Best Interest Rates

[newbepat]

I have seen 6%+ interest rates qouted on TV for fixed term deposit's Is this true? I want some of that Please

and how and what do i do to get same?, I believe they were talking about Australia. Can I open and transfer funds on the internet,

Or is it pie in the sky

Pat

:jap:

[Sophon]

If you are not from Australia and are not currently living in Australia it would be a very risky investment. The 6% interest (and a lot more) could very quickly be eaten up by currency fluctuations. Not something to consider if you are risk adverse (although possibly as small part of a larger diversified investment strategy).

Sophon

[HAWKHILL]

Try LM Investments Australia Thai Baht USD etc can be deposited currently Thai Baht is returning 7% google the name for more details

[Robby nz]

As I said before check out the NZ banks and investment companies.

The advantage there is you as a non NZ resident can get on what is called "approved issuer levy" instead of withholding tax and pay only 2%.

This is what I do, even though I am from NZ I now have official non resident status and only pay 2% on interest on investment.

New Zealand legislation enables the creation of an offshore finance company, which providing it is independent of the depositors, can accept global deposits, earn high interest (for example if invested in New Zealand in an AAA rated bank - Standard and Poors, in the range of 4.5% on call, to 3.75% for one month term deposit) and pay the depositors a lesser interest rate. Instead of the non resident withholding tax rate, only 2% tax is deducted on interest paid to non-residents. This is the “Approved Issuer Levy” scheme where the independent finance company (or any taxpayer) who has complied with their tax obligations, can register as an approved issuer. The financial arrangement must be a security which is registered with the New Zealand Revenue.

Note the interest rate quoated is for 1 month TD you will get much higher for longer terms, up to 6% from banks and 7% from some finance Co's

[topt]

Can you confirm if these deposits are "protected" in any way?

Eg in the UK most UK based banks (even foreign owned if a UK branch) used to belong to a government backed scheme which guaranteed the first £50,000 and I believe this has just been raised to a higher figure.

Also how easy is is for a non national to open one of these accounts - IE what sort of hoops do they make you go through to apply due to money laundering regs?

Thanks

[Robby nz]

Can you confirm if these deposits are "protected" in any way?

Eg in the UK most UK based banks (even foreign owned if a UK branch) used to belong to a government backed scheme which guaranteed the first £50,000 and I believe this has just been raised to a higher figure.

Also how easy is is for a non national to open one of these accounts - IE what sort of hoops do they make you go through to apply due to money laundering regs?

Thanks

The NZ Govt has a guarantee scheme which runs to Dec this year, it was origionaly to finish Dec last year but they extended it, dont know if they will do this again.

Look up the web sites of NZ banks, e mail them and ask.

Among othes I invest with a Co called Marac and at one time they sent me someone elses statement by mistake, someone from the USA, so I know the finance Co's accept overseas investments, dont see why the banks shouldnt.

[ESB7]

Can you confirm if these deposits are "protected" in any way?

Eg in the UK most UK based banks (even foreign owned if a UK branch) used to belong to a government backed scheme which guaranteed the first £50,000 and I believe this has just been raised to a higher figure.

Also how easy is is for a non national to open one of these accounts - IE what sort of hoops do they make you go through to apply due to money laundering regs?

Thanks

In the U.K. you can get over 4% fixed for 5 years, 1 year bonds are currently 2.5-3%..dont forget your ISA allowance........just remember if you are transferring to OZ or NZ...Sterling is at an all time low, 12 months from now the exchange rate could be a lot different,....not forgetting that the BOE are more than likely to raise rates this year, and maybe as early as next month....

[topt]

,....not forgetting that the BOE are more than likely to raise rates this year, and maybe as early as next month....

Which is why I will not invest in a fixed 4 year term product

Also I am actually looking to invest USD

HAWKHILL - "Try LM Investments Australia Thai Baht USD etc can be deposited currently Thai Baht is returning 7% google the name for more details"

I looked up their website and these appear to be investments in funds with no fixed interest and management charges to consider - the only fixed interest rate I could see for personal investors quoted 3.55% which is much less than Australia's bank rate.

[clinique]

In this case the Op is talkig about retireing in Thailand.

He is talking about a relatively large sum, lodged on fixed term. Not just saving type deposits.

International banks in Singapore currently offer AUD rates of between 6-8% link here depending or terms of 12-36 months.

With his amount of investment he would qualify as a Private Banking client.

Singapore also has a deposit guarantee scheme for personal depositors up to a limit.

Singapore is arecognised clean and secure banking centre, and has low tax rates.

Singapore has a very tough Central Bank (Monetary Authority of Singapore) and banks are strictly regulated.

Suggestions that the OP must live in, or go to Australia to open AUD accounts is nonsense.

Suggestions that the investment in AUD is very risky - well so would it be in many European banks.

Exchange risk - yes sure there is that- however the fluctuationof the AUD currency is far less than GBP,Euro, USD and the fact that OP would be earning double what he is earning now is part of his risk/reward decision.

Agreed, he has to manage his own investments but what he is looking for is facts on where and whether he can or cannot qualify for such deposit rates.

The answer is he can qualify and IMO Singapore qualifies as one of the safest jusisdictions to invest due to strict banking regulation.

[GreenSnapper]

In this case the Op is talkig about retireing in Thailand.

He is talking about a relatively large sum, lodged on fixed term. Not just saving type deposits.

International banks in Singapore currently offer AUD rates of between 6-8% link here depending or terms of 12-36 months.

With his amount of investment he would qualify as a Private Banking client.

Singapore also has a deposit guarantee scheme for personal depositors up to a limit.

One correction, clinique: AUD deposits at ICICI bank are NOT guaranteed by the Singapore government. But the risk is very small, it is a major bank from India.

Otherwise, your advise here is correct. But everything has already been told to the OP. He does not listen and asks the same questions over and over again.

[clinique]

In this case the Op is talkig about retireing in Thailand.

He is talking about a relatively large sum, lodged on fixed term. Not just saving type deposits.

International banks in Singapore currently offer AUD rates of between 6-8% link here depending or terms of 12-36 months.

With his amount of investment he would qualify as a Private Banking client.

Singapore also has a deposit guarantee scheme for personal depositors up to a limit.

One correction, clinique: AUD deposits at ICICI bank are NOT guaranteed by the Singapore government. But the risk is very small, it is a major bank from India.

Otherwise, your advise here is correct. But everything has already been told to the OP. He does not listen and asks the same questions over and over again.

Hi greenSnapper,

Out of interest, what makes you say that deposits are not guaranteed?

I am aware it is Indian bank (2nd largest) and in addition it is listed on the New York Stock Exchange. Also ranks 282 on Forbes top 2000 companies in 2010 link here above many other global banks.

Understand OP also , he is talking about his retirement so right to be cautious IMO.

Edit: OK FX deposits no longer gteed from 31.12.2010.

Edited February 25, 2011 by clinique

[PattayaParent]

Also I am actually looking to invest USD

HAWKHILL - "Try LM Investments Australia Thai Baht USD etc can be deposited currently Thai Baht is returning 7% google the name for more details"

I looked up their website and these appear to be investments in funds with no fixed interest and management charges to consider - the only fixed interest rate I could see for personal investors quoted 3.55% which is much less than Australia's bank rate.

The LM Investments current rate sheet for THB shows 6.35% for 12 month, 7.22% for 36 months.

What I don't like s the small print

In order to protect all investments, as per the product disclosure statement, LM may delay withdrawals from the fund by up to 365 days or suspend withdrawals. Investors will also only have limited rights to withdraw if the fund does not satisfy the statutory liquidity test in the Corporations Act (refer to the product disclosure statement for the fund under the heading "Withdrawal from the Fund" for details of this statutory test). Consequently, there could be a risk an investor will not be paid their withdrawal proceeds within a reasonable period after the end of a fixed term investment.

[clinique]

Also I am actually looking to invest USD

HAWKHILL - "Try LM Investments Australia Thai Baht USD etc can be deposited currently Thai Baht is returning 7% google the name for more details"

I looked up their website and these appear to be investments in funds with no fixed interest and management charges to consider - the only fixed interest rate I could see for personal investors quoted 3.55% which is much less than Australia's bank rate.

The LM Investments current rate sheet for THB shows 6.35% for 12 month, 7.22% for 36 months.

What I don't like s the small print

In order to protect all investments, as per the product disclosure statement, LM may delay withdrawals from the fund by up to 365 days or suspend withdrawals. Investors will also only have limited rights to withdraw if the fund does not satisfy the statutory liquidity test in the Corporations Act (refer to the product disclosure statement for the fund under the heading "Withdrawal from the Fund" for details of this statutory test). Consequently, there could be a risk an investor will not be paid their withdrawal proceeds within a reasonable period after the end of a fixed term investment.

yes quite !

This is to ensure liquidity in the Fund itself and make sure there is no uncontrolled "run" on the fund in the event of negative market conditions.

However it means the manager controls all withdrawals and hence the investor is at the total discretion of the fund manager.

Not the kind of liquidity and redemption availability most investors would choose.

[Sophon]

Exchange risk - yes sure there is that- however the fluctuationof the AUD currency is far less than GBP,Euro, USD and the fact that OP would be earning double what he is earning now is part of his risk/reward decision.

Not exactly true. Currency rates over the last two years against the THB:

Currency...high....low....difference

AUD........ 31.50...22.81....38%

GBP........ 57.61...46.27....24%

EUR........ 50.25...38.80....30%

USD........ 36.33...29.49....23%

Granted, the fluctuations for the AUD over that period have generally been upwards, but "what goes up must come down". The AUD is currently at a very high level historically against many currencies.

And high interest rates are usually there for a reason, and the reason is often real or perceived risk of high inflation which normally results in falling exchange rates. I hear that you can get very good interest rates if you are willing to put your money in Zimbabwe dollar . For what it's worth many so-called currency specialists expect a major downwords correction for the AUD (and even more so the NZD) in the not too distant future. Are they right, time will tell?

Yes, the interest rate for AUD is much better than most, and it could be a good investment. But it could also be a very bad one if the exchange rate tanks. Personally I think placing your money in a "third country" currency is not something you should do without serious consideration. If we take a Brit as an example and he keeps his money back in the UK, then he runs the risk of the pound falling enough against the baht for him no longer to be able to afford living in Thailand. But he will still have the option of (however unwilling) going back to the UK. But if he places his funds in AUD to take advantage of the better interest rate and the AUD tanks, then he may not be able to afford living neither in Thailand nor in the UK.

I am not saying not to exchange (some of) your money to AUD, I'm just saying you should be aware of the risks you are taking.

As always, everone is allowed to have their own opinion.

Sophon

[AnnyLing]

In this case the Op is talkig about retireing in Thailand.

He is talking about a relatively large sum, lodged on fixed term. Not just saving type deposits.

International banks in Singapore currently offer AUD rates of between 6-8% link here depending or terms of 12-36 months.

With his amount of investment he would qualify as a Private Banking client.

Singapore also has a deposit guarantee scheme for personal depositors up to a limit.

One correction, clinique: AUD deposits at ICICI bank are NOT guaranteed by the Singapore government. But the risk is very small, it is a major bank from India.

Otherwise, your advise here is correct. But everything has already been told to the OP. He does not listen and asks the same questions over and over again.

Hi greenSnapper,

Out of interest, what makes you say that deposits are not guaranteed?

I am aware it is Indian bank (2nd largest) and in addition it is listed on the New York Stock Exchange. Also ranks 282 on Forbes top 2000 companies in 2010 link here above many other global banks.

Understand OP also , he is talking about his retirement so right to be cautious IMO.

Edit: OK FX deposits no longer gteed from 31.12.2010.

ICICI, Singapore is an independent Singapore banking structure and not listed in NYSE. Singapores Government guarantee for cash deposits expired October 10th, 2010. ICICI, India does not guarantee any obligations of ICICI, Singapore.

[alfieconn]

If you are not from Australia and are not currently living in Australia it would be a very risky investment. The 6% interest (and a lot more) could very quickly be eaten up by currency fluctuations. Not something to consider if you are risk adverse (although possibly as small part of a larger diversified investment strategy).

Sophon

Why do people when commenting on investing in other currencies only ever mention the down side as though there is not an upside, yes the the investment could be eaten up but at the same time the Aussie dollar could strenghen and your 6% couild increase too 10% for example, its a chance you take

[AnnyLing]

If you are not from Australia and are not currently living in Australia it would be a very risky investment. The 6% interest (and a lot more) could very quickly be eaten up by currency fluctuations. Not something to consider if you are risk adverse (although possibly as small part of a larger diversified investment strategy).

Sophon

Why do people when commenting on investing in other currencies only ever mention the down side as though there is not an upside, yes the the investment could be eaten up but at the same time the Aussie dollar could strenghen and your 6% couild increase too 10% for example, its a chance you take

People do that because they are bored and crave to say something or anything. Out of boredom they also sign their postings although it is clearly shown who posted.

[newbepat]

In this case the Op is talkig about retireing in Thailand.

He is talking about a relatively large sum, lodged on fixed term. Not just saving type deposits.

International banks in Singapore currently offer AUD rates of between 6-8% link here depending or terms of 12-36 months.

With his amount of investment he would qualify as a Private Banking client.

Singapore also has a deposit guarantee scheme for personal depositors up to a limit.

Singapore is arecognised clean and secure banking centre, and has low tax rates.

Singapore has a very tough Central Bank (Monetary Authority of Singapore) and banks are strictly regulated.

Suggestions that the OP must live in, or go to Australia to open AUD accounts is nonsense.

Suggestions that the investment in AUD is very risky - well so would it be in many European banks.

Exchange risk - yes sure there is that- however the fluctuationof the AUD currency is far less than GBP,Euro, USD and the fact that OP would be earning double what he is earning now is part of his risk/reward decision.

Agreed, he has to manage his own investments but what he is looking for is facts on where and whether he can or cannot qualify for such deposit rates.

The answer is he can qualify and IMO Singapore qualifies as one of the safest jusisdictions to invest due to strict banking regulation.

ICICI Bank Singapour :Account Opening

1.How can I place a Fixed Deposit and what are the documents I need to submit?

It's quite simple. Please visit our branch, fill the Account Opening Form and furnish the following supporting documents.

a)Proof of Identity: .Singapore Citizens / Permanent Residents - Copy of pink / blue NRIC card.Singapore Residents (Other than Permanent Residents) - Copy of documents issued by the relevant Government Agencies/ Ministries in Singapore (eg: Employment Pass). and Passport.Singapore Non Residents - Copy of Passportb)Proof of Residential Address - E.g. latest copy of utility bills, bank statements etc - issued within last 3 months Please carry the originals of the above mentioned documents with you so that our staff may verify the same.

Are they talking about address in my home country?

Edited February 27, 2011 by newbepat

[Sophon]

If you are not from Australia and are not currently living in Australia it would be a very risky investment. The 6% interest (and a lot more) could very quickly be eaten up by currency fluctuations. Not something to consider if you are risk adverse (although possibly as small part of a larger diversified investment strategy).

Sophon

Why do people when commenting on investing in other currencies only ever mention the down side as though there is not an upside, yes the the investment could be eaten up but at the same time the Aussie dollar could strenghen and your 6% couild increase too 10% for example, its a chance you take

I did address that in post 14. Yes, the exchange rate for AUD could both go up and down, but there is a reason why some countries have higher interest rates than others, and those reasons normally means that (in the long run) the risk of the currency weakening is more likely than it strenghtening. You don't get something for nothing in this world. If the market perceives the strenght of a currency with a high interest rate to be equal or superior to that of a currency with low interest rates, then funds will flow into the former currency which will then strenghten further. This will continue until the market changes it's opinion, at which time money will start flowing out and the currency will weaken again. For a (with all due respect) minor currency like the AUD these movements can have a very large effect on the exchange rate.

It's worth noting that in the short run high interest rates can strenghten a currency, but in the long run the underlying factors for the high interest rates will normally come back to bite you. But if you can get in and out of a currency at the right times it can be a very good investment. But I still maintain that the average investor without deep knowledge about currencies, and who can ill afford to lose a significant part of his capital, should stick to keeping his money in the currency of either the country he is living in or the country he is originally from. He should certainly not put all his eggs in the same basket, just because the interest rate for a particular currency are high.

Of course, these arguments are "all other things equal" arguments, which is seldom true in the real world.

Sophon

[AnnyLing]

ICICI Bank Singapour :Account Opening

Singapore Non Residents - Copy of Passportb)Proof of Residential Address - E.g. latest copy of utility bills, bank statements etc - issued within last 3 months Please carry the originals of the above mentioned documents with you so that our staff may verify the same.

Are they talking about address in my home country?

They are talking about your present Residential Address.

[clinique]

Your normal residential address where all your bills , correspondence goes.

This is so they knowits a real address when you open the account and not a bogus one (they do this with everyone opening new accounts), obviously once you open the account and IF you change addresses then you can update that change with them as a customer.

[cheeryble]

As for ICICI:

Can one open an account remotely? Without going to Singapore?

What are they like for use as one's "central" bank? ie Will they send money transfers on a phone call or phone + email, or does it get involved?

thanks

[GreenSnapper]

As for ICICI:

Can one open an account remotely? Without going to Singapore?

Most probably not.

But where is the problem? Singapore is always a nice break from Thailand. Combine banking with some sightseeing in a developed nation. Cheap flights with Tiger and Air Asia.