Spread of buying/selling is around 0.083. So, u hav to regain that amount before making any profits.
But then again, interest rate for AUD is high

Do consider NZD, i'm targetting n monitoring it. Should be quite a good entry (for a relative medium-long term) as RBNZ jus announced a -0.5% to 2.5% interest today

High or not high is a billion dollar question, that nobody knows.

Back few years ago, when RM3.80 vs USD, nobody even dare to predict it will be Rm3.00.
If RM surge another 10%, it is back to pre-1997 crisis.

Back then just after the crisis when Rm4.00 vs USD, if you told someone RM will be back to RM2.70~2.80 one day, it is like a joke. But now, it is not.

0.083 is it wide spread? Why you consider NZD? The rates lower than AUD.

Relatively new in this. Want to ask few questions.

1.What's the minimum amount needed to be deposited? I see PBE put up 10k while, on sites like UOB and CIMB, there isn't any specific amount mentioned.

2. Which bank offers the better rate on NZD and AUD?

3.If I put the FD for one month, will it safer than if I put it for a year long?

1. 10K of that foreign currency (IINM)

2. AUD atm

3. Park that money there and don't withdraw no matter what lor. I rather put in foreign currency FD than in unit trust let the agent earn.

Many unit trust funds give better returns than foreign currency FD even after taking into account the service charge and annual mgmt fees.

I would like to put in Singapore dollar FD for really long time. Let say 10 years. Is it recommended?

Sg FD rate is like <1%. Why not AUD (5+%) leh?

or better, why not bond fund..@ least 6-8% return..sometimes even more

There is no such thing UT, bond fund or which is better than foreign currency or not.

The risk undertaken is different to start with.

UT, you stand a chance to lose your initial capital.
Yes, there are many UT gain quite handsome over the long term, but at the same time, there are UT that make you a loss (I had seen a number of fund registered 30% loss) even after 3-5 years as well.

While for foreign currency FD, if you put SGD 10k, it will remain SGD 10k, you won't lose a single cent in SGD.

Thank you cherroy,
this allocation is for my super low risk portfolio as I
had already invest in stock ( which I consider high risk).

Or is there any other alternatives?
(still learning about silver n gold)

Thanks

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Added on September 5, 2011, 4:00 pmThanks. But it will fluctuate as well. Looking for low risk to be added in my portfolio.

This post has been edited by BboyDora: Sep 5 2011, 04:00 PM

Have u got bonds in your portfolio? Bond is not as risky as you thought. With foreign currency FD, you are exposing to currency exchange risk once u decided to convert your $$ back to MYR. If you want SUPER low risk investment then dump your money into local FD.

FD.. how about the "risk" of inflation?

Perhaps that's a risk unconsidered by most OR maybe bro BboyDora has already considered and this bunch of $ is part of his Asset Allocation into FD - if so, my bad ass-u-me-ing

According to BNM, Malaysia's inflation rate as at May 2011 is 3.3%. So local FD can ngam ngam cover that gua hehehe.

Bro Monsta2011, U of all ppl BELIEVES the "official" inflation rate ar? Stop pulling my leg lar
3.3% right...

eg.
milo 2kg soft pack cost how much now DURING sales? a year or two back cost how much during NON-sales?
normal lunch a year or two back cost how much? now cost how much AND how "big" a portion?

or is it all my personal inflation? ie. the rest of U fellow forumers only buy government price controlled items?


This post has been edited by wongmunkeong: Sep 5 2011, 08:50 PM

Ya, not advisable to leave too much money in FD. one should view it as a temporary car park bay for excess/unused cash.

Planning to put some of my inheritance into Foreign Currency (AUstralian DOllar) deposit.
The rates are quite good to me. Is it a good idea now? for 2-3 years?

In my humble opinion, putting money in foreign FDs is the easy part, bearing the loss in exchange maybe more difficult to accept. When parking ur money in foreign investments make sure u hv sound assets that grow at least in double digit figures to negate the risk of fluctuation against the base currency.
Despite what banks advertise or tell u, it's usually unsuitable to park funds for less than 10 yrs in foreign FDs unless u intend to spend the money in that country or make payment to a foreign party shortly.
Forex differentials can easily wipe out your gains in FD interest in the short term.
Bond funds can give higher rates of return than local FDs but usually in a span of 3-5 yrs so u must not treat them like FDs. There's nothing safer than local FDs for investments periods shorter than 3-5. so don't dream. Only investment vehicles like EPF & a few govt.sponsored unit trusts can give rates higher than local FDs with quality of safety & liquidity similar to local FDs. Bond funds average 1-3% above local FDs but they have a std dev risk of approx 1-2% from their mean.
Don't put short-term funds in long-term vehicles, neither shd u put long-term funds in short-term vehicles otherwise ur funds are likely be eroded by real inflation.

Hi guys, gonna ask a stupid question..

Can i bring physical usd to open this kind of foreign currency account?

No.

For foreign currency deposit or foreign FD deposit, the "money" needs to be in "digital" form, not physical.

Either the foreign currency come from exchange with the bank, foreign currency bank draft or being TT from elsewhere.