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High Interest Savings Account... in a different currency?

Discussion in 'Business, Investment and Economics' started by jank, Nov 13, 2011.

  1. jank

    jank

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    As the title says, is it possible to do in Australia? Or one must open an account in another country and transfer money into it? Just curious. Especially looking for USD
     
  2. So_Cynical

    So_Cynical The Contrarian Averager

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    I think NAB lets you open USD accounts... don't know about the interest?

    also

    I know (non resident) foreign nationals can open interest paying foreign currency accounts in Sri Lanka.

    http://www.standardchartered.com/lk/personal-banking/banking-for-non-residents/en/RFC.html

    I seriously doubt there is such a thing as a high interest (5%+ USD) account anywhere...perhaps West and Central Africa or parts of Central and south America. :dunno:
     
  3. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    If you have a currency aco**** hten you will get that currencies interest rate (less bank spread of course). That is the whole premise of currency valuation, interest rates in one country versus the other.

    If you want something like this you would be better off trading currency cfds/derivatives
     
  4. LifeChoices

    LifeChoices

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    High Interest Savings Account in the U.S........ I don't think so.

    I opened an account with Wells Fargo when I was in the U.S. recently. I believe you have to go there to open an account, as we had to show various id's etc.

    There is no interest, and the fees are quite high if you don't meet their quotas. You can transfer money into and out of it using wire transefers only - which is a little unappealing, as they are reasonably expensive.

    You could look at a Commonwealth Bank Travel Money Card - you can transfer in and out of many currencies. Some people find these handy for traveling - however, I found it about as useful as an ashtray on a motorcycle.

    Not really for the product, but the way hotels/merchants can put holds on your money for up to 16 days - so the available balance never really matches what you have available - I found this most frustrating.
     
  5. Billyb

    Billyb

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    And fees eg 1% of transaction value plus more fees to access your physical money later.

    If you're after a high interest overseas - what's wrong with Australia? The interest rates here are phenomenal compared to just about anywhere else.
     
  6. LifeChoices

    LifeChoices

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    Not only that, if you have money in there when the card expires - you can say Ta Tah to that.
     
  7. noirua

    noirua

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    Interest rates tend to be very low in Europe, UK and America. So unless yours is a pure currency gamble there is little point.







    Votes vitally needed in the favourite forum contest at The Bull. All separate votes at a different IP address in Australia. http://www.thebull.com.au/the_stockies/forums.html
     
  8. waimate01

    waimate01

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    It's important to have clarity of mind about whether your goal is to speculate on currency movements, or to compound your money at a percentage rate.

    You can earn 20% interest on bank deposits in Angola, 17% in Venezuela, 12% in Ghana or Nigeria, 11% in Brazil, 7.5% in India. But currencies move, and what you gain might be *more than* wiped out by exchange rate fluctuations.

    US dollar accounts in Australia pay US interest (ie, pretty much none).

    Once you've got clarity of mind over whether your goal is compounding or Forex speculation, you have the option of doing either, separately. What you're looking at is doing both at the same time, which involves exposing yourself to risk on a two dimensional axis rather than one dimension. More ways for it to go wrong; and more way for it to go right as well; but inherently harder to analyze.
     
  9. So_Cynical

    So_Cynical The Contrarian Averager

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    You can open a USD account in Ghana but you get a USD interest rate to, probably around 1 or 2%.....years ago (late 90,s) you could buy Ghanaian 90 and 180 day treasury bills that paid something like 25% interest PA.

    For a few years there you could of made good money just buying Cedi denominated Bills and repatriating profits in USD.
     
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