foreign currency fixed deposit

[neanea]

which bank to go for foreign currency fixed deposit ?

 

[neanea]

Anyone????

 

[lousylah]

google your title and you have at least 4-5 banks on the 1st page:
https://www.google.com.sg/search?q=foreign+currency+fixed+deposit

take your pick.

 

[Balian]

if you are really looking for higher interest rates...

deposit foreign currency in neighboring countries...

 

[archon75]

Just a reminder -
NO RISK NO GAIN -> Higher Rate -> ???????

 

[MsTickle]

which bank to go for foreign currency fixed deposit ?

Do u have a Brazillian or Australian savings account? Simple one will do. If u have, the interest rates from these two countries are really much better, and (i feel) that they at least provide more flexibility than fixed dees? Maybe other folks here have varied opinions?

 

[lousylah]

Do u have a Brazillian or Australian savings account? Simple one will do. If u have, the interest rates from these two countries are really much better, and (i feel) that they at least provide more flexibility than fixed dees? Maybe other folks here have varied opinions?

depositor will be exposed to fx risk. aud has dropped about 8% against sgd in the past 3 months which would have wiped out any interest earned.

http://sg.finance.yahoo.com/q/bc?s=AUDSGD=X&t=3m

 

[tuxguy]

if you are really looking for higher interest rates...

deposit foreign currency in neighboring countries...

hope you can share more knowledge on this...or if anyone have some insight can share?

was thinking if i go to a bank in malaysia and deposit SGD, it would consider as foreign currency and hence earn more interest?

 

[lusunshine]

hope you can share more knowledge on this...or if anyone have some insight can share?

was thinking if i go to a bank in malaysia and deposit SGD, it would consider as foreign currency and hence earn more interest?

Wrong understanding. If you want to have better interest rate on a specific currency, go open account and deposit it at the country of origin.

 

[chopra]

if you are really looking for higher interest rates...

deposit foreign currency in neighboring countries...

agree.
like if you frequent australia or china, use ur passport and open an account there.

never open in Singapore Foreign currency accounts because of the attractive interest rates -- the exchange rates will ERODE your earnings.

 

[Shiny Things]

hope you can share more knowledge on this...or if anyone have some insight can share?

was thinking if i go to a bank in malaysia and deposit SGD, it would consider as foreign currency and hence earn more interest?

No, he means depositing a foreign country's currency (say AUD) in that same country's banks (say ANZ).

Depositing a currency in a different country's banks usually means extortionately low interest rates (compare the interest rates for an AUD account in Australia and Singapore and you'll see what I mean).

 

[lusunshine]

If ur foreign currency USD? If yes, find some dual currency product. Which should give higher rate than fd

Try not to touch any dual currency product if you are not really a risk taker.

 

[quantcall]

Try not to touch any dual currency product if you are not really a risk taker.

Delete for wrong info

 

[lusunshine]

Dual currency deposit is principal protected, you are only receiving interest in depreciating currency

Principal protected? Are you kidding me seriously? How well your principal is protected when you got strike and converted into the alternative currency from your initial currency and the alternative currency just keeps dropping then makes you stuck with it forever?

 

[Shiny Things]

Dual currency deposit is principal protected, you are only receiving interest in depreciating currency

Wrong.

DCDs are not principal protected. You receive the principal (and usually the interest) back in the depreciating currency.

You could structure up a DCD where only the interest is at risk, but the interest rate would be basically the same as a regular fixed deposit and nobody would buy it.

(Pro tip: you can tell a bank is a structured-product amateur when they only offer DCDs where the principal is at risk, not principal+interest. I wrote a P+I DCD pricer for one of the offshore banks all the way back in 2004 when I was just a junior quant, but there are still banks around who can't figure out how to incorporate the interest in the at-risk amount.)

 

[quantcall]

Wrong.

DCDs are not principal protected. You receive the principal (and usually the interest) back in the depreciating currency.

You could structure up a DCD where only the interest is at risk, but the interest rate would be basically the same as a regular fixed deposit and nobody would buy it.

(Pro tip: you can tell a bank is a structured-product amateur when they only offer DCDs where the principal is at risk, not principal+interest. I wrote a P+I DCD pricer for one of the offshore banks all the way back in 2004 when I was just a junior quant, but there are still banks around who can't figure out how to incorporate the interest in the at-risk amount.)

I think u r right. The deal I did b4 involves buying into corp credit, it's kinda fx/credit hybrid. By selling usdsgd put on the interest itself is not viable. Iv removed my prev post

 

[ben_minton]

I started with Maybank on A$ fd few years ago, then move the A$ to ICICI, then this month to CIMB. All done for better A$ fd rate. In fact, RHB has the best A$ fd rate at
3.6%, too bad i had done mine with cimb.

Just an advice, to move A$ to next bank, use tt instead of bank cheque which will incur 0.125% or min $20~50 charge impose by most banks. TT is fast & simple. Just talk to next_bank about yr intention, they will open an acc for u to allow yr $$ to tt over

 

[mrohaha]

I started with Maybank on A$ fd few years ago, then move the A$ to ICICI, then this month to CIMB. All done for better A$ fd rate. In fact, RHB has the best A$ fd rate at
3.6%, too bad i had done mine with cimb.

Just an advice, to move A$ to next bank, use tt instead of bank cheque which will incur 0.125% or min $20~50 charge impose by most banks. TT is fast & simple. Just talk to next_bank about yr intention, they will open an acc for u to allow yr $$ to tt over

I have switched banks several times for foreign currency fixed deposits. I managed to get the charges for getting a demand draft waived nearly everytime, with the exception of OCBC. I strongly believe that these are unnecessary charges that should never be borne by customers.

 

[neanea]

You leave your money in A$ throughout?

I started with Maybank on A$ fd few years ago, then move the A$ to ICICI, then this month to CIMB. All done for better A$ fd rate. In fact, RHB has the best A$ fd rate at
3.6%, too bad i had done mine with cimb.

Just an advice, to move A$ to next bank, use tt instead of bank cheque which will incur 0.125% or min $20~50 charge impose by most banks. TT is fast & simple. Just talk to next_bank about yr intention, they will open an acc for u to allow yr $$ to tt over

 

[audnzd]

i think all should look for nzd instead
now