to me, this is a bad investment, as both the interest and exchange rate are in op risk, if we invest in 12 months tenure. usd, pound sterling and euro are about at their peak interest.

exchange rate is too risky as we do not have the control to put long or short over the currencies we hold .

as what one of the forumer indicated, his calculation is very clear to show us the risks that we need to take.

lastly, bank never make loss profit business. just my opinion.thanks

pls kindly correct me by saying this is a bad investment, which i did not mean it. appologise...what i am trying to express is it might not be as good as what we predict.

hong leong bank do the same as pb bank by converting back to myr when matured. so, are u missing another bank ? i am 100% sure about this at hong leong bank,cause i tried before...

the issue now is, when your foreign fd matured, can u withdraw the sum of money in the foreign currency that u deposited. u do not need to convert back to myr and convert back to the foreign currency again when the money matured.

the rules of the game is -
1. if u wana deposit into australian dollars, u have to bring a bag of malaysian cash (malaysia currency) to the bank. the bank manager will convert your money into australian dollars. from here, ur interest begin.

2. when ur money matured, for example, after 1 month, if u think u wana reinvest into this kinda fd again, u can auto renew, there is no need to convert the aud to myr and to aud again....

3. the last and big issue here is, when ur money matured, u are not allowed to withdraw the money in australian dollars not, the bank will auto convert the aud into myr depends on the day's conversation rate......

if the bank allow the investor to withdraw the cash in the foreign currency, i will be the 1 to first q up in any bank that offer this scheme....

lastly, bank will not do a business that do not profit them.

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Added on June 26, 2007, 2:25 pmcherroy, which bank do such a good stuff ????? can u pls let me know....i am ready to q now with cash ready.

This post has been edited by a6meister: Jun 26 2007, 02:25 PM

to remit the currency to oversea country ? so, that mena, i will need to open an acount in hsbc, royal bank of scotland or any uk bank if i deposit the fd into gbp ?

honestly, i dont think it make sense.

i was first introduced to this investment years ago unti recently, Standard chartered bank call me again to review it. from my rough understanding, it is a buying a foreign currency with guaranteed interest payment.

for assumption -

gbp/myr

1. The bank strike rate of 7th sept 2009 is - 5.71
2. spot rate as of 7th sept 2009 - 5.77
3. Lock in period - 2 weeks (minimun)
21st of sept, the spot rate is above 5.71, we will get the 8% interest in MYR.

SECOND SCENARIO,

if the spot rate is below strike rate of 5.71, we still get 8% interest, but the money will be converted to GBP.

Once converted to GBP, we can still exercise the above scenario, with interest paing of 8% and waited to be converted to myr. But, from here, how the strike rate and spot rate is determined, i am confused.

so, perhaps someone experienced can share the info here.

yes, is called dual currency investment.
But, in the scenario that if the pair falls below the strike rate, it ill be automatically converted into gbp. what i not sure is, once converted into gbp, what will happen then ?

Cherroy, perhaps u can help me to understand.

cherroy,

did u personally deposit in this dci ? what is ur opinions about it? as for me, i just made the first deposit with standard bank. it is my first time into it.

how much in usd and what is the rate u converted ? i think last few weeks is quite good the rate, which mostly above 3.51 till 2 yesterday, it was 3.46