Many New Zealanders are upping sticks to spend the rest of their days enjoying the sunnier climates that the Australian East Coast has to offer. We explain exchange rates and the cheapest options for moving your money overseas and transfering it into foreign currencies such as the Australian Dollar.

Bank accounts

If you're going to live overseas it makes sense to open a current account with a bank in that country. And if you are buying a property there, it will be crucial. A native bank account will provide you with easy access to your cash and won't charge you for converting it into the right currency. The majority of Main Street banks in the New Zealand have networks overseas- most of the New Zealand banks are owned by Australia – so it's worth going into your own Main Street banking branch and asking for more information.

An alternative option is to open an account with one of the growing number of online-only banks. This way, you can access your money or check your statements via the internet, from anywhere in the world.

Moving savings

If your aim is to retire overseas, it is likely that you will have some savings that you intend to live off. Even if you don't but have sold your house in NZ to fund the purchase of a new one overseas, you may well have some money left over.

It is possible to keep your money sitting in an investment or savings account in the NZ but – as soon as you are no longer a NZ resident – you'll probably be restricted to how much you can contribute particularly in countries further afield than Australia. You may also be liable to pay tax in the country you now live in on the income from any investments.

If you want to transfer the money to the country of your chosen residence, you can simply ask the bank you have chosen to do it on your behalf. But be prepared for some hefty transfer fees.

Alternatively, you can use a foreign exchange dealer that will inevitably charge less, as well as providing better rates on your money. If your savings are very substantial, taking this route can reduce costs significantly.

Don't forget: Typically, a dealer offer deals within 1% off the interbank rate, whereas your bank will be 25 to 3% worse than that.

The flipside is, the exchange dealer may well be a company with which you are unfamiliar, so you might have to do some extra homework. Remember that these dealers do not have to be regulated by the NZ Government. A starting point is to see how long the firm has been in business.

And bear in mind that rates change constantly – so to find out who gives the best rate for the country you need, get quotes from several dealers.

Buying property overseas, transferring bank accounts, savings and investments, organising your pension and understanding your tax position, is a complex procedure. So getting independent financial advice is crucial. And beware of 'poolside wisdom', which is often offered freely in many foreign communities.