The FTS is offered to ensure that students have genuine access to money during their stay. Under the system, students transfer funds into a dedicated savings account before arriving in New Zealand.
Once they reach the country, a fixed monthly amount is automatically transferred to their everyday account for regular use. INZ may require applicants to use this scheme as part of their visa approval process.
Who needs to use the scheme
INZ decides which applicants must use the FTS. In most cases, students are asked to opt for the scheme to demonstrate that they can financially support themselves during their studies. However, using the FTS and opening the accounts does not guarantee that a student visa will be approved.
To qualify, applicants must be at least 13 years old and transfer the required minimum maintenance funds for one year of study. The minimum amount is set at NZ $20,000 per year for tertiary education and NZ $17,000 for compulsory education. These funds cover living costs and do not include tuition fees.
How the process works
Students typically begin the process after receiving an Approval in Principle (AIP) letter from INZ. This letter may include a condition requiring them to use the FTS. Applicants must then complete an online application with the bank, after which the bank contacts them for further details.
Once the account is set up, students transfer their funds into the FTS savings account and inform the bank. The bank then confirms receipt of funds to INZ, which is required before the visa application is finalised. Students must activate their accounts in person after arriving in New Zealand.
Accessing and managing funds
The scheme limits how funds can be used. A fixed monthly amount is transferred from the savings account to an everyday account. For example, a deposit of NZ $20,000 allows a maximum monthly transfer of NZD 1,666, while NZ $17,000 allows up to NZ $1,416 per month.
Access to additional funds is restricted and may only be allowed in specific cases, such as financial hardship, subject to approval. Students can still open other bank accounts in New Zealand alongside their FTS accounts.
Withdrawal and refunds
If a visa application is declined, students can request a refund by providing the rejection letter to the bank. In cases where students stop studying or complete their course, they can withdraw the remaining balance after meeting documentation requirements. The accounts are then closed once funds are repaid.
The FTS remains a key tool used by INZ to monitor financial preparedness of international students, while also ensuring structured access to funds during their stay in New Zealand.