Best Bank for Indian Expats in New Zealand: Indian Banks in NZ and Alternatives for NZ NRIs

New Zealand has been a well-known destination for the Indian diaspora for decades. You can find a healthy Non-resident Indian (NRI) population, including many students, who have settled in New Zealand. Getting set up with a bank in the country is an important part of settling in locally. Learn more about the best banks for Indian expats in New Zealand and easy ways to send money to India from overseas.¹

Using your Indian accounts in New Zealand

Once you land in New Zealand, you’ll need access to funds to get established in the country. For example, students need bank accounts to receive remittances from India to pay tuition or secure housing. Working employees will need to set up a way to receive their salaries and make payments in New Zealand dollars.

It can be tempting to use your local Indian account when in New Zealand. You can do this by activating international payments and transfers from your existing bank account in India. Another option from your Indian bank is to get a card specifically for overseas use. However, both options can end up costing you more than you think.

Indian banks can charge high fees and markups on mid-market exchange rates, making the conversion to New Zealand dollars unsustainable for day-to-day expenses. It makes better financial sense to open an account in New Zealand when you move here.

Maintaining a relationship with your Indian bank does make sense and is advantageous for NRI accounts specifically. Many popular Indian banks offer Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts to save or invest in India.

What should NRIs look for in their New Zealand account?

New residents of New Zealand will find there are many different banking options, including ones that cater to the NRI community. Here are a few options to consider:

• You can open a bank account in a local New Zealand, regional bank or credit union. The popular options include the Bank of New Zealand, ANZ Bank and Kiwi Bank.

• Indian banks like the Bank of India and the Bank of Baroda have subsidiaries in New Zealand, which means NRIs can open accounts, take loans, and transfer money to India.

• For an non-banking alternatives checking Wise for your NZD account, that allows convenient international transfers.

For NRIs, the ability to grow their money in New Zealand and to send funds back to India are often high priorities. When comparing banking options, NRIs should look for features that fit their goals. Here are other points to think about when choosing a bank in New Zealand:

• An uncomplicated process to open a local bank account.
• Holding money in other currencies besides New Zealand dollars. Many banks offer accounts that can be held in US dollars.
• Convenient international fund transfers with low fees and transparent exchange rates.
• Access to a debit card to make payments seamless.
• The facility to use the card at ATMs worldwide and get cash in multiple currencies without incurring high fees.
• Ability to use a travel or debit card when travelling internationally, including in India.

There are multiple options. Read on to learn more about Indian banks, local banks, and credit unions in New Zealand. We'll also touch on Wise, a non-banking alternative, that offers a convenient NZD account for NZ expats with roots abroad.

Indian Banks in New Zealand

Two prominent banks in India, Bank of India and Bank of Baroda, have branches in New Zealand that cater to the banking requirements of NRIs.

Bank of India has a wholly owned subsidiary in New Zealand, Bank of India New Zealand (BOINZ). BOINZ has two branches in New Zealand, in Auckland and Papatoetoe, and offers extensive services like deposits, loans, and international fund transfers.²

Bank of Baroda is the first Indian banking entity established in New Zealand. It has a wholly-owned subsidiary, Bank of Baroda (New Zealand). BOBNZ offers various banking services, including a personal remittance product, Rapidfunds2India, which lets account holders transfer money to India seamlessly.³

Advantages of Indian Banks

While NRIs in New Zealand can open bank accounts in any bank in the country, Indian banks can be particularly useful:^4,5

• Existing familiarity with the bank can make the experience smoother.
• There is often no minimum opening balance requirement when opening a bank account, but you must maintain the minimum balance requirements.
• Opening and managing NRE/NRO accounts from New Zealand becomes more convenient if you maintain accounts with Indian banks.
• Convenient online banking and debit cards.
• You can open your savings account in NZ dollars or US dollars.

Most importantly, remitting money to India becomes easier. For example, Bank of Baroda New Zealand offers the Rapid Finds2India facility, allowing instant credit to your Bank of Baroda account in India. Same-day credit is available to branches of other banks in India. Bank of India New Zealand has a similar offer with four free remittances a month.

Bank of Baroda and Bank of India, have branches in New Zealand:

Bank of Baroda New Zealand

Bank of Baroda New Zealand offers convenience for NRIs with existing relationships with the bank and those who are new. Bank of Baroda New Zealand has two branches in the country:⁶

1. Auckland Branch - 114 Dominion Road, Mount Eden, Auckland 1024
2. Wellington Branch - 55, Featherston Street, Wellington 6011

Our Guide to Bank of Baroda in NZ 👉

Bank of India New Zealand

Bank of India New Zealand offers multiple facilities to expat NRIs. They include deposits, loans, and same-day remittances to India. Bank of India New Zealand has two branches in New Zealand.⁷

1. Auckland Branch - 10 Manukau Road, Epsom, Auckland 1023
2. Papatoetoe Branch - 31 East Tamaki Road, Papatoetoe 2025

Our Guide to Bank of India in NZ 👉

Local Banks in New Zealand

Opening an account at a local bank in New Zealand can be a good option if you are looking to stay in the country for the near future.

Our Guide to Top Banks in NZ 👉

NRIs will want to consider banks that make it cheap and easy to send money to India. Click here to compare the cost of sending to India through some of the top providers in New Zealand.

Credit Unions in New Zealand

In addition to banks and service providers like Wise, New Zealand has credit unions to cater to local banking needs. Unlike banks, credit unions are generally member-owned, which means you must be a member to apply.

Credit unions in New Zealand operate under the Friendly Societies and Credit Unions Act and offer services like savings, insurance, and personal loans. They are less widely known than banks but provide an ideal alternative for members seeking higher interest on deposits and better loan rates.

Some of the top credit unions in New Zealand include NZCU, Nelson Credit Union, Westpac Richmond, and Nelson Kiwibank.

Here are the pros and cons of credit unions.

Pros of a Credit Union

• Member Ownership—People who use the services of credit unions are also their owners. This structure allows for decisions to be made in the best interests of their members.
• Focus on Community—Credit unions have a strong community focus, serving specific groups or residents in a particular region. This localised approach allows better tailoring of services to meet the unique needs of their members.
• Competitive Interest Rates - Since credit unions are member-owned, they pass the benefit of better rates to their members. They generally offer better interest rates on savings and competitive mortgage rates than banks or online providers.
• Personalised Service - Credit unions are typically small to medium size which can help you get personalised customer service.

Cons of a Credit Union

• Limited Branch Network - Compared to banks, credit unions have a smaller physical presence, often localised to specific regions. This can be inconvenient for members looking for branches in other parts of the country.
• Fewer Services—Credit unions offer services like savings deposits, personal loans, and mortgages but may be limited in investments or more complex offerings. In contrast, banks offer an extensive range of services to their customers.
• Technology and Innovation—Credit unions generally do not invest in technology and digital banking features. So, mobile apps, online banking platforms, and other digital conveniences may not be as robust as banks offer.
• Membership Criteria—Credit unions provide services that only Members can use. Membership criteria can be restrictive since they serve specific communities or regions.

Meet Wise: a convenient alternative for NRIs

Wise makes money transfers low-cost and easy for NRIs living in New Zealand. With a Wise Multi-currency account - available for residents in New Zealand - you can get NZD details and receive salary and payments into your Wise account. For international transfers, Wise charges only one low transfer fee and the mid-market exchange rate. That means there are no extra markups on the exchange rate.

The multi-currency benefits of the Wise account enables you to send, spend or hold in over multiple currencies, including Indian Rupees. Plus, with a linked debit card, you can spend like a local - even when you travel internationally.

Next time you head to India, keep your Wise card with you to make payments locally in Indian Rupees. It is that easy.

Get Started with Wise