The risk is the exchange rate.


Protected in the said currency only.


Interest is fixed when you opened the FD account.


No. It follows the interest rate stated in their system and also your FD receipt when you opened your account. Assume there is an increase in the interest rate by the time your FD matures, it will still follow the old interest rate.

https://www.pbebank.com/en/en_content/perso...ates/index.html

Take AUS dollar as an example,
selling 3.169 and buying at 3.082,

assuming you buy now and sell immediately and the exchange rate didnt change at that instant,

you already loose out 3.169 - 3.082 =0.087

0.087/3.169--or 2.74

FD rate 5.45% - 2.74% = 2.71% net interest which is worse than local currency FD (assuming no change in exchange rate)

every investment got risk. Foreign currency FD principal is 'protected' on the face value of the foreign currency. interest rate may fluctuate as when bank declares. Same as local currency FD when mature you either have to convert back to RM or keep renewing it till the exchange rate is favourable to you.

"eg: affin bank says 3.8% but at the end of the tenure not really 3.8% right?" not sure about your statement but if local FD it is fixed unless it is Islamic type like BSN then the dividend is projected.

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

this is good info... thanks... the exchange rate is really killing...
no point keep in Aus FD already...

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

Now which bank offer the highest FD rate?

u might want to ask in this thread..

http://forum.lowyat.net/topic/720041

"Sorry, the link that brought you to this page seems to be out of date or broken."?

Thread merged. Hence the broken link.

I have some Fixed Deposit in Account.

a) If I take out the $$ b4 maturity date, do I still get part of the interest ?

b) If the previous maturity date is 12 months, after maturity date, it also AUTO RENEW to 12 months ?

c) can I change the maturity date to 1 month ? (EVEN B4 maturity date)

a) no.

b) yes.

c) yes, but you have to inform the bank yourself.

This post has been edited by buysell: Aug 27 2011, 01:30 PM

I have some Fixed Deposit in Account.

a) If I take out the $$ b4 maturity date, do I still get part of the interest ?

b) If the previous maturity date is 12 months, after maturity date, it also AUTO RENEW to 12 months ?

c) can I change the maturity date to 1 month ? (EVEN B4 maturity date). Can I do it at other branches ?

d) If I loss the FD slip, can I still renew the FD to other term ?

This post has been edited by Irresistible: Aug 27 2011, 09:56 AM

depend on amount and tenor

yes

yes

mafan.

a) nope... coz just did it last 2 weeks.. hong leong bank forfeited my interest

b) yes

c) yes u can change even before maturity but interest will burn... i think can do it in other branches... as long as u bring along ur FD cert + IC

d) this one really no idea.. but im sure that if u want to prove that u r owner of the FD ie to draw out or make any change will be definitely troublesome >.<

This post has been edited by joey85: Aug 27 2011, 11:45 AM

nowadays most of the bank already have AUTO renew for FD unless those "old" FD

This post has been edited by insaint708: Aug 27 2011, 12:27 PM

Hi Cherroy,

sorry, i'm a bit noob on this, what is DCI method? I know DCA is dollar cost averaging, DCI is something similar?
thanks.

FD really hopeless, might want to invest in GOLD soon since GOLD price increasing.

This post has been edited by buysell: Aug 28 2011, 05:17 PM

OK, thanks

If you want to topup your child's HLB Junior Fixed Deposit for the up yo 4.5% p.a. (for 36 months), you should go back to the same branch you open the account at for quicker processing (i.e. no forms to fill up)

it might drop also...
FD confirm earn 3%.... but gold if price drop...then your money burn also ...