QUOTE(cherroy @ Mar 21 2012, 11:06 AM)
Please do not include this into the FD discussion. It is totally different with FD issue.
Mind that, forex trading and leverage is illegal in Malaysia apart from done BNM certified banks and finance institution/brokers.
AUD FD remains as FD, just like one needs some AUD for the future, and never consider to change back, the foreign currency exchange risk for AUD FD is out of window already.
Placing foreign currency FD means you wish to have the currency or wish to place the money in foreign currency, it is not solely to gain the interest spread alone.
Yup exactly,
Dollar for dollar. I do have investments in both Australia and Malaysia. However when I invest in Australia I do not think about the currency change but how the value in itself can help increase my investments. Therefore, I still haven't got an answer,,is it better with 6.50 variable savings account or 5.50 fixed deposit?
Added on March 22, 2012, 3:06 pmQUOTE(gsc @ Mar 20 2012, 11:34 PM)
which bank?
Earlier saw OCBC got promotion on foreign FD
Bankwest, it has a 6.50 % right now.
Added on March 22, 2012, 3:10 pmQUOTE(tbheng @ Mar 21 2012, 01:55 PM)
Hi guys, just want to voice my 2 cents on this...
ya I personally tried FX before but no more...didn't know it is illegal...if so, will invest on something else..
Frankly, before I go for 4% FD with ocbc in Jan this year, I was toying the idea to place my money into AUD FD, but after counting the spread, not much gain as compare to local FD...(of course if your timing is right, then diff story). If there is a separate thread talks about this, please put a link here, I am interested too. Can diversify my investment a bit.
I am in PCI (Premier Currency Investment) for the past 3 years with SCB, similar like DCI cherroy mentioned, it is an interesting product which yield rather well, but it is OT to discuss here...
Is there a thread on this?
Yeah , that was what I was wondering too For now, I have two fixed deposits with HSBC. However, the interest gained on AUS FD is soooo much higher that I am actually thinking about taking out all my FD in Malaysia and putting it into Australian FD. Even after the loss of exchange rate and bank fees,the returns is still higher. For example, I have gained the same amount of interest on my savings variable intersest account in ONE month(Australia) compared to a FiXED deposit account in Malaysia for THREE months. So yea, even one of my friends who does banking in Malaysia came down here for a holiday one time and we were walking pass the street and he saw the interest on a normal savings account and was shocked. So now I am putting some of his cash in my account since I already have a visa.
Added on March 22, 2012, 3:14 pmQUOTE(lkcheng @ Mar 21 2012, 09:44 AM)
Foreign currency FD like AUD offers an attractive interest rate but if we place an AUD FD, it is actually an investment. It is just similar to buying a currency pair AUD/MYR. If AUD appreciates when you FD is mature, then you'll earn interest plus exchange gain but if AUD falls then, your interest might not enough to cover the exchange loss and end up a loss.
Right now AUD has reached 10 years highest against MYR according to the chart. It might continue to rise but it left a lot of space to fall. So, I think the risk of AUD FD is higher now. Some more, the local banks charge very high spread. The currency spread alone already wipe up 2% to 3% of your interest depending on which bank you deal with.
It is better to do carry trade in Forex market if you like to invest in foreign currency for interest. The spread is far lowest and every broker offers leverage.
Don't worry about that buddy. The interest gained will be more than enough to cover the loss of during the exchange rate/bank fees. EVEN if AUD depreciates- the interest gained will make up for the loss.
This post has been edited by Beachkid: Mar 22 2012, 03:14 PM 
Mar 19 2012, 01:10 PM
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