Good afternoon, forummers,....

Just enquiring here if any of you guys have brought back any foreign currencies to be entered into our Msian Banks' foreign currency fixed deposits (FCFDs) ?

I noticed our Msian Banks' FCFDs have higher interest rates than my banks do overseas.

Hoping for some opinions and advice here,... thank you, bros and sis,....

Tq for being among the first to reply, bro,...

Hehehe,... I know, bro,... I saw too. But I don't want to go to Cambodia to open account,...

"that fella action a lot",...

I undetdand where yuo are coming from. My friend 'kena' this too.

Well,... I'll speak a bit more : Among the tactics with which I started my investing life with was with FCFDs - converting my RMs in Msia into foreign currencies and then parking those RMs into FCFDs in Msia,... this was before I came up with the idea of opening bank accts everywhere in the world.

I talked abt this to my friends over dinner and one fellas put a substantial amt into the NZD FCFD which garnered, I think 7+% then,... I told him he must not convert back quickly,... he must be able to let the money stay inside till he has use for that NZD one day.

He had to take out a few months later and suffered exchange loss plus big spread. .... similar to your predicament,...

On my part, after I put into the FCFD, I started opening accounts in Australia, then in SG and Canada. Whatever I had in my AUD FCFD was wire-transferred out to my bank acct in Aust, hence, there is no exchange rate loss. Till today, part of that AUD is still being used in investing in the ASX to generate dividends. My family is using the AUD now in Australia.

Hence, even if the AUD FCFD interest dropped, we need not fear abt exchange losses and big spreads if we have a backup plan in place.

I believed I have addressed your issue.

Added : Bro,.. tq for being the first to reply.

This post has been edited by Hansel: Nov 23 2019, 02:19 PM

Needed banking licence and deposit-taking licence, bro,....

Well,... we're not very sure of the finer details of a banking licence and a deposit-taking licence. The deposits that Transferwise is taking from us is for remittance purposes, ie to be sent out again to a counterparty offshore. These deposits are not to be kept inside Transferwise as FD for loaning out to a borrower, ie to earn a net interest margin (NIM).

I'm sure a licence will want to distinguish all these.

It's for Foreign Currency Fixed Deposit placements within banks inside Msia,... any opinions can share here ?

Emm,... which ctry are you keen on, bro ? Maybe I can help if I know that ctry,....

May not be true the statement below :-
nope sorry cant help you there, i do not have interest in FCFD, my interest is in FD in foreign country which is more profitable.

But,.. I may not know everything,... which ctry, bro ??

I recalled you will have to convert back to the RM when you wished to cashout. Fins out first if you are able to transfer out to another ctry bank acct. when you wished to access your funds.

Tq gamenoob.

I was commenting on the Maybank FCA's foreign currency holdings in the FCA. Does Maybank allow you to TT out your, say USD to an SG USD bank account ?

Or TT-in USDs from an SG USD bank acct to be placed into the FCA USD Fixed Deposit ?

HSBC Premier shld be doable,...

Somehow,... I wouldn't want to lock-up my funds in a Fixed Deposit. I'd want to average down when I feel like it,...

Hence, I've chosen to put my SGD into FSM's Cash Acct... 0.55% p.a., calculated daily and banked-in every quarter. For other foreign funds, yes, into 1-mth FDs. ...

I've also applied for the SSB, November Tranche,...

What have you guys done ?

Thank you for responding, bro,...

Emm,... I was thinking I don't want to lock-up my funds in an FD. Because interest rates are still rising. I will only commit to an FD when I suspect the interest rates have peaked.

Seconldy,... I would want to average down or average-up when I feel like it. So,... don't really want to lock-up my funds, bro,...

Bro,.. DBS FD, 1-mth,... ONLY 3.28%. Got above 4% ??

MMF got principal risk,... at the point of taking-out, you may not get back your full principal, let along any 'interest' to be earned.

USD, bro,... but I put in batches of USD10K each so that so need to withdraw all at one go,... If I break the tenure, I will be penalised for that batch only.

Ok bro,.. don't know-lar,... frankly, I'm still for the higher-risk instruments,... buying-in when I feel like it. Hence, I would want my funds to be liquid and capital-secured.

Thank you, bro harmonics,...

Better be careful before listening to quotes in this forum.

Then you will need a Term Deposit that is calculated daily, paid monthly and has a reasonable interest rate to go with, 'reasonable' being at least 2.5% in today's environment. Can be withdrawn anytime,... no need to wait till the beginning of the following mth..

None that I know of in SG, I put into FSM, quite similar offers, but interest paid out at the end of each quarter. Currently rate at 1% p.a.,...

In Australia,... yes,... interest rate soon to reach 3% p.a.,... interest paid out every mth-end.

SSB is different,... I saw Ramjade commenting after your post. SSB releases your funds at the beginning of the following mth..... not immediately.

Great comparative discussions in the above,... bros TOS, gooroojee and Ramjade,...

CS is having lots of problems,.. I wouldn't put into their FD.

Good for FD enthusiasts.

Bad for MNACT & Mapletree Logistics Trust.

The borrowing cost is really a huge thing to a REIT. I looked closely at the Cromwell Euro REIT presentation slides for 1QFY23 just now....