Fixed Term With Dbs

[lordofdelusion]

I've grown tired of the stock roller coaster that has served me well over the last couple of years. It looks like down times ahead so I've decided to go fixed term investments. I need a good nights sleep. Odd times as my bond funds have been sinking along with my stocks. Not finding much in fixed income over 5.4% in the US, my homeland, I am planning to go with DBS in Singapore. Bank of America and Bangkok bank both have branches in Singapore. My Bangkok Bank account is linked in the US to my HSBC online account which makes transfers between the 2 easy as has been documented here before. SOOOO..... my hope was to 1) empty mutual funds into bank accounts. 2) Go to Singapore, stop at Bof A and Bangkok banks with bankbook in hand and withdraw funds, hopefully in a bank check. 2) Walk into DBS with said check, and open a fixed term deposit account in New Zealand dollars at 8.3%. This is a 3 month account. I thought I would keep then short to take advantage of, or protect myself from any currency moves.

Questions. What's wrong with this plan? What did I miss? Has anybody dealt with DBS and would offer feedback? How about online management of these accounts with DBS? Possible?

As always, help is greatly appreciated.

Being an ex-pat can be such a b**ch!

[Prakanong]

I've grown tired of the stock roller coaster that has served me well over the last couple of years. It looks like down times ahead so I've decided to go fixed term investments. I need a good nights sleep. Odd times as my bond funds have been sinking along with my stocks. Not finding much in fixed income over 5.4% in the US, my homeland, I am planning to go with DBS in Singapore. Bank of America and Bangkok bank both have branches in Singapore. My Bangkok Bank account is linked in the US to my HSBC online account which makes transfers between the 2 easy as has been documented here before. SOOOO..... my hope was to 1) empty mutual funds into bank accounts. 2) Go to Singapore, stop at Bof A and Bangkok banks with bankbook in hand and withdraw funds, hopefully in a bank check. 2) Walk into DBS with said check, and open a fixed term deposit account in New Zealand dollars at 8.3%. This is a 3 month account. I thought I would keep then short to take advantage of, or protect myself from any currency moves.

Questions. What's wrong with this plan? What did I miss? Has anybody dealt with DBS and would offer feedback? How about online management of these accounts with DBS? Possible?

As always, help is greatly appreciated.

Being an ex-pat can be such a b**ch!

DBS is my bank here in Singapore and I have no complaints up to now.

Do not know about the specific foreign currency accounts but my savings, current, investment and CC's are all managed on-line

[lordofdelusion]

I've grown tired of the stock roller coaster that has served me well over the last couple of years. It looks like down times ahead so I've decided to go fixed term investments. I need a good nights sleep. Odd times as my bond funds have been sinking along with my stocks. Not finding much in fixed income over 5.4% in the US, my homeland, I am planning to go with DBS in Singapore. Bank of America and Bangkok bank both have branches in Singapore. My Bangkok Bank account is linked in the US to my HSBC online account which makes transfers between the 2 easy as has been documented here before. SOOOO..... my hope was to 1) empty mutual funds into bank accounts. 2) Go to Singapore, stop at Bof A and Bangkok banks with bankbook in hand and withdraw funds, hopefully in a bank check. 2) Walk into DBS with said check, and open a fixed term deposit account in New Zealand dollars at 8.3%. This is a 3 month account. I thought I would keep then short to take advantage of, or protect myself from any currency moves.

Questions. What's wrong with this plan? What did I miss? Has anybody dealt with DBS and would offer feedback? How about online management of these accounts with DBS? Possible?

As always, help is greatly appreciated.

Being an ex-pat can be such a b**ch!

DBS is my bank here in Singapore and I have no complaints up to now.

Do not know about the specific foreign currency accounts but my savings, current, investment and CC's are all managed on-line

Perfect!! Thanks for that

[monty]

A quick check at FXhistory shows that in the last 3 months the NZD against the US$ traded between 0,68240 and 0.79370, which is a variation of some 16%, with the NZ$ currently being at the high end of that range (= you'll pay them expensive)!

So unless your living expenses are in NZ$, the currency exchange risk is higher then the interest paid....

[Prakanong]

A quick check at FXhistory shows that in the last 3 months the NZD against the US$ traded between 0,68240 and 0.79370, which is a variation of some 16%, with the NZ$ currently being at the high end of that range (= you'll pay them expensive)!

So unless your living expenses are in NZ$, the currency exchange risk is higher then the interest paid....

It looks like he is an expat in Thailand - how would that work out then

Against the THB?

[lordofdelusion]

A quick check at FXhistory shows that in the last 3 months the NZD against the US$ traded between 0,68240 and 0.79370, which is a variation of some 16%, with the NZ$ currently being at the high end of that range (= you'll pay them expensive)!

So unless your living expenses are in NZ$, the currency exchange risk is higher then the interest paid....

But, past performance is no indicator of future results So I could make money on the exchange possibly. How about a different currency? Something maybe more stable.

[BEENTHEREDONETHAT]

I've had money in a New Zealand bank for about 4 years now and I am very pleased with the results. If you have the account in NZ you not only get the high interest rate (right now 8.9%) but NZ only charges you a 2% levy on the earning compared to a 10% tax in Australia. You do have the currency flucuation to worry about and the NZ dollar is presently higher than normal.

Compared to the US$ the Kiwi $ I believe has fared better against the Baht.

The down side is a few years ago the exchange rate was under .50 to the US dollar it is now .7673. So the gain has been nice if you got in then. The future of the exchange rate? I wish I knew I would be rich.

[lordofdelusion]

Yeah, the exchange rate thing is the big unknown. The dollar has recently rallied vs. the pound and Euro but still sux against the Baht. If the dollar gained against the Baht just 1 % while I was earning that 5.4% back in the US, that would be a decent return in choppy times. If the dollar strengthens against the Kiwi $ while I'm in but drops against the Baht, then,..?? ...this gets really confusing!!! I could just open a bar in Thailand for income. That seems to be a booming industry . Anyone tried that yet???

[jetzie]

I'm working in DBS. and happen to be involved in FDs for foriegn currencies, i would say that would be a wise choice as DBS is having a good turnover for the past few years and custsvc is prompt.

[timekeeper]

i live in Thailand and i am with DBS in Singapore. i have a treasures account and i am currently on a month to month FT in NZ $ making 8.05% this month service is great, 24 hours a day availablity, i have my own account manager who calls regularly with recomendations without being pushy. i highly recomend them as a bank. if you are not a Singaporean or do not have a work permit you will need a written introduction from a DBS account holder thats been with them for a minimum 6 months or you will not be allowed to open an account regardless of funds you may have to deposit.

[Prakanong]

i live in Thailand and i am with DBS in Singapore. i have a treasures account and i am currently on a month to month FT in NZ $ making 8.05% this month service is great, 24 hours a day availablity, i have my own account manager who calls regularly with recomendations without being pushy. i highly recomend them as a bank. if you are not a Singaporean or do not have a work permit you will need a written introduction from a DBS account holder thats been with them for a minimum 6 months or you will not be allowed to open an account regardless of funds you may have to deposit.

Your post just reminded me about when I opened mine. My EP (Employment Pass ie WP) had not come through yet so my re-location consultant took me there and sorted out my account - that must have been the DBS Account Holder introduction.