Westpac Foreign Currency Account: Features, Fees, and How to Open

When you’re regularly sending and receiving funds in another currency, or want to hold and save it, having a foreign currency account can make managing your money much easier. It takes away the need to convert back and forth between the foreign currency and NZD, often saving time and working out to be cheaper.

In this guide, we’ll take a look at how the Westpac Foreign Currency Account works, including which currencies are supported, what it costs, and how to open one. We'll also introduce you to the Wise account, that lets you hold and manage 40+ currencies all in one place.

What is a foreign currency account?

A foreign currency account is a type of bank account that enables you to hold money in currencies other than NZD, such as AUD, USD, EUR, or GBP. Which currencies are supported can vary between providers, and some accounts may support multiple currencies in one, rather than just being one account for one currency.

Having a foreign currency account can be particularly useful for people who need to manage money across borders, including those who:

• Get payments from overseas clients, employers, or business endeavours
• Need to pay foreign suppliers or invoices
• Have family who live abroad
• Want to hold foreign currency to spend later or hedge exchange rates

There are several factors to consider when searching for the best foreign currency account.

• Currencies: Check which currencies are supported, and whether the account supports multiple currencies, or just one currency per account
• Fees: Find out what the account maintenance, transfer, and currency conversion fees are
• Exchange rate: Aim for the mid-market rate, always checking if the bank adds a margin
• Transfer methods: Find out how you can send money in and out of the account, including whether local transfers are supported
• Accessibility: Check if the account can be managed online, via an app, in branch, over the phone, or via a combination of these
• Eligibility: See what you need to do to be able to open an account, and whether it’s possible to open one online or if you need to go into a branch.

At the end of the day, the best foreign currency account for you will be one that’s cost effective, and has the features that meet your needs.

Westpac Foreign Currency Account: Overview

The Westpac Foreign Currency Account is a New Zealand bank account that allows people to hold funds in various major currencies, with each account supporting one currency for sending, receiving and holding.¹

• Australian dollar
• British pound sterling
• Canadian dollar
• Euro
• Hong Kong dollar
• Japanese yen
• Singapore dollar
• Swiss franc
• United States dollar

Depending on the currency, you can earn interest on the balance. There’s no account maintenance fees to worry about, and whenever you want to do something with the account, it can be done through your Westpac digital banking.

Westpac Foreign Currency Account: Fees and limits

As you would expect, there are some fees associated with using the Westpac Foreign Currency Account. These are some of the main ones to be aware of.

If you haven’t heard of a telegraphic transfer, it’s a way to send money between banks that’s typically used for international transfers. It’s considered safe and secure, but can take a few days and may involve fees charged by the sending, intermediary and receiving banks.

With Wise you can do telegraphic transfers, but you also get local account details for 8+ currencies including AUD, USD, EUR and GBP. These allow you to send and receive money like a local, which is generally much more cost effective than a telegraphic transfer.

In terms of limits, the Westpac Foreign Currency account can be opened with any amount of money, there’s no minimum balance.

Westpac’s exchange rate

Westpac uses their own exchange rate, not offering an explanation for how they determine it. Wise on the other hand uses the mid-market rate. This is the mid-way point between the buy and sell prices on the global currency market, which means there’s no mark-up.

To figure out whether the Westpac exchange rate represents a good deal, you’re best to compare it to other providers. As an example, here’s how the rates for converting from NZD to various foreign currencies with Westpac compared to Wise at the time of writing.³

When it comes to converting NZD to a foreign currency, you want the higher number as it means you’re getting more money for your NZD. While a couple cents may look like a small difference for 1 NZD, it adds up when you’re converting larger amounts. For example, 1000 NZD converted at this Westpac rate is 863.50 AUD, while the Wise rate gives 880.90 AUD.

Going back to whether or not Westpac’s rate includes a margin, take a look at the rates across all currencies. At the mid-market rate Wise consistently offered a better rate than Westpac, indicating that Westpac does include a margin.

How to open a Westpac Foreign Currency Account

To be eligible to open a Westpac Foreign Currency Account, you must already have a transaction or saving account with the bank.

If you decide to go ahead and open one you can’t complete the process online, instead you’ll need to visit a Westpac New Zealand branch or reach out to your relationship manager.

Summary

The Westpac Foreign Currency Account is a viable option for New Zealanders who want to hold money in one of the supported foreign currencies.

On the plus side, it’s backed by one of New Zealand's biggest banks, and is easy to access and manage online. However, the exchange rate appears to include a margin and you have to open an account for each new currency, as well as holding a savings or transaction account. As an alternative, it’s worth considering the Wise Account.

Hold and manage 40+ currencies with the Wise account

The Wise account is an easy way to save up to 7x when you send, spend, and withdraw money internationally. Hold and manage 40+ currencies, including NZD, USD, EUR, and more. All you need to do is sign up for a free account to get started, there's no monthly fees either.

You can exchange currencies at the mid-market rate on every conversion — basically the rate you see on Google. And with zero foreign transaction fees, and low, transparent pricing, Wise usually gives you the best value for your money.

You'll get 8+ local account details in NZD and a selection of other global currencies to get paid conveniently to your Wise account. And when it's time to send money abroad, enjoy fast, low-cost transfers to 140+ countries. Plus, you can get a linked Wise debit card for spending internationally at the same great mid-market rate.

When it comes to managing money globally, the Wise account is a handy tool that makes it easier and simpler.

🚀 Open your Wise account