Bond funds have sales charge ranging from 0.25% to 3%. Yes, PM have one of the lowest bond sales charge of all UT companies and also AMBOND has 0% charge. The FD promotion is for equity funds only, hence the high sales charge.

This post has been edited by gark: Feb 16 2011, 09:38 AM

Dual currency account is not exactly FD, it is a derivative instrument. And it's risk are much higher than FD. You losses and gains is determined by the 'strike rate' which in your post is termed as 'forex rate'. Usually bank hedges the bet by setting the 'strike' rate higher then the actual interbank exchange rate (not board rate). Interest rate is negotiable and is usually higher as the 'strike rate' is revised higher. In return for your 'investment' the bank will buy a 'naked put option' on the currency and hedges the bet.

Please understand what you are doing and the calculations involved before you proceed.

Here is more details on this derivative instrument... Dual Currency Deposit

This post has been edited by gark: Apr 6 2011, 12:33 PM

Actually DCD can have very high interest rate as long as the bank can set a higher 'strike rate'. Remember these are NOT FD instruments.

Ah so you are actually hedging your DCD with your need for foreign currency. Well it is advantageous in your situation as long as the forex do not change a lot. If big changes you still lose as the 'strike rate' is high compared to spot rate.

Wah.. what kind of boss you have play FD like play share market, must check everyday. If you got lots of cash and time just go and negotiate with the bank directly to get better rates.

This post has been edited by gark: Apr 6 2011, 01:37 PM

I have FD account in Indonesia... 6.5% p.a. for 12 month deposit..................... but there is a 20% tax on interest.

You are better off in putting in Retail ORI (Obligasi Republik Indonesia) or Sukuk which is giving 9%-11%, but still taxed at 10%. Minimum purchase 50 million rupiah per tranche.

House loan here is scary.... 14% interest per annum, max 15 years only.

This post has been edited by gark: Apr 16 2011, 04:07 PM

Yes you can, you must have a bank account in Indon. Usually retail ORI or Sukuk is offered by premier banking. Or you can opt to buy Indonesia fixed income funds. Will rupiah drop? No one knows....

Based on the many threads on money-back guarantee or savings type insurance, all the calculation shows that the earnings will be lower than FD over the long term. So far we have not seen a savings type insurance have higher gain than FD.

Can try Indonesia.. currently 6.75% for 12 month FD.