Is this even workable or is it is a bad idea?
I agree with $ingaporean: bad idea. Typically the bank will deduct an immediate 1.5% when you make a cash deposit, if they even accept it. Cash is toxic nowadays and getting more toxic. Avoid.
Moreover, you said you “cannot take any losses.” There is zero deposit insurance in Singapore on any/all foreign currency deposits. If the bank collapses — and that cannot be totally ruled out — you probably lose it all.
How about an Australian government bond? Or a couple? Maybe one bond that matures in 2029 and another that matures in 2033? That’s the very safest place to park Australian dollars. That’s more conservative than I’d play it for a time horizon of 10 to 15 years, but you did say you want safety.
Another way to do this is to pick some number of Singapore dollars that you save monthly for the next 10+ years toward this objective, and you invest those dollars (in the lowest cost way you can find) into a bond fund that invests in investment grade Australian bonds. When the Australian dollar is weak, you’ll tend to get more Australian dollars. When the Australian dollar is strong, you’ll tend to buy fewer. Keep that up for 10+ years and you’ll automatically get more of the cheapest Australian dollars (in Singapore dollar terms) and fewer of the most expensive Australian dollars. And you’ll converge on your desired outcome. Interactive Brokers would be able to do this for you, as one example.
Of course your child may have different ideas (and talents) about his/her higher education when the time comes. [How does Harvard sound?
] So I’m not wild about this idea either, going all-in on Australia.
