or you can treat it as another type of investment that hedge against Ringgit depreciation while gaining extra interest from it.

If you solely look for the interest rate differential gain alone, it is not a place to do but should treats as protect against Ringgit depreciation which is the primary objective of the FD and also for your asset diversification.
If solely look for interest gain then put in Turkish or Brazil currency which are better since interest rate is more than 10%, but this kind of currency is vulnerable so won't be an ideal choice of asset diversification.

That's why banks only offers those much stable currency like AUD, EURO, Yen, GBP, SGD and USD. (USD is one of the weakest among them for time being due to huge currenct account deficit.). It is mean for wealth diversification rather puttting all your money in one basket (ringgit).

For example, if you put AUD at the beginning of the year at Rm2.70/AUD (if plus the commission or charges, you changed it at RM2.73-2.74 while getting 5.9% (1 month). Now, with AUD/Rm2.91 with exchange lossesor commission, you still get at least Rm2.87 from it while gettting extra interest rate from it.

It is not mean for you to speculate and gaining from the differential interest rate rather as asset diversification and protection against Ringgit depreciation if anything happened on Ringgit.
Keep on changing currency, just mean more commission for banks only while you are making a loss from the exchange commission. Generally, you put it as long term investment, just monitor the particular currency movement and their economy situation, if nothing wrong, then just treat it as long term investment.

A lot of people learned this from 1997 crisis. It is not harm done to diversify your asset/wealth.

This post has been edited by cherroy: Jun 26 2007, 06:07 PM

is TS a public mutual agent? (or a public mutual fan?)

Anyone know about foreign FD?

Have to be wise, if not, cry also will be too late

Can you share more?

Merge the topic with previous discussed, check it out.

Thanks...It has been dead awhile...
Can anyone tell me which one better? Local FD or foreign FD?

Can't say which one is better...it's like comparing a green apple to a red apple.

Local FD = no risk, you place a 1 year 3.7% FD and you get 3.7% interest at the end of 1 year.

Foreign FD = expose to currency risk, you place a 1 year 5% FD and you get 5% interest +/- x% forex gain(or loss).

In other words, foreign FDs are more risky because of the uncertainty on the absolute return you could obtain.

I wondering whether overseas FD investment worth it or not. Since now 1 GBP = RM6.5 which is very low.. Is it advisable for me to convert some money to GBP and save it in UK banks in forms of FD?

The question is keeping in UK banks will my money be taxed?

The reason I choose this form of investment is cos it's the least risk free investment I see after keeping in FD in M'sia which is only 3.7% > < Very low. And I'm not a bumi so I can't invest in those Amanah Saham. Even unit trusts have it's risks.

Normally if we convert RM>USD>RM
how much % have we lost in the conversion process?

For counter rate around 2-3%.

If for large sum through structured product, one can get as low as 1%.

According to public bank's website, there's a new campaign to save in foreign currency in FD form. As i might be studying in Australia few months later, i am thinking is it worth to participate in this campaign, any advice from the gurus here?

http://forum.lowyat.net/index.php?showtopi...6&hl=PB+Foreign
http://forum.lowyat.net/index.php?showtopi...7&hl=PB+Foreign

Anyway since you're going over to Aussie, once you reached there; just open one FD account there. I'm sure there's something for student FD.
If you invest it via PB, you'll be loosing out on management fees and currency exchange.

Hi caspersky, since you'll be going there to study, are you planning to keep your money invested for quite some time until you return from studies?
Australian dollar is a good currency, and may appreciate further, but we won't know because we're not experts in this field. Everything involves risks.
As b00n already mentioned, it is better if you take your money over and save it in the FD there.
I lived in Australia the past few years, and one bank there is paying reasonable interest.
It is known as ING bank (not related to the insurance ING ), paying over 6% even for savings if I am not mistaken because I still have some money there and still receive updates from them.
Whatever you would like to do, please do a thorough research and understand them first.
Look at your needs and invest accordingly.
One word of advice is, never only rely on other's opinions, do a due diligence yourself too

Regards,
Alan

There was once we were discussing about this matter in public bank when we saw the flyer(the paper whatever it is)
Then we were discussing half way an irritated aunty(she's definitely angry with the public bank for unknown reason) tell us quite loudly(I'm sure the customer service girl can listen as well) that this is just bullshit as after all the fees we'll be losing our money instead.
So ... up to you to believe or not, but I do believe as this is too good to be true

no point to keep in local bank, you cann't use them as foreign currency ... meaning you cann't withdraw them as AUD in Australia ... when withdraw the money, it converts from AUD to MYR, then again MYR to AUD, you could lost as much as 15% there ...

just open FD in Australia now ... no need to wait till u go there ...

I don't think this can be done, because when I wanted to open an account there, they need your identifications.
You need to either be a PR, or at least a student/employee there.
Should have some sort of permit to live there in order to open an account there if I remember correctly.

I just opened on foreign currency account with UOB Bank last week.

I don't know Pbbank case on the foregin Forex FD issue, but other banks allow you to withdraw in AUD in the form of remittance or bank draft. This one I am quite sure about it but don't Pbbank allows or not as it depends on individual bank policy.
But no cash withdrawal is allowed, that's for sure.

Let's say you put RM10,000 for 1 year in Public Bank Foreign FD,you must take the money out after 1 year regardless of the currency fluctuation, meaning you cannot just leave the money in there and wait for a better exchange rate, they will automatically change it back into RM for you then wait for you to go and take the money. You cannot do auto renewal.

This is what i was told around oct 2007 by Public Bank.