FD in foreign currencies

[dinky]

Hi,
Need advice from some kind souls..
Was thinking of putting some $ into icici bank. Is it safe ?
Is it the right time to put AUD time deposit now? Or wat currencies would u advise?
Thanks thanks....

[buttercarp]

I think alll deposits up to $50K is covered under insurance so it should be safe.
Foreign FD is a bit tricky as it is subjected to currency fluctuation.
Why not singapore FD if you are thinking of FD.
The foreign banks in general should give slightly better FD rates than local banks.

For foreign currency FD.....

You have to see what is the spread.
The difference between the buy and sell prices is known as the spread.

Eg..... ABC is an imaginary currency.
A bank is selling ABC $1 for SGD $1.35

but is buying ABC $1 at SGD $1.30

So upfront the depositer loses 1.85%.
And if he redeems back his SGD, he loses 3.7%.

So 3.7% is the spread.

So if the bank is offering 5% interest on ABC FD, means you actually you get 5-3.7= 1.3%.

This 1.3% is assuming there is no currency fluctuation.

[hyenergix]

With so much printing, keeping cash is really dangerous now. Just buy insurance and keep some for buffer. What to do with the $? Invest into properties loh. MRT network that requires $bil investment will be pumped into certain areas. These areas property prices will inflate. Cheers.

[teddybear]

Why ICICI?

Hi,
Need advice from some kind souls..
Was thinking of putting some $ into icici bank. Is it safe ?
Is it the right time to put AUD time deposit now? Or wat currencies would u advise?
Thanks thanks....

[buttercarp]

Why ICICI?

I think their rates are better than local banks.

http://www.icicibank.com.sg/pb_fd.htm

[teddybear]

Thanks.
Looks like only A$ has reasonable rates, the rest are all too low.
Unless one has use for A$ or going to keep the money in A$ more permanently (or over very long period of time), converting S$ to A$ and then back to S$ again in a short time is always a losing proposition.

I think their rates are better than local banks.

http://www.icicibank.com.sg/pb_fd.htm

[roly8]

With so much printing, keeping cash is really dangerous now. Just buy insurance and keep some for buffer. What to do with the $? Invest into properties loh. MRT network that requires $bil investment will be pumped into certain areas. These areas property prices will inflate. Cheers.

need some cash to feed ourselves ,right?

100-200k can't buy any good properties nowadays

[proud owner]

need some cash to feed ourselves ,right?

100-200k can't buy any good properties nowadays

bro Roly8

your mail box is full

i cant reply to your pm

[hyenergix]

need some cash to feed ourselves ,right?

100-200k can't buy any good properties nowadays

I rem you have S$300k spare cash.

You can probably use S$100k for downpayments for *two* FH landed properties (RM$600k x 2) in Iskandar and wait for capital appreciation or rent out in future. Then spend S$100k for a weekend car.

You can keep S$100k for contingency.

[Rosy]

I rem you have S$300k spare cash.

You can probably use S$100k for downpayments for *two* FH landed properties (RM$600k x 2) in Iskandar and wait for capital appreciation or rent out in future. Then spend S$100k for a weekend car.

You can keep S$100k for contingency.

Is it wise to take mortgage loan? I was quoted about 4.5%

[roly8]

bro Roly8

your mail box is full

i cant reply to your pm

oops. all good now.

I rem you have S$300k spare cash.

You can probably use S$100k for downpayments for *two* FH landed properties (RM$600k x 2) in Iskandar and wait for capital appreciation or rent out in future. Then spend S$100k for a weekend car.

You can keep S$100k for contingency.

duno leh. me read laguna post about iskandar investment.. he does make some sense.

anyway, me is a very conservative player ..always do many many homework & research first.. that also mean got chances of MTB also...

[dinky]

I think alll deposits up to $50K is covered under insurance so it should be safe.
Foreign FD is a bit tricky as it is subjected to currency fluctuation.
Why not singapore FD if you are thinking of FD.
The foreign banks in general should give slightly better FD rates than local banks.

For foreign currency FD.....

You have to see what is the spread.
The difference between the buy and sell prices is known as the spread.

Eg..... ABC is an imaginary currency.
A bank is selling ABC $1 for SGD $1.35

but is buying ABC $1 at SGD $1.30

So upfront the depositer loses 1.85%.
And if he redeems back his SGD, he loses 3.7%.

So 3.7% is the spread.

So if the bank is offering 5% interest on ABC FD, means you actually you get 5-3.7= 1.3%.

This 1.3% is assuming there is no currency fluctuation.

Tks so much...
I was thinking of putting long term min 2yrs or more...& this bank seems to offer attractive rates.
Is this a way to hedge against a home loan since foreign currency FD is higher?
Thans thanks

[dinky]

Why ICICI?

find their rates r better than other banks. But need advice from gurus before i commit lo...

[buttercarp]

Tks so much...
I was thinking of putting long term min 2yrs or more...& this bank seems to offer attractive rates.
Is this a way to hedge against a home loan since foreign currency FD is higher?
Thans thanks

I don't think foreign currency FD is a good hedge against home loan!
In the end the interest you get is probably the same as singapore dollar FD or even less if SGD strengthens.
Foreign currency FD is good if you don't intend to convert back to SGD and is going to use the money in the country which you have converted the SGD to.

[Shanhz]

I rem you have S$300k spare cash.

You can probably use S$100k for downpayments for *two* FH landed properties (RM$600k x 2) in Iskandar and wait for capital appreciation or rent out in future. Then spend S$100k for a weekend car.

You can keep S$100k for contingency.

S$100k for weekend car? funny advise. if really need car, get a 6 yr old car good enuff. no need 100k

[hyenergix]

S$100k for weekend car? funny advise. if really need car, get a 6 yr old car good enuff. no need 100k

I drive my car > 100 km per hr often for long dist. Reliability is v impt. Better not play w 2nd hand cars tt might have prev involved in accident.

[richwang]

I think their rates are better than local banks.

http://www.icicibank.com.sg/pb_fd.htm

I wouldn't want to take the additional risk to put my money there.
The reward is not worth it.

OCBC (and other local banks) are rated AA-,
but ICICI is rated BBB-

http://www.icicibank.com/aboutus/credit-rating.html
http://www.ocbc.com/group/investors/credit-ratings.html

Thanks,
Richard

[buttercarp]

I wouldn't want to take the additional risk to put my money there.
The reward is not worth it.

OCBC (and other local banks) are rated AA-,
but ICICI is rated BBB-

http://www.icicibank.com/aboutus/credit-rating.html
http://www.ocbc.com/group/investors/credit-ratings.html

Thanks,
Richard

Me too.
What about BOC?
What is the rating... and where to check for rating, please?

[princess_morbucks]

http://business.asiaone.com/news/spo...nches/page/0/1

Reuters
Saturday, Sep 14, 2013
"MAS is analysing the credit exposures taken by banks and is ensuring that we steer clear from lending to Indian firms they are hearing adverse reports about," said a top executive at an Indian state bank, declining to be identified.

Singapore is a significant offshore centre for Indian finance and is the second-largest source of foreign investment flows into India, with 9.2 per cent of its population of Indian origin.

Indian banks have in recent years been building up their presence in Singapore, Dubai and Hong Kong in order to serve large populations of non-resident Indians as well as Indian companies looking to raise funds offshore.

"They (regulators) perceive that risks in Indian banks' operations are higher," said another top executive at an Indian bank with operations in Singapore.

Banking sources said the intensity of MAS audits varied based on an individual bank's circumstances. Some Indian banks with operations in Singapore said they had not seen any stepped-up oversight from the regulator there.

"This is a normal inspection and MAS does it once in two years. They have covered our bank and have not made any observations. There were no concerns regarding NPAs or lending to any companies," said Vijaylakshmi Iyer, chairwoman and managing director of Bank of India.

- See more at: http://business.asiaone.com/news/spo....o50vtaWF.dpuf