Fixed Deposits   

NZD dollar Fixed Deposit at 7.6% for 1 month

Hi taybc1071,

At this time the AUD/SGD pair looks to be on a downtrend. 

See - http://sg.finance.yahoo.com/q/bc?s=AUDSGD=X&t=3m&l=off&z=m&q=l&c=

You should only go long on the FD if the pair is on an uptrend so that you can take advantage of the interest rate differential (ie. carry trade). Otherwise, whatever you gain in the interest rate, you will lose in the exchange rate.

 

taybc1071      ( Date: 26-Nov-2008 10:24) Posted: Is it advisable to park some cash in the AUD FD at this time? Any advice / comments? singaporegal      ( Date: 28-Jul-2008 09:02) Posted: When buying into Forex FDs, besides looking at the interest rates, we have to look at the economy of the foriegn country vs Singapore. The best case scenario is that the foreign country is planning to raise interest rates sometime in the future (signs of this are increasing inflation with good economic growth).   Actually for the NZ case, if you take a look at the published interest rates, you'll see something strange. For longer time frames, the interest rates actually drops. This is a sure sign that the NZ government is going to cut rates. So this rate cut isn't really surprising.

 

Is it advisable to park some cash in the AUD FD at this time? Any advice / comments?

singaporegal      ( Date: 28-Jul-2008 09:02) Posted: When buying into Forex FDs, besides looking at the interest rates, we have to look at the economy of the foriegn country vs Singapore. The best case scenario is that the foreign country is planning to raise interest rates sometime in the future (signs of this are increasing inflation with good economic growth).   Actually for the NZ case, if you take a look at the published interest rates, you'll see something strange. For longer time frames, the interest rates actually drops. This is a sure sign that the NZ government is going to cut rates. So this rate cut isn't really surprising.

 

When buying into Forex FDs, besides looking at the interest rates, we have to look at the economy of the foriegn country vs Singapore.

The best case scenario is that the foreign country is planning to raise interest rates sometime in the future (signs of this are increasing inflation with good economic growth).

 

Actually for the NZ case, if you take a look at the published interest rates, you'll see something strange. For longer time frames, the interest rates actually drops. This is a sure sign that the NZ government is going to cut rates. So this rate cut isn't really surprising.

 

Hi... i just having thought of putting into this investment but still think the risk is there for that kind of return... Why not wait till something which is lower risk and higher returns?? I hope i can offer now to you guys a better investment programme now but things are still not that firm up yet.. Keep browsing this forum and when time is ripe... i will release the breaking news out to you guys ok???

good things a.k.a good investment are worth the wait....

It's about investing locally in service apartment near city area.. 100% own by a Singaporean and legally binded terms...

 

cheers.. till then let still look into stocks though it's more risky but fun in trading

 

Yea interest rate getting cut. Rate so high confirm got problem

educator      ( Date: 24-Jul-2008 13:36) Posted: Wah! Luckily I did not buy into NZD fixed deposit. NZD just crashed today.  AUD is still going strong.

 

Wah! Luckily I did not buy into NZD fixed deposit. NZD just crashed today. 

AUD is still going strong. 

 

I have put in around $50K with AUDSGD fixed deposit with DBS and let it roll every month.


The interest rate is around 6.6%.

I chose the AUD because it is much more stable against the SGD. Anyway, if the currency suddenly depreciates against the SGD, I can still pull out my money at the end of every month.

 

a yoh, AK don't recommend to buy what stock as the market is so volatile. i only mention which stock is standing good couples with other related issues. With no compulsion.

basically, if u want to do any high risk stunt, ie stock market, finding companian( :) ) etc, u must be experienced(see things over yrs n doing home work), alert(know the 5 Ws and H) and $ well supported.  

as AK posted earlier, i wouldn't do anything, just watching EU soccer, give ownself half day off from screen to relax.

taybc1071      ( Date: 18-Jun-2008 21:21) Posted: agree the bank rate is terribly low. Promotion rate of more than 1 year is usually tied to a conditional as mentioned by AK. It's good  to transfer some money to stock and reserve some for rainy days. But then what stock to pick? Any advice from you, AK?     AK_Francis      ( Date: 18-Jun-2008 19:06) Posted: bank rate had seen fell drastically after the credit crunch. now most bank FD prime rate is lower than 1 %. DBS only give u 0.92 % p/a if you give them 50k. 0.5 % for a mth. any bank gives u more than 1 % for a mth is conditional one. ie, you hv to buy unit trust or bonds with certain amount b4 they could give u that negligible 1 mth interest. don't kena corn by all those so-called fund representatives sitting around the corner of each bank. Pse note that u hv to pay for at least 4-5 % of management fee of the unit trust u wanted to invest. May bank generally offers better rate, esp for those senior citizen, above 55, they will offer u anotehr 0.25% over and above the base rate given. AK had been withdrawn all my FD at Maybank as the int rate is too low. I used them on stocks alrdy. BTW, AK treated the full RA at CPF as FD, as it yield 4% int p/a.

 

I agree with you. 

I ended up buying the AUS dollar FD instead because it seemed more stable against the SGD. 

jasonfaxingliu      ( Date: 19-Jun-2008 09:19) Posted: yes, consider 2X exchange losses, unless you invest in a currency that will appreciate against S$ and yet with high yield

 

yes, consider 2X exchange losses, unless you invest in a currency that will appreciate against S$ and yet with high yield

 

Foreign currency has risk too! so be careful. Equity is still the best if you can hold long term. Remember to put some for emergency cash as well.

 

agree the bank rate is terribly low. Promotion rate of more than 1 year is usually tied to a conditional as mentioned by AK. It's good  to transfer some money to stock and reserve some for rainy days. But then what stock to pick? Any advice from you, AK?

 

 

AK_Francis      ( Date: 18-Jun-2008 19:06) Posted: bank rate had seen fell drastically after the credit crunch. now most bank FD prime rate is lower than 1 %. DBS only give u 0.92 % p/a if you give them 50k. 0.5 % for a mth. any bank gives u more than 1 % for a mth is conditional one. ie, you hv to buy unit trust or bonds with certain amount b4 they could give u that negligible 1 mth interest. don't kena corn by all those so-called fund representatives sitting around the corner of each bank. Pse note that u hv to pay for at least 4-5 % of management fee of the unit trust u wanted to invest. May bank generally offers better rate, esp for those senior citizen, above 55, they will offer u anotehr 0.25% over and above the base rate given. AK had been withdrawn all my FD at Maybank as the int rate is too low. I used them on stocks alrdy. BTW, AK treated the full RA at CPF as FD, as it yield 4% int p/a.

 

bank rate had seen fell drastically after the credit crunch. now most bank FD prime rate is lower than 1 %. DBS only give u 0.92 % p/a if you give them 50k. 0.5 % for a mth.

any bank gives u more than 1 % for a mth is conditional one. ie, you hv to buy unit trust or bonds with certain amount b4 they could give u that negligible 1 mth interest. don't kena corn by all those so-called fund representatives sitting around the corner of each bank. Pse note that u hv to pay for at least 4-5 % of management fee of the unit trust u wanted to invest.

May bank generally offers better rate, esp for those senior citizen, above 55, they will offer u anotehr 0.25% over and above the base rate given. AK had been withdrawn all my FD at Maybank as the int rate is too low. I used them on stocks alrdy. BTW, AK treated the full RA at CPF as FD, as it yield 4% int p/a.

 

Thanks to all for your inputs.

I decided to go for DBS instead because I don't have OCBC account. Very troublesome to setup another bank account.
 

 

Yeah I also agree with you. Just to set a portion of money aside incase of rainy days. And since NZ is higher interest. Don't expect to touch it in the near future. But since trading is higher risk but better returns, a portion has to be set to it too. Balance is the key. 

HLJHLJ      ( Date: 18-Jun-2008 13:15) Posted: Looks like rates going up! Why? Market going to rally? If you all put in, then cannot invest if market rallies. My advice is dont put too much into it. Save some bullets for yourself to invest in equity. Equity is still the best.

 

Looks like rates going up! Why? Market going to rally? If you all put in, then cannot invest if market rallies. My advice is dont put too much into it. Save some bullets for yourself to invest in equity. Equity is still the best.

 

OCBC offers better rate. I bank with them. For rates, go to https://www.ocbc.com/internet-banking/ then click on tools and info, rates, foreign currency FD/CD. 

educator      ( Date: 18-Jun-2008 08:09) Posted: Hi all, I saw that Maybank offer this Fixed Deposit for 7.6% p.a. for 1 month. Looks very attractive but I am worried about the foreign exchange risk. Any advice for me?

 

Thank you very much. 

I think I will go down to a DBS branch later to find out more. 

nickyng      ( Date: 18-Jun-2008 09:18) Posted: hey!! chk out DBS...thk they got better rate siah !!   http://www.dbs.com/ratesonline/fdacu.html   anyway NZ$ is drop Vs S$ :P  educator      ( Date: 18-Jun-2008 08:09) Posted: Hi all, I saw that Maybank offer this Fixed Deposit for 7.6% p.a. for 1 month. Looks very attractive but I am worried about the foreign exchange risk. Any advice for me?

 

hey!! chk out DBS...thk they got better rate siah !!

 

http://www.dbs.com/ratesonline/fdacu.html

 

anyway NZ$ is drop Vs S$ :P 

educator      ( Date: 18-Jun-2008 08:09) Posted: Hi all, I saw that Maybank offer this Fixed Deposit for 7.6% p.a. for 1 month. Looks very attractive but I am worried about the foreign exchange risk. Any advice for me?

 

Hi all,

I saw that Maybank offer this Fixed Deposit for 7.6% p.a. for 1 month. Looks very attractive but I am worried about the foreign exchange risk.

Any advice for me?