Overseas fixed deposit - case closed

[ahnyaahnya]

Not impt, want to withdraw now, it is really 0.25

Why the bank bully your parents? Give them less than board rate? Are you sure you read properly?

 

[twinbaby]

Have you even bothered to call them up ?

My dad was the one who cause the money to be locked up abroad, I am not concern about the interest. It is renewed every year and it starts from 6.5%, then slowly decrease all the way to 0.25%. I already called them but the operator seems to give a kind of standard replies cater to their local. But not to the problem we are trying to solve. For the interest yes yes yes. I am a literate person. I just want to withdraw out asap without flying overseas. Interest not impt anymore.

 

[ahnyaahnya]

My dad was the one who cause the money to be locked up abroad, I am not concern about the interest. It is renewed every year and it starts from 6.5%, then slowly decrease all the way to 0.25%. I already called them but the operator seems to give a kind of standard replies cater to their local. But not to the problem we are trying to solve. For the interest yes yes yes. I am a literate person. I just want to withdraw out asap without flying overseas. Interest not impt anymore.

Open savings account. Transfer to savings account. I think need to give notice, not immediate. If they say cannot early withdrawal , then transfer on maturity .
After that remit from savings account to Singapore account.
They should have Internet banking and phone banking .

But your parents don't have any way of authenticating their identity... then difficult.


Maybe try calling Singapore office to see whether they can help with either the withdrawal , or authentication number

 

[twinbaby]

Open savings account. Transfer to savings account. I think need to give notice, not immediate. If they say cannot early withdrawal , then transfer on maturity .
After that remit from savings account to Singapore account.
They should have Internet banking and phone banking .

But your parents don't have any way of authenticating their identity... then difficult.


Maybe try calling Singapore office to see whether they can help with either the withdrawal , or authentication number

Called SG office, they won't help with it.

 

[a4973]

Called SG office, they won't help with it.

If there is no other way then got to fly there to settle or continue to let it roll until a solution is found.

 

[ahnyaahnya]

Called SG office, they won't help with it.

Not even with getting a new authentication number ?
Or a change of address ?
Maybe ask them whether they can give your parents a document saying that they have checked and verified their identities. Then submit to Aus to request for a new authentication number so that can transact after that .

If nothing can be done, then they have to travel there.
Better to get it done soon...how old are your parents?

 

[ahnyaahnya]

I'm assuming this fixed deposit has auto-renewed. When is the next maturity date?

Think first about what these funds would be used for, and where, and when. ("What's the rush?" basically.) For example, if these Australian dollars are earning decent or better interest until the maturity date then it probably makes sense to provide instructions to the bank to stop the auto-renewal and to transfer the funds when the fixed deposit matures to another account via Australian domestic fund transfer (BSB number; see below). Otherwise a premature withdrawal penalty would apply, presumably, and that's no fun.

It depends on whether the account is "Either to Sign" or "All to Sign." Both types are offered in Australia (from what I've read). It's obviously easier if it's an "Either to Sign" account.

There are a couple ways I know of to receive the Australia dollars directly (as a domestic transfer), convert them to Singapore dollars (I assume), then remit them to a bank account in Singapore (I also assume) — all without visiting Australia unless this particular fixed deposit holding institution requires it. Please note that this'll need to be "first party" all the way through. The person who holds either of the accounts I'm about to describe, and the bank account in Singapore, must be the same person as one of the account holders of this Australian fixed deposit.

1. If this person has an Interactive Brokers LLC (U.S.) brokerage account, or can open one, then Interactive Brokers can provide the domestic Australian fund transfer details (including BSB number) to receive the Australian dollars. The cost of currency conversion is super low (US$2 flat fee, global spot rate), and one free withdrawal per calendar month is allowed. Set the account's base currency to Singapore dollars (SGD), convert the Australian dollars to Singapore dollars, wait a few business days for the residual Australian dollars to be auto-converted to SGD and for the funds to settle, then make the withdrawal.

2. If this person has a Schwab brokerage account (any country), or can open one, then Schwab provides Australian fund transfer details (including BSB number) to receive Australian dollars into this person's Schwab account. Schwab will then instantly auto-convert the Australian dollars to U.S. dollars, and then they can be invested or otherwise transferred onward. The exchange rate is fairly reasonable, and there's no additional fee at least to the point of receiving the funds at Schwab.

3. If this person has a Wise Multi Currency Account (formerly called a Borderless Account), or can open one, then Wise provides Australian fund transfer details (including BSB number) to receive Australian dollars into this person's Wise account. Wise can convert the Australian dollars to Singapore dollars, although the conversion rate likely won't be as good as Schwab's and definitely won't be as good as IB's. The Singapore dollars can then be transferred to this person's bank account in Singapore.

Wah . You very expert

 

[ahnyaahnya]

why take out??
Aust bank FD is so much higher and i think ccy is really cheap now, on the relative value basis, it might go up once the war is over.
SGD FD is 3.5%, AUS is around 5% (with ccy appreciation)
if i am you, in fact i am thinking of going to Aus set up bank acc sia

For some strange unexplained reason , they are getting less than 1%. (0.25%)
My guess is that it was renewed some time ago when interest was super low...lower than ours? Dis ours go that low?
So it's probably maturing soon ? Unless they put for long term duration

 

[twinbaby]

I have set up a WISE account,
When the deposit mature, the money should be transferred to my WISE account.
WISE charged 0.46 % for receiving AUD,

 

[ahnyaahnya]

I have set up a WISE account,
When the deposit mature, the money should be transferred to my WISE account.
WISE charged 0.46 % for receiving AUD,

Wah. How you managed to find this avenue?

 

[twinbaby]

Wah. How you managed to find this avenue?

Try the UI in Westpac bank account many times, took advise to sign up with WISE base on this thread. Called them and found out it is an either to sign account.

 

[ahnyaahnya]

Try the UI in Westpac bank account many times, took advise to sign up with WISE base on this thread. Called them and found out it is an either to sign account.

WISE was able to tell you that it is an either to sign account?

 

[twinbaby]

WISE was able to tell you that it is an either to sign account?

Called Australia bank.

 

[ahnyaahnya]

Called Australia bank.

So your problem solved. Just need to wait for maturity

Oh but the Australian bank revealed info about the account although you don't have any number to authenticate your identity?

 

[twinbaby]

they might as well put AUD FD locally. may not be as good as overseas, but good alternative

Ok, finally issue resolved. Withdrawn all money with Australia with a small amount from wise, with them drawing a small commission.

 

[sohguanh]

Ok, finally issue resolved. Withdrawn all money with Australia with a small amount from wise, with them drawing a small commission.

Your case indeed unique. Foreign currency FD I kena before. So FD mature you convert back to SGD and then wise comm all deduct from the FD rates total overall still earn? Me is MYR FD I lose monies.

 

[twinbaby]

Your case indeed unique. Foreign currency FD I kena before. So FD mature you convert back to SGD and then wise comm all deduct from the FD rates total overall still earn? Me is MYR FD I lose monies.

Earn, because we put there for 10 years

 

[BBCWatcher]

Earn, because we put there for 10 years

In nominal terms I would hope so!

It'd be interesting to figure out the net annualized nominal and real returns in Singapore dollar terms. Were these 10 years "well spent" relative to the next best alternative(s)? To start to answer that interesting question (that you're free to ignore!) let's look at the AUD-SGD exchange rates (courtesy OandA.com):

July 20, 2023: 0.89798
July 20, 2013: 1.16279

As expected the foreign exchange rate was a major headwind over this 10 year period. The Australian dollar weakened from about 1.16279 Singapore dollars per Australian dollar to about 0.89798 Singapore dollars per Australian dollar. So the only way to come out ahead, after costs, is a substantially higher AUD interest rate along the way. The 0.25% interest rate period didn't help.

By sheer coincidence there was a 10 year Singapore Government Security issued on July 1, 2013. The issue code was NX13100H. Its cut-off yield was 2.85%. You paid $9,913.50 for a $10,000 face value bond and got coupons of 2.75%. So that works out as follows:

Initial payment: $9,913.50
Twice yearly coupon payments (20) of $137.50
Paid at maturity: $10,000.00
Total nominal returns = $137.50 * 20 + discount = $2,836.50 (~28.6%)

The coupons were paid along the way and could've been reinvested (for additional yield). But you can certainly conclude that if you didn't get back at least 29% more Singapore dollars than you put in then a simple 10 year SGS would've generated better returns than the offshore AUD fixed deposit did.

 

[twinbaby]

In nominal terms I would hope so!

It'd be interesting to figure out the net annualized nominal and real returns in Singapore dollar terms. Were these 10 years "well spent" relative to the next best alternative(s)? To start to answer that interesting question (that you're free to ignore!) let's look at the AUD-SGD exchange rates (courtesy OandA.com):

July 20, 2023: 0.89798
July 20, 2013: 1.16279

As expected the foreign exchange rate was a major headwind over this 10 year period. The Australian dollar weakened from about 1.16279 Singapore dollars per Australian dollar to about 0.89798 Singapore dollars per Australian dollar. So the only way to come out ahead, after costs, is a substantially higher AUD interest rate along the way. The 0.25% interest rate period didn't help.

By sheer coincidence there was a 10 year Singapore Government Security issued on July 1, 2013. The issue code was NX13100H. Its cut-off yield was 2.85%. You paid $9,913.50 for a $10,000 face value bond and got coupons of 2.75%. So that works out as follows:

Initial payment: $9,913.50
Twice yearly coupon payments (20) of $137.50
Paid at maturity: $10,000.00
Total nominal returns = $137.50 * 20 + discount = $2,836.50 (~28.6%)

The coupons were paid along the way and could've been reinvested (for additional yield). But you can certainly conclude that if you didn't get back at least 29% more Singapore dollars than you put in then a simple 10 year SGS would've generated better returns than the offshore AUD fixed deposit did.

To clarify, it started with 6% interest and slowly decelerated to 0.25%.

 

[sohguanh]

To clarify, it started with 6% interest and slowly decelerated to 0.25%.

You can keep maths simple. 10 years ago put how much SGD. 10 years later after dingdong here and there like convert to SGD wise comm etc you get back how much SGD.

Foreign currency FD flaw I think is the currency rate between SGD and the other currency. For my case is SGD MYR and MYR keep losing steam all the way. So whatever high MYR FD rates given need deduct away the loss incurred when you convert back to SGD upon FD mature.