Only PBBank impose that rule, for others bank, you don't have to convert back, you can renew or withdraw in foreign currency or convert to other type of currency.

I put in NZ$ st 9% and AUD at 7.25% .  The slippage between buying and selling is about 2.5 %.  Assuming currency remains constant it is still more than double local FD rates after 1 year. So you have some forex exposure which can go either way.  But I think NZ and Oz are relatively safer than Ringgit lor..

Okay this is how I calculate :

Say capital 50,000.

I'm using the price history from March 1 03 to 16 Apr 08.

The lowest conversion rate is 0.35370, so if you convert you get 50000x0.35370 = 17,685 NZD

Now let's invert the exchange rates and look at the price history again.

The lowest conversion rate is 2.04420, so if you convert you get 17,685x2.04420 = 36,151.67 RM

So net loss = 50,000 - 36,151.67 = 13,848.33 (27.7%) or about 5.5% a year annualized.

Interest is 8.5% p.a so net interest is 8.5 - 5.5 = 3% p.a.

What am I doing wrong here ?

Just opened a GBP savings account with HSBC. Pretty painless. These are the fees :

Opening fees : RM100
Yearly fees : RM100
Maintenance fees : RM10/month (waived if balance more than equivalent RM20k)
Deposit : RM100 (will return RM80, minus RM20 closing account fee when closing account)

Rate was 4.7 yesterday. YEAH