the pleiadian Posted October 14, 2006 Share Posted October 14, 2006 Banks in Hong Kong and Singapore and many other locations offer more than 7% per year interest on New Zealand dollar fixed term account. I plan to open a fixed 6 month auto roll-over New Zealand dollar account in my HK bank with over 7% annual. Anyone have any insight why this currency offer such a high interest, and any risk involved? Link to comment Share on other sites More sharing options...
cclub75 Posted October 14, 2006 Share Posted October 14, 2006 Banks in Hong Kong and Singapore and many other locations offer more than 7% per year interest on New Zealand dollar fixed term account. I plan to open a fixed 6 month auto roll-over New Zealand dollar account in my HK bank with over 7% annual. Anyone have any insight why this currency offer such a high interest, and any risk involved? You have answered the question yourself... High yield = high risk and/or high imbalances. It's fair, nope ? On the other hand : Swiss franc... interest rate almost zero. Go figure... You gain 7 % per annum, but you could lose much more in exchange rate against your home currency. Think a currency like a stock, a share of the country wealth. As for myself, I prefer AUD : lower yield 5.XX %) but stronger economic perspectives. Link to comment Share on other sites More sharing options...
Gary A Posted October 16, 2006 Share Posted October 16, 2006 Even though the US dollar has weakened, the NZ dollar has weakened against the US dollar. That and the inflation rate is going to be closer to 4% than 3%. I think you will also have to pay NZ taxes on interest gained. Link to comment Share on other sites More sharing options...
kiakaha Posted October 16, 2006 Share Posted October 16, 2006 Even though the US dollar has weakened, the NZ dollar has weakened against the US dollar. That and the inflation rate is going to be closer to 4% than 3%. I think you will also have to pay NZ taxes on interest gained. With an approved issuer like the BNZ, you can get an exemption from the Non Resident Withholding tax and instead pay only a 2% levy on the interest (I am a BNZ Private bank client, so this info is first hand). Link to comment Share on other sites More sharing options...
bendix Posted October 16, 2006 Share Posted October 16, 2006 I can endorse that. You need a form called Authorisation to Deduct Approved Issuer Levy. By the way, go direct to BNZ and they currently offer 7.35% on 120 day term. Link to comment Share on other sites More sharing options...
kiakaha Posted October 16, 2006 Share Posted October 16, 2006 I can endorse that. You need a form called Authorisation to Deduct Approved Issuer Levy.By the way, go direct to BNZ and they currently offer 7.35% on 120 day term. You get a much higher % at BNZ Private Bank. Link to comment Share on other sites More sharing options...
lannarebirth Posted October 16, 2006 Share Posted October 16, 2006 Banks in Hong Kong and Singapore and many other locations offer more than 7% per year interest on New Zealand dollar fixed term account. I plan to open a fixed 6 month auto roll-over New Zealand dollar account in my HK bank with over 7% annual. Anyone have any insight why this currency offer such a high interest, and any risk involved? As the saying goes; "more money has been lost chasing yields, than at the point of a gun". A couple of questions I'd ask myself are: 1) Would I be comfortable holding $NZD indefinitely, buying at today's exchange? 2) Is that a 3 wave correction on the chart (in which case you're in clover), or is it just finishing the fourth wave of a 5 wave correction. http://stockcharts.com/h-sc/ui?s=$NZD...&a=57558232 Link to comment Share on other sites More sharing options...
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