QUOTE(shinzen90 @ Apr 28 2019, 09:32 PM)
Okay thank you.
What is purely saving, for FD, malaysia bank offer higher rates.
I think maybe RM inflation higher than Sgp, that why sgp offer low fd interest rate.
Am I right?
Yes FD interest in Malaysian is higher but we have weaker currency. That's why developed country can afford to borrow at say 1-2% while developing countries like us need to fork out 4-7% to borrow. This is because developed countries are deem safer. Investors want more return for the risk they are putting their money in that's why they demand a higher rate from developing countries. Rates are controlled by the central banks of each country. What rates the central bank chooses will basically be what the country FD rates is. Like in Europe and Japan, their central bank policy is negative policy so if you put money in the bank, you are losing money.
Looking at rates is one thing but no point if you have high rates and currency keep dropping as overtime, your cost of living will go up as you need to fork out more of your local currency to import things from other country. Not to mentioned cost of foreign expenses will go up like overseas holiday and overseas study for kids.
Of course, if one have lousy currency but good investment, you still can win a good currency sitting in a bank. Take for eg RM vs SGD, RM is dropping 2%p.a against the SGD for 30+ years. Now if you put money into Malaysian fixed deposit, yielding 3-4%p.a your actual yield against SGD sitring in a bank account will be nett about 1-2% (FD Internet of 3-4% - depression of 2%). But if say I am able to get 3-4% return in SG, my returns vs RM will easily be 5-6% vs the RM.
Keep in mind if you want to put money into SG banks, expect returns of max 1-2%p.a. That is including their FDs.
So again the question come back to what do you want to do? Put money in the bank/FD only or other stuff. If you want access to better investment, no doubt SGD is better than RM as you can easily invest in US using SGD vs using RM. RM is not a very acceptable international currency. So if you are aiming to put money into SG banks, think again as our amanah saham fixed price fund maybe a better bet vs bank accounts/SG fixed deposit. Then RM maybe a better choice Of course if you are talking about SG stocks, then is a whole different situation.
The thing is you must know what you want to do with your RM/SGD.This post has been edited by Ramjade: Apr 28 2019, 10:36 PM