Foreign Currency Account Easily manage foreign currencies
Contents 2 What s a foreign currency account? 2 Why open an ASB Foreign Currency Account? 3 Managing your account 3 What are the fees? 4 Interest and tax 5 How to open an ASB Foreign Currency Account? 5 Minimum opening balances 5 Want to know more?
Get a foreign currency account right next door to your Kiwi one. Choose the easy way to manage foreign currency from New Zealand. 1 1
What s a foreign currency account? A foreign currency account allows you to hold foreign currency in a New Zealand account. An ASB Foreign Currency Account is ideal for individuals and businesses that regularly transact in a foreign currency, or just want to hold foreign currency here in New Zealand. It s easy to set up an on-call account in a wide range of currencies. Easily manage your ASB Foreign Currency Account online, over the phone or at any ASB branch. Why open an ASB Foreign Currency Account? Save on unnecessary conversion costs By transacting through an ASB Foreign Currency Account you can reduce the need to convert foreign currency to and from New Zealand dollars. The cost of conversion will only occur when you convert your funds to a currency other than that of the nominated currency of your ASB Foreign Currency Account. Flexible currency management An on-call account makes funds easily accessible and provides a convenient way to help manage your foreign exchange requirements. 2
Managing your account It s easy to manage an ASB Foreign Currency Account. You can make deposits, withdraw funds and transfer money between accounts easily online, over the phone or at any ASB branch. Online: Use FastNet Classic Internet Banking to view balances, transfer funds between your ASB accounts and make International Money Transfers (IMTs) directly from your personal ASB Foreign Currency Account. Alternatively, use the FastNet Business International module* to view balances and make IMTs directly from your business ASB Foreign Currency Account. Phone: Call the ASB Global Markets team on 0800 806 280 or +64 9 302 3055 to transfer funds between your ASB accounts. Go to any ASB branch to make deposits or withdraw foreign currency cash, foreign drafts and make IMTs. What are the fees? There are fees for depositing or withdrawing foreign cash, withdrawing funds as bank cheques, foreign currency drafts and IMTs, as shown below. Other foreign exchange fees apply**. ASB Foreign Currency Account Fees Base Account Fee Fee in NZ dollars Free Deposit or Withdrawal in foreign currency notes Up to 1% of value, minimum $10.00 Withdrawal by International Money Transfer ( TT or Wire Transfer ) $25.00 (via branch) $20.00 (via FastNet) Withdrawal by foreign currency draft $25.00 Withdrawal by NZ dollar bank cheque $5.00 FastNet Classic internet banking transfers Free Withdrawal to a NZ dollar bank account Free * Monthly fees apply. ** Fees are subject to change. A full list of current fees is available from any ASB branch or at asb.co.nz 3
Interest and tax Interest You may earn or pay interest on some currencies with an ASB Foreign Currency Account (minimum balances will apply). Whether or not you receive or pay interest depends on the prevailing market interest rate. If you open a foreign currency term deposit you may earn a higher rate of return. Interest rates on term deposits are tiered, so the greater your investment, the more interest you may be able to earn. Current interest rates and minimum investment amounts for opening a foreign currency term deposit are available at any ASB branch or by contacting the ASB Global Markets team on 0800 806 280 or +64 9 302 3055. How is interest calculated? Foreign currency account interest, where applicable, is calculated daily and compounded monthly. Term deposit interest is calculated daily and paid on maturity. Interest is calculated on a 360 or 365-day year, depending on the currency of the investment. Paying tax on your interest Since an ASB Foreign Currency Account is domiciled in New Zealand, for tax purposes any interest income is treated in the same way as interest earned on domestic New Zealand dollar accounts. This means withholding taxes may need to be deducted from any interest paid. Non-residents who are eligible and have completed and signed a declaration will have no withholding tax deducted from interest payments. You will, however, be charged approved issuer levy which ASB will pay to the New Zealand Inland Revenue Department. In some instances, a foreign currency account may be considered as a financial arrangement for New Zealand tax purposes and subject to different tax rules. We therefore recommend you get independent taxation advice. 4
How to open an ASB Foreign Currency Account? Personal Foreign Currency Account If you have an ASB bank account you can easily open an ASB Foreign Currency Account online via FastNet Classic or visit any branch. Business Foreign Currency Account If your business holds an existing ASB bank account you can simply talk to your relationship manager or visit any branch. New to ASB If you are new to ASB, please visit your local ASB branch. Minimum opening balances Minimum opening balances for ASB Foreign Currency Accounts Australian dollars AUD 5,000 Hong Kong dollars HKD 50,000 Canadian dollars CAD 5,000 Japanese yen JPY 500,000 Swiss francs CHF 5,000 Singapore dollars SGD 5,000 Euro EUR 5,000 United States dollars USD 5,000 Great British pounds GBP 5,000 Minimum opening balances are subject to change. Want to know more? Just talk to your local ASB branch, relationship manager or get in touch with the ASB Global Markets team at any time between 8am and 5.30pm Monday - Friday on 0800 806 280 or +64 9 302 3055, or by emailing us at privatebankingdealers@asb.co.nz. ASB s Foreign Currency Account and Global Markets Term Deposit Terms and Conditions apply and are available from any ASB branch or at asb.co.nz. 5
Keep in touch Drop in to any ASB branch Call 0800 806 280 or +64 9 302 3055 Visit asb.co.nz Visit us at facebook.com/asbbank Follow us on twitter.com/asbbank ASB Bank Limited 56100 9741 0213 asb.co.nz ASB Bank Limited 56320 1310 0315