This is a very simple concept.

Since now NZD interest rates is around the highest levels seen since sometime. The NZD currency is also very high now. If you noticed, only recently banks started to promote this type of savings account. Actually this type of accounts has been around for a very long time.

Currently my personal view is interest rates in NZD will be hike a maximum one more time. And from then on, interest rates will be cut gradually.

And this will cause the NZD dollar to depreciate against other currencies including the dollar and ringgit.

So actually say u keep this savings account in NZD for 5 years. You will actually break even or might even lose due to currency conversion lost.

Banks are very smart.....don't be fooled.

Cheers.

Good explaination there.

A lot of ppl do not understand the financial products they are buying or getting themselves into until they LOST.

Hopefully they can see the bigger picture.

Everything in this financial world is related.

Currency to stock market to inflation to interest rates to employment and etc.