Currency (Click and Collect) |
Travelex.co.nz |
TravelMoney.co.nz |
1000 AUD |
$1,112 |
$1,121 |
$1,126 |
1000 USD |
$1,521 |
$1,545 |
$1,539 |
1000 EUR |
$1,806 |
$1,805 |
$1,827 |
1000 GBP |
$2,045 |
$2,062 |
$2,058 |
2. Using a Credit Card or Debit Card Overseas
Most debit and credit cards charge you for every transaction you make overseas, but fees do vary between banks (as outlined in the table below) and the best card (Kiwibank's credit card) can cut the cost of your spending overseas.
Debit and Credit cards
Pros:
Cons:
Debit and Credit cards
Pros:
- Chip and pin protection
- Easy to cancel if stolen
Cons:
- In additional to being charged for the transaction at the credit card issuer's exchange rate, you will pay an additional fee of between 1.85% and 2.60% of the value of the transaction (refer Table 3 below)
- Can accidentally go over into overdraft (debit card) or go over the credit limit (credit card) and incur fees
- Can get blocked by your provider
Table 3 - Overseas Currency Conversions Charges - New Zealand Banks
Value |
Kiwibank Credit Card |
ASB Debit & & Credit Cards |
BNZ Debit & & Credit Cards |
ANZ, TSB, Westpac Credit & Debit Cards |
Kiwibank Debit Cards |
Co-operative Bank Debit & Credit Cards |
Currency Conversion Fee |
1.85% |
2.10% |
2.25% |
2.50% |
2.50% |
2.60% |
Fees correct in October 2018, obtained from ANZ, ASB (credit card), ASB (debit card), TSB, ANZ, Westpac, Kiwibank (debit card), Westpac (debit card), BNZ, SBS Bank and the Co-operative Bank
3. Using a Travel Money Card Overseas
Travel Money cards are popular among New Zealanders overseas, offering the benefits of low fees, fixed exchange rates and multiple currencies. Your spending money is prepaid, and you don't need to carry around envelopes of foreign currency when you head off overseas.
Pros:
Cons:
Pros:
- Travel Money cards are safer than cash, and if you lose it, a phone call to the issuer will block it instantly.
- Travel Money cards act like having digital currency in your wallet. For example, you buy 500 Euros, 500 British Pounds, 500 US Dollars. To spend the balance, you use the card when in the countries that use those currencies and the balance is deducted. If you run out of any currency, you can use internet banking and top up. Your New Zealand dollars will be converted to the currency using the exchange rate at the time of your transaction.
- Travel Money cards help you budget - you also can't overspend using them (although a credit card is a good backup in case of an emergency).
- When you load a card with New Zealand dollars, it buys the currency of your choice at a fixed exchange rate. This means if the NZD drops, your purchased currency is locked in and protected so you have certainty over how much you'll have for your trip.
- Travel Money cards don't need credit checks, so anyone of any age can apply for one.
- Some Travel Money cards offer reward points.
Cons:
- The fees - including setup fees ($0 to $20), delivery fees (up to $50), ATM cash withdrawal fees ($2 to $6) and others.
- The commissions - up to ~6% for currencies not loaded
- The exchange rates - often, but not always, offering less value for money than buying foreign currency in cash
10 Must-Know Tips to Make Your New Zealand Dollars Go Further Overseas
NEVER buy foreign currency at an airportAirports currency exchange kiosks have the worst rates on earth, mostly relying on traveller panic about not having any travel money - this Australian article explains the problem. If you have to get your travel money at the airport be careful - you will likely pay much more than withdrawing the same amount overseas on a debit card even if fees are included.
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Avoid being fleeced by foreign currency booths by calculating the total cost BEFORE you change your moneyThis is best explained by MoneyHub user Mike, who recounts his recent experience:
"I bought Australian dollars from a forex kiosk in Little Collins Street, Melbourne. The rate was 0.90 NZD to AUD. I asked how much for AUD 500 and was quoted NZD 600. This seemed high, but I said OK while getting my phone to do the conversion. After I got the money I saw the receipt - there had been a 7% 'commission fee' and charged and a $5 'transaction fee'. I argued and asked for my money back, realising I'd been fleeced $40 with the huge commission. The guy at the kiosk never mentioned the 7% fee and $5 fee, but he argued back that I had accepted the rate when I said 'OK' to the $600 quote. 7% is a MAJOR rip-off, especially when my debit card charges 2.50% if I take money out overseas". If you do purchase foreign currency in New Zealand or overseas from a bank or kiosk, be clear to know the following:
Always calculate what you should pay BEFORE accepting the transaction; read the Pro tips (below) for more details. |
Buy Forex Like a Pro if you need to use banks and forex boothsThe best way to get the best deal for your New Zealand dollars is to:
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Buy some Euros or US Dollars if you can't find the foreign currency you needIf you are going somewhere exotic and can't find the currency you want within New Zealand, consider taking Euros or US Dollars. If you want to have cash in your wallet for emergencies and as a general safety net, Euros are best if you're going to be in Europe (but not in a Euro country) and US Dollars are accepted anywhere else in the world. The US Dollar is the world's most convertible currency and having a few stashed away is a popular way to avoid being stuck with no money if your debit or credit card doesn't work or goes missing.
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Don't fall for the marketing ploysMany forex providers advertise ‘0% commission’, ‘best forex rates’ or ‘guaranteed best rates’ to make people trust them. We believe such claims are often misleading. For example, '0% commission' may be true but the exchange rates offered can be worse than other providers, or there may be a transaction fee lurking around. Be alert and don't be fooled by what you read.
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ALWAYS pay or withdraw in local currency, NOT New Zealand dollarsAvoid sneaky 'Dynamic Currency Conversion' when withdrawing from an ATM overseas or making a purchase at a retailerThis is an easy trap to fall into, but it's not very obvious. Here's why:
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Debit cards are likely to be the WORST way to spend overseasSeveral debit cards offer terrible value for money - not only do they charge a withdrawal fee of $5 or $6 AND a ~2.50% commission on foreign currency withdrawn from an ATM, they can charge PER USE if you tap or swipe them at merchants. This can be as high as NZ$6 - a total rip-off. For this reason alone, using a debit card overseas is a big no-no; credit cards (except at an ATM) and cash work best. If you do need to get cash out from an ATM use your debit card instead of your credit card and get a reasonable amount of money out to water down the $5 or $6 withdrawal fee.
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If you're concerned about the New Zealand dollar tanking, buy foreign currency in advanceThe NZD moves around a lot. If you are going overseas in the future but believe the current rates are good (and you have the money in your account and won't need it), lock it in by advance buying the currency you need. The advantage is your overseas money is sorted, the downside is that the rate could get better later on, and you have to be careful not to misplace the money.
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Don't withdraw money on a credit card - it's expensiveNot only will you pay a transaction charge and a commission, but you'll also pay interest from the second you place your hands on the cash. With cash withdrawal interest rates at around 20% to 25% p.a, you are charged from the moment you take the cash out of the machine. Even if you pay it back on your next bill, you will pay ~1.5% to ~2% on the total cash withdrawn. If you don't repay it, interest keeps being charged until you do.
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Hold on to leftover money - many banks buy it back at reasonable exchange rates, fee-freeIt's very easy to fall into the trap of frittering away leftover foreign currency at airports or on unnecessary items, unsure if and when you'll use it again. However, there is an alternative that is much better - both ASB and Kiwibank will buy back foreign currency at reasonable exchange rates and without a fee (coins are excluded).
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Do you have a currency exchange tip or something you'd like to share with us? We'd love to hear from you - contact our team with your experiences.
Want today's exchange rates? Our NZD FX pages below have the latest rates, updated 24/7:
Want today's exchange rates? Our NZD FX pages below have the latest rates, updated 24/7:
- Australian Dollar Exchange Rate
- American Dollar Exchange Rate
- British Pound Exchange Rate
- Canadian Dollar Exchange Rate
- Euro Exchange Rate
- Hong Kong Dollar Exchange Rate
- Korean Won Exchange Rate
- Indian Rupee Exchange Rate
- Japanese Yen Exchange Rate
- Malaysian Ringgit Exchange Rate
- South African Rand Exchange Rate
- Singapore Dollars Exchange Rate
- Thai Baht Exchange Rate
- Chinese Yuan Exchange Rate