How to Open a USD Bank Account from New Zealand
Our comprehensive guide compares the options for opening a USD bank account that is hassle-free and efficient. We explain the process step-by-step to let you move forward with confidence.
Updated 24 December 2024
Summary:
To help you understand your options before you leave for the UK, our guide covers:
Disclaimer: Wise is a non-bank payment provider.
Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
Summary:
- Many MoneyHub readers ask how to open a USD account in New Zealand. They have no intention of moving to America but want to be able to receive USD payments from investments, trading, side-hustle income, etc. This guide is the answer to such queries.
- The choices are straightforward - it's a choice between fast and hassle-free setups with platforms like a Wise USD account or Revolut USD Account. You can open a USD account without needing a US address or tax identification number, load it with USD, and send or receive payments internationally at low fees.
- For years, MoneyHub's team members, friends, and family have praised Wise for its ease of use, low-cost money transfers, and flexibility. However, Revolut, which arrived in New Zealand much later, has also been well received.
- You can also explore traditional USD accounts through New Zealand banks, but they often involve unnecessary delays, fees and limitations. However, these can charge up to NZ$12 each time someone sends you a USD payment - a total ripoff.
- With Wise or Revolut, you get instant USD functionality, the ability to transact globally, and no per-transaction fees every time you are paid.
To help you understand your options before you leave for the UK, our guide covers:
- Step-by-Step Guide to Opening a USD Bank Account from New Zealand
- USD Income and New Zealand Income Tax - What You Need to Know
- Frequently Asked Questions
Disclaimer: Wise is a non-bank payment provider.
- Per its website, Wise is not a bank. It is based in the UK, licensed as an Electronic Money Institution, and regulated by the Financial Conduct Authority (FCA), much like banks are. Wise does, however, function in a similar way to any bank. It operates globally and has tens of millions of customers.
- When you put money in your Wise account, it's kept in bank accounts completely separate from the ones used in the everyday running of the business. Wise is a multi-billion dollar company with its shares traded on the London Stock Exchange. However, New Zealanders have asked about the safety of their Wise account money (as outlined by this Reddit post from December 2022) which further explains how Wise operates.
- We remind MoneyHub users that a Wise account doesn't allow direct debits and overdrafts - it's functionality lets you make and receive USD payments, and send USD to and from New Zealand.
Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
MoneyHub Founder Christopher Walsh shares his views on opening a USD Account:
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"There are two ways to approach getting a USD account: the fast, hassle-free app-based way where you can receive payments, hold USD, and spend it anywhere (option 1), or the traditional NZ bank route, which often comes with high fees, strict requirements, and long processing times (option 2).
If you want to minimise costs and save yourself the trouble of managing irregular income or payments, I suggest strongly considering option 1 with Wise or Revolut. For example, Wise offers a USD account that's ready in minutes. You don't need a US address or tax identification number; you can sign up from New Zealand. Once set up, you'll receive a USD account with bank details that allow you to get paid like a local. You can also hold multiple currencies, use a low-cost debit card, and track all payments via an intuitive app. What makes Wise stand out is how cost-effective it is. Transferring NZD to USD - or any currency - comes with some of the lowest fees on the market, and the transfers are near-instant. There's no cost to get a Wise account, unless you want a physical debit card, which is a one-off NZ$14. My view is clear: if you're looking for flexibility, convenience, and an affordable way to handle USD, Wise and Revolut are the best options. They eliminate the complications of traditional banking while giving you all the tools to manage your finances seamlessly". |
MoneyHub Founder
Christopher Walsh |
Warning: Beware of USD Account Scams
- Are you being asked to set up a USD account as part of an investment opportunity, online coaching program, or other offer? Please think twice. Unfortunately, scams targeting New Zealanders often include claims that opening a USD account will unlock lucrative returns or exclusive deals.
- The reality is that these offers are frequently fraudulent. Scammers prey on trust, promising big rewards while pushing you to create accounts and transfer money. Once the money is sent, it’s often impossible to recover.
Warning signs include:
- High-pressure tactics urging you to open a USD account immediately.
- Promises of guaranteed profits from overseas investments or trading platforms.
- Requests to deposit large sums of money into the account as a “holding” requirement.
Our advice is simple: do your research and avoid creating accounts or transferring money unless you are 100% confident in the legitimacy of the offer.
Step-by-Step Guide to Opening a USD Account from New Zealand
As outlined below, New Zealand banks offer USD accounts, but the process is slow and costly, with limited functionality. By contrast, Wise and Revolut provide a seamless setup, low fees, and speed - key advantages for anyone needing a USD account without delays, ongoing hassle and fees. Neither traditional banks nor platforms like Wise and Revolut allow overdrafts or direct debits, so it’s essential to plan your cash flow accordingly.
1) App-based options:
Platforms like Wise and Revolut excel in offering USD accounts with unparalleled speed and cost-effectiveness. You can set up an account in minutes, enjoy low transfer fees, and hold multiple currencies without the excessive fees charged by traditional banks. The ease of access, transparency, and added functionality (like physical and virtual debit cards) make these platforms the best option for New Zealanders needing USD transactions.
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Wise
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Revolut
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2) New Zealand bank options:
New Zealand banks allow you to open USD accounts, but they come with significant downsides: often high fees for receiving payments, uncompetitive exchange rates, and limited functionality. Unlike Wise or Revolut, banks don’t provide debit cards or fast international payments. For this reason, app-based platforms are the clear winners.
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ANZ
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ASB
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BNZ
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Kiwibank
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Westpac
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Important: If you're planning to transfer money from a New Zealand bank account to a USD account, it's crucial to consider the varying fees and foreign exchange rates between different services. Wise and Revolut, for example, are much more cost-effective than traditional banks given the market FX rates and low fees.
MoneyHub Founder Christopher Walsh shares his views about using a Wise Account:
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MoneyHub Founder
Christopher Walsh |
USD Income and New Zealand Income Tax - What You Need to Know
If you're earning income in USD as a New Zealand resident, it's still subject to New Zealand income tax. The Inland Revenue Department (IRD) requires you to report all income, including foreign currency earnings, on your annual tax return.
The process is as follows:
Our View: MoneyHub is not a tax accountant, lawyer or adviser and does not respond to emails asking us for tax advice. We suggest contacting the IRD for guidance if your situation is non-standard and/or if you have specific questions.
The process is as follows:
- Convert USD to NZD for Tax Purposes: All USD income must be converted to NZD using the IRD's approved foreign exchange rates when the income is earned. You don't have to convert the money if you don't want to physically; you just need to value the USD in NZD for tax purposes.
- Declare All USD Income: Whether from freelancing, remote work, or other sources, you must declare your USD income in your New Zealand tax return.
- Foreign Tax Credits: If tax has already been withheld on your USD income in the source country (e.g., the US), you may be eligible for foreign tax credits under double-tax agreements between New Zealand and the US. These credits are designed to reduce the tax you owe in New Zealand and avoid paying income tax twice.
- Keeping records: You must keep accurate records of your income, exchange rates, and associated fees for at least seven years. Wise and Revolut, for example, offer downloadable statements, which simplify this process.
Our View: MoneyHub is not a tax accountant, lawyer or adviser and does not respond to emails asking us for tax advice. We suggest contacting the IRD for guidance if your situation is non-standard and/or if you have specific questions.
Frequently Asked Questions
As a New Zealander, you can open a USD account with services such as Wise and Revolut, and banks such as Kiwibank, Westpac, ANZ, ASB and the BNZ. The questions below are published to help make sense of related concerns.
Know This: With Wise and Revolut, you can receive USD payments, hold the balance, and convert it when needed. Both services allow you to spend directly in USD or convert to other currencies at competitive rates, avoiding hefty fees for frequent or irregular transactions.
Know This: With Wise and Revolut, you can receive USD payments, hold the balance, and convert it when needed. Both services allow you to spend directly in USD or convert to other currencies at competitive rates, avoiding hefty fees for frequent or irregular transactions.
Can I open a USD account from New Zealand without a US address?
Yes - you can open a USD account without a US address using services like Wise, Revolut or any NZ bank offering USD accounts. Wise and Revolut are platforms designed for global accessibility and don't require proof of residence in the US.
What are the best options for New Zealanders looking to open a USD account?
Popular options are services like Wise and Revolut for simplicity and cost-effectiveness. Alternative options, which will be more expensive and not as user-friendly, are USD accounts from Kiwibank, Westpac, ANZ, ASB, and BNZ if you prefer local options.
Wise and Revolut stand out for their ease of use, low fees, and ability to hold and transact in multiple currencies, including USD. Traditional banks may allow you to open a foreign currency account, but they often come with higher fees and less favourable currency conversions (per our extensive research into travel money and sending forex.
Wise and Revolut stand out for their ease of use, low fees, and ability to hold and transact in multiple currencies, including USD. Traditional banks may allow you to open a foreign currency account, but they often come with higher fees and less favourable currency conversions (per our extensive research into travel money and sending forex.
Can I transfer money between my New Zealand and USD accounts easily?
Yes - services like Wise are specifically designed for efficient money transfers. Wise uses the mid-market exchange rate (the real rate you see on Google) and charges a small, transparent fee, making it far more competitive than traditional banks. Traditional banks, by contrast, often inflate exchange rates and per-transaction fees, meaning USD payments coming into your USD account will be hit with fees every time a transaction is made.
Are there fees associated with USD accounts?
The fees depend on the platform or bank you choose. Wise doesn't charge any account maintenance fees and offers some of the lowest transfer fees on the market. For example, you'll pay only a small percentage fee to send money between currencies, and there's a one-time NZ$14 cost for a physical debit card (if you want one). New Zealand banks offering USD bank accounts charge high fees for transactions like transfers and currency exchanges.
Will I earn interest on my USD account?
Most USD accounts, including those from Wise and Revolut, do not offer interest on balances. However, some banks may provide nominal interest rates for USD savings accounts.
Is it possible to have a physical USD debit card with a USD account?
Yes - both Wise and Revolut offer physical debit cards linked to your account. Wise charges a one-time fee of NZ$14 for the card, which can be used globally for USD and multi-currency transactions. Revolut also provides physical and virtual cards, depending on your plan. These cards allow you to spend in USD directly or in other currencies at the best exchange rates.
How does Wise, for example, compare to traditional banks for USD accounts?
Wise offers a modern, transparent alternative to traditional banks. While traditional banks may require extensive documentation, charge higher fees, and offer less favourable exchange rates, Wise is designed to be quick and cost-effective. New Zealand banks won't give you a debit card with your USD accounts, nor will you be able to make payments freely. You can set up an account in minutes, transfer money at the real exchange rate, and avoid hidden fees.
How long does it take to set up a USD account?
With Wise and Revolut, you can set up an account in about 15-20 minutes. New Zealand banks require more time and are arguably not as dynamic in their onboarding as Wise or Revolut.
MoneyHub Founder Christopher Walsh shares his views about using a Wise Account:
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MoneyHub Founder
Christopher Walsh |
