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[OriginalPoster]

I've noticed a number of people in this forum saying that they are parking their money (or at least a portion of it) in Singapore or else recommending that others do so. Just wondering, how do those of you who are doing that get a return on the money that you park there? At least since 2008 Singapore banks have been paying essentially zero interest unless you keep the money in an account denominated in a currency other than SGD, and Americans are generally ineligible to buy securities in Singapore. So how to you get a return out of your money? Just park it in a bank account and hope that exchange rates drift in your favor over time? Put it in a foreign currency fixed deposit account? Or are there other investment vehicles there that a nonresident can take advantage of?

Edited August 10, 2011 by OriginalPoster

[cloudhopper]

UOB has an account denominated in grams of gold, which must be purchased and redeemed in SGD. As well as a variety of interest bearing accounts in major currencies.

[Soutpeel]

Define a reasonable return ?......for the most part offshore bank accounts etc with major internationals in Singapore are just about impossible to get anyway for US citizens thanks to your IRS

But as Cloudhopper has indicated there are many options for Non-US citizens, although not too sure about the "paper" gold account though..

[Soutpeel]

Define a reasonable return ?......for the most part offshore bank accounts etc with major internationals in Singapore are just about impossible to get anyway for US citizens thanks to your IRS

But as Cloudhopper has indicated there are many options for Non-US citizens, although not too sure about the "paper" gold account though..

[OriginalPoster]

Define a reasonable return ?......for the most part offshore bank accounts etc with major internationals in Singapore are just about impossible to get anyway for US citizens thanks to your IRS

But as Cloudhopper has indicated there are many options for Non-US citizens, although not too sure about the "paper" gold account though..

I have bank accounts there that's not an issue.

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

[Naam]

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

perhaps you should make up your mind? you can't eat a cake and keep it.

[12DrinkMore]

Singapore has tended to allow currency appreciation to control inflation rather than interest rates. At the moment I am also looking for a higher return, but as long as they continue to move upwards slowly I am reasonably happy with SGD in readily available cash.

There is far too much turmoil going on in the financial markets, steady as she goes with no massive ups and downs is my current plan.

[chiang mai]

I get zero interest on my SGD but I'm quite happy with the increase in its value over the past year - for me it's a good hedge against THB and against GBP hence I don't need an extra 2 or 3% interest income on top.

[OriginalPoster]

I get zero interest on my SGD but I'm quite happy with the increase in its value over the past year - for me it's a good hedge against THB and against GBP hence I don't need an extra 2 or 3% interest income on top.

Yes, it's been good in that regard this year.

[OriginalPoster]

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

perhaps you should make up your mind? you can't eat a cake and keep it.

I figured that might be the answer but was hoping for some more creative ideas. The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

Edited August 10, 2011 by OriginalPoster

[Soutpeel]

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

perhaps you should make up your mind? you can't eat a cake and keep it.

I figured that might be the answer but was hoping for some more creative ideas. The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

Aussie dollars seems to the only currency account you can get "decent" interest on these days, so you might want to look at that

[g00dgirl]

AUD term deposits, but the rates are not very good right now, they used to be around 6-7%

https://www.ocbc.com/personal-banking/tools%20and%20info/Toi_Rates_FoxFC_Listing.shtm

[Naam]

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

perhaps you should make up your mind? you can't eat a cake and keep it.

I figured that might be the answer but was hoping for some more creative ideas. The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

you might take a look at a few SG corporates which pay 3-3.5% on their bonds. but in my [not so] humble opinion that doesn't beat the freedom of action you enjoy with cash SGD. if you move into high yield currencies (e.g. AUD, ZAR, NZD) it means hard work to monitor them daily and act when necessary.

[Naam]

Don't have a set definition of reasonable return, but the <<1% that DBS and OCBC pay on SGD savings accounts denominated isn't. That's what I'm looking for alternatives to, and I have a strong preference for keeping the money in SGD.

perhaps you should make up your mind? you can't eat a cake and keep it.

I figured that might be the answer but was hoping for some more creative ideas. The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

Aussie dollars seems to the only currency account you can get "decent" interest on these days, so you might want to look at that

if he has the guts to accept the fluctuations:

[Darrel]

The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

If I had money on deposit in a country that I was very likely to go and live in at some point then there is no doubt that I would use some of it to buy property there now.

Unless of course it was a silly country.

[Naam]

basically i abhor shares but i had a look at some Singapore equities and their dividend yields which look quite interesting. the research is one day old. perhaps that's an alternative?

if you give me your e-mail address by PM i will send you the complete comprehensive research.

Edited August 11, 2011 by Naam

[OriginalPoster]

basically i abhor shares but i had a look at some Singapore equities and their dividend yields which look quite interesting. the research is one day old. perhaps that's an alternative?

if you give me your e-mail address by PM i will send you the complete comprehensive research.

Thanks Naam, that's very useful information.

I'm a bit averse to shares too but that's an option worth consideration. But as with AUD fixed deposits, I think that I'll wait for the dust to settle a little bit on Wall Street before making any move on that front.

Edited August 11, 2011 by OriginalPoster

[OriginalPoster]

The situation is that I'm a Singapore PR and have (what for me) is a significant amount of cash left behind in a bank in Singapore after having worked there for a number of years. I'm living in Thailand now but that's not going to be forever; in the long term I expect that most of my expenses will be denominated in SGD and that most likely Singapore will be my final retirement destination. Thus even doing things like buying a condo instead of letting the the money sit in the bank would not be out of the question.

If I had money on deposit in a country that I was very likely to go and live in at some point then there is no doubt that I would use some of it to buy property there now.

Unless of course it was a silly country.

Yes, property (or a condo) might be an option though valuations already seem quite rich there.

Not sure how the silly country things fits into the equation. But offhand I'd say that for me Singapore's competency outweighs their ill-liberalness in their social policies.

Edited August 11, 2011 by OriginalPoster

[12DrinkMore]

Yes, property (or a condo) might be an option though valuations already seem quite rich there.

Not sure how the silly country things fits into the equation. But offhand I'd say that for me Singapore's competency outweighs their ill-liberalness in their social policies.

I regularly meet people from Singapore, and am always impressed.

The country has a focus on education, development, manufacturing and trade. Unfortunately (?) they also want to become an Asian Financial Hub and build up financial services. As long as they mimic the Swiss I suppose it might work. If they go for the Anglo-American model they will get screwed.

If we take the other extreme of pandering to minorities, no real leadership and letting the people "do their own thing" as a right, we arrive at riots in the UK.

[Darrel]

Yes, property (or a condo) might be an option though valuations already seem quite rich there.

As far as I know a condo is property. Depending on the country it may also be possible to buy houses there. I dont think the type of property makes any real difference to the theory.

Property prices have a tendency to increase, even if they are already high. Prices on a small island have even more scope for rising, I would say. So probably best to get in sooner rather than later.

Not sure how the silly country things fits into the equation.

I meant silly in the sense of being somewhere where the government does strange things for no obvious reason. Or indeed countries where there is no obvious government.

Much of Africa springs to mind. And some of the former Soviet block countries. North Korea. Etc.

[cheeryble]

I'm also interested in Singapore stocks.

The finance minister recommends the population putting something away for a rainy day.....imagine that it might be a sane country! So great savings %age, government spending to GDP etc etc.

I saw a steady well run company called Keppel Corp....shipyards, land finance etc.(land and finance could be a bubble-risk?) They've pulled back over a quarter recently after a big run up on a great order period which is easing off. The lower price brings the yield up to 4.8%, something I wouldn't mind hearing the ka-ching from every year long term. I must have a look at your list Naam.

What's my easy way to buy from Thailand with the least friction?

I have an IB account in the US anyone happen to know if they cover Singapore and what the friction's like compared to their usual great rates? [yes, I know I could look in IB :-) ]

Also what's the story with withholding tax on dividends......any?

cheers Cheeryble

Edited August 28, 2011 by cheeryble

[Naam]

no Singapore withholding tax on dividends.

http://iras.gov.sg/irasHome/page04_ektid596.aspx#Dividend_payments

[Naam]

I have an IB account in the US anyone happen to know if they cover Singapore and what the friction's like compared to their usual great rates?

i might be able to answer your question if you rephrase it in a language i understand.