It comes with devaluation risk

http://www.bloomberg.com/news/2011-02-11/v...s-imf-says.html

If got 30% per month, surely one will "rich very fast"....

or can we call it "rich very fast" "FD"?

If true, HK citizen all rich already...

It is an combination of saving account and endowment plan.

It is not FD.

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Added on July 15, 2011, 3:08 pmThis is a 15 year saving plan commitment.

Please be sure you can afford the 15 year commitment.


This post has been edited by cherroy: Jul 15 2011, 03:08 PM

If they unable to explain, scold them back.
Want you to sign up, yet cannot explain and let the customer understand.
Unprofessional.

http://ocbc.com.my/personal-banking/bankin...derExpressE.pdf

Basically it is just another insurance saving plan, just they could be structuring to link with saving account, some sort like deduct out from your saving account.
I might be wrong, as I have no details of it.

You wish it to be 12%?

I certainly not.

Greece 10 years bond has >15% yield, you want or not?

You want >10% interest rate, only with condition like

1. Country situation is in bad shape, need higher interest rate to attract money or secure the money within.

2. Extreme high inflation.

So none of those situation, one wants to be in.

Where got high?

Aussie overnight rate only 4.75%.

Aussie interest rate is higher than other because RBA (Reserves Bank of Australia) always more hawkish about inflation, they generally more concern about price stability vs most central banks that are more pro-growth and flooded the market with money.

Also Australia is commodities based economy, whereby it is not easy replaceable by others, unlike manufacturing goods, you need low interest rate, low currency valuation to spur the industry or having more competitive compared to others countries.
If not, the manufacturing easy to lose out, and shifted overseas.

So this resulted Australia tends to have higher interest rate in its history.
Just some of my personal view.

Most banks here offering 1 year AUD range from 5.x%+, doesn't need to fly over there, have address there as many hassle mentioned before.

Even without through DCI, one can always ask for better rate if sum is significant enough.
Generally banks can give some discount over the counter rate published which can minimise the exchange spread loss.

1) This I agree.
2) No matter how, the low interest rate of 1% indirectly create the bubble, eventually crisis.
Because low interest with liquidity flooding mean there is "huge force" on cash to "do something", and low rate always induce people to borrow more, eventually complacency happened.

3) no comment.

If interest rate is low, leveraging cost is low too.

Interest rate, hard to find good return, so people find way to make better return.

If stock div yield is 5%, while borrowing cost is only 2%, it drives people to do leverage, can get 3% net return with free money, (you don't even need to fork out a single cent).

Same with properties.
If mortgage rate is low, people tend to buy more properties, eventually drive up leverage as well.
Mortgage rate is 3-4%, can you can rent out with 5% yield, people may say you are fool not to buy properties.

This pile on and on, and complacency happened, prime loan cannot loan out anymore, subprime also take.

If there is no 1% interest rate, instead 5%, there is less tendency of over-leveraged, and may reduce/minimise what had happened.
If there is 5% rate, it may drive some people to put money into the deposit, instead housing, leveraging derivatives.
Just like saving account now, mostly 0.1~0.2% across, most people now, do not bother to deposit money into saving account. It is like a useless account now.

We can say low interest rate is not direct culprit (the direct culprit is greed), but we cannot deny low interest rate is a strong or initial pushing force for leveraging.

Even after 20 years compounded on 1 cent, it is not even enough to pay extra-parking fee due to longer wait in the bank...

For a person that has 1 million, and intention to do 200x FD, to earn Rm1.00......

Doing 200x FD can mean consume at least half a day on the teller/cashier/officer.
Rm1.00 can pay parking fee for half day?

Keep 200x FD receipt, easy to manage?

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Added on August 24, 2011, 4:17 pmThis is quite normal for people to split FD for emergency withdraw so that do not compromise or lose of interest on whole lump sum due to premature withdrawal, but Rm1 million for 200x Rm5k FD transaction, is overly.



This post has been edited by cherroy: Aug 24 2011, 04:17 PM

Foreign currency FD is for one wish to diversify their money into foreign currency.
This should be the primary reason why you opt to have foreign currency FD.

Anything about foreign currency FD,
https://forum.lowyat.net/topic/512136/+420

You want cheaper exchange rate, then can go through DCI method.
You can exchange at spot rate instead of normal high spread counter rate.

There is still point to keep AUD.
Last time, it was 2.7~2.8, even taking the high spread, you are still earn decent capital gain, plus the higher interest rate 5% vs 3% of RM.

This post has been edited by cherroy: Aug 25 2011, 03:27 PM

Highly the interest rate may be the same throughout this year.

Those super high rate currency, generally has considerably high risk of its currency depreciation.

Generally those country is under severe inflation problem, thus having high interest rate.

The most I hate is when people want to place FD, the bankers told they have better product with higher interest rate eventually, direct people to saving plan.

Saving plan is not FD.

Please again don't mislead people, it is an insurance, IT IS NOT LIKE FD.