ICBC 12 months FD 3.6% - Thoughts?

[minamikaze]

Chanced upon a brochure from ICBC, offering 12 Months fixed deposit (RMB) at 3.6% for 10K - 50K RMB, and 3.7% for above 50K.
That's way higher than all other fixed D in SGD, but are there any caveats that I should be aware of, apart from the exchange rate risk?

Thanks.

 

[weiming41]

Forex risk I guess?

Chanced upon a brochure from ICBC, offering 12 Months fixed deposit (RMB) at 3.6% for 10K - 50K RMB, and 3.7% for above 50K.
That's way higher than all other fixed D in SGD, but are there any caveats that I should be aware of, apart from the exchange rate risk?

Thanks.

 

[3dfxplayer]

You know you don't make the full 3.6% even if exchange rates remain exactly the same 12 months from now right? The fx bid/ask spreads for banks are usually over 100 basis points (1%), you go with this you might be down 1% right off the bat.

 

[BBCWatcher]

I agree with 3dfxplayer. You have to look at the total roundtrip cost. Normally the bank requires you to exchange into the foreign currency, and the bank gets a percentage of that conversion.

ICBC is possibly a special case because they do offer RMB accounts and also debit/credit cards that can be used to spend down that currency. If you visit or at least shop in China, and if you really can spend these RMB in China without conversion (at the end of the fixed deposit period), that might work.

Another potential risk factor that deserves some special attention is that China has a history (and present) of capital control rules.

 

[T-Mobile]

Good for those who has RMB banked into icbc . Last time I bank in my RMb with icbc . No charges .
Put them into this FD soon

 

[cscs3]

Chanced upon a brochure from ICBC, offering 12 Months fixed deposit (RMB) at 3.6% for 10K - 50K RMB, and 3.7% for above 50K.
That's way higher than all other fixed D in SGD, but are there any caveats that I should be aware of, apart from the exchange rate risk?

Thanks.

I think there is a condition with it. You are request to sign up some kind of insurance plan with them ?

 

[BBCWatcher]

Good for those who has RMB banked into icbc .

Sure, if you already have RMB at ICBC, and if you want to keep RMB at ICBC, obviously it makes some sense to try to make those RMB work harder if possible and reasonable.

But most people don't have RMB at ICBC already.

When you're ready to spend RMB (as RMB) in mainland China, and if you have a RMB deposit account with funds (after your fixed deposit matures for example), then you can spend at merchants in China using ICBC's UnionPay Dual Currency Debit Card, Koipy Dual Currency Credit Card, or UnionPay Dual Currency Credit Card.

 

[fun4life]

Chanced upon a brochure from ICBC, offering 12 Months fixed deposit (RMB) at 3.6% for 10K - 50K RMB, and 3.7% for above 50K.
That's way higher than all other fixed D in SGD, but are there any caveats that I should be aware of, apart from the exchange rate risk?

Thanks.

If you can have a Alipay (支付宝) account, all your RMB parking there can earn you 4+% interest and it is paid daily. There is no minimum amount, no any fee or charges and you are free to move your money around anytime. It is like Market Fund and there is risk by theory, but actually very low given the scale of Alipay which has its own bank (called 网商银行).

 

[Mr.Canberra]

If you can have a Alipay (支付宝) account, all your RMB parking there can earn you 4+% interest and it is paid daily. There is no minimum amount, no any fee or charges and you are free to move your money around anytime. It is like Market Fund and there is risk by theory, but actually very low given the scale of Alipay which has its own bank (called 网商银行).

Are you sure friend?

Foreigners are not allowed to activate the Wealth Management service in Alipay and WeChat. Correct me if I am wrong.

 

[fun4life]

Are you sure friend?

Foreigners are not allowed to activate the Wealth Management service in Alipay and WeChat. Correct me if I am wrong.

Interest part, 100% sure.

But I opened my Alipay account quite a few years ago and there was only some loose control then. Maybe now different.

 

[awful999]

Are you sure friend?

Foreigners are not allowed to activate the Wealth Management service in Alipay and WeChat. Correct me if I am wrong.

wow if can, we should consider to transfer some RMB fund to alipay or Wechat

 

[dewjef]

Chanced upon a brochure from ICBC, offering 12 Months fixed deposit (RMB) at 3.6% for 10K - 50K RMB, and 3.7% for above 50K.
That's way higher than all other fixed D in SGD, but are there any caveats that I should be aware of, apart from the exchange rate risk?

Thanks.

For u to consider.

I opened a FD with BOC in Jun 2017,similar interest rate.

I dont have RMB,but I can use S$ exchange with BOC (bank ex-rate) or exchange at money changer with receipt & show to bank.

 

[dewjef]

Interest part, 100% sure.

But I opened my Alipay account quite a few years ago and there was only some loose control then. Maybe now different.

May i know how to withdraw? Can transfer to local bank?

 

[Mr.Canberra]

Interest part, 100% sure.

But I opened my Alipay account quite a few years ago and there was only some loose control then. Maybe now different.

This part I have to try again as I seldom use Alipay.

Lastly the bank account you linked to Alipay is a bank account opened in China right? Thanks.

Talking about loose control. Do you agree the most dangerous place to park money is actually the safest?

wow if can, we should consider to transfer some RMB fund to alipay or Wechat

Alipay I am not sure. WeChat confirm cannot for foreigners.

 

[Sinkie]

I have quite substantial rmb cash now

Can I just dump them in this fd? Or I must convert to sgd and then give it to them to convert to rmb?

 

[student_sdu]

Boc got better offer, rmb fd 50k above 4.1%. check out at boc branch.

 

[Mr.Canberra]

I have quite substantial rmb cash now

Can I just dump them in this fd? Or I must convert to sgd and then give it to them to convert to rmb?

Your RMB cash physical location is onshore (China) or offshore (Singapore)?

If I am not wrong if you remit/TT money legally from China (RMB50,000 annual limit applies) the double conversion in Singapore will be very rugi hahaha.

Tip: Ah Neh is your best friend.

Boc got better offer, rmb fd 50k above 4.1%. check out at boc branch.

Yes correct but above RMB50,000.

 

[Sinkie]

Your RMB cash physical location is onshore (China) or offshore (Singapore)?

If I am not wrong if you remit/TT money legally from China (RMB50,000 annual limit applies) the double conversion in Singapore will be very rugi hahaha.

Tip: Ah Neh is your best friend.

Yes correct but above RMB50,000.

Half of them in WeChat wallet, some rmb in my cupboard drawer in Singapore and half of them are in a china bank

still waiting for 4.60 to remit back all of them

 

[student_sdu]

Both icbc and boc accepts (or withdrawal) rmb cash with NO charges, I guess it shall be same this time.

Can call them and confirm this.

I have quite substantial rmb cash now

Can I just dump them in this fd? Or I must convert to sgd and then give it to them to convert to rmb?

 

[awful999]

Half of them in WeChat wallet, some rmb in my cupboard drawer in Singapore and half of them are in a china bank

still waiting for 4.60 to remit back all of them

wow boss u keep so much RMB at home ?