High interest rates on NZ/AUS savings accounts

[soi6 0]

Hi Guys,

 

I just was looking at HSBC in NZ and Australia and saw savings accounts rates of 8.5%! Here in the US we have a low 3.5% rate (best I could find).

 

A question I have is if anyone knows how a foreigner might open an account and get these high rates, yes I realize one would invest AUS or NZ currency and get interest in them.

 

Also, does anyone know the tax implications of a US citizen doing this?

 

 

 

Reading Stickman he says that he gets 9% interest on NZ savings... And he says that if a foreigner has an account they lose 1% of the interest. Which is still a good deal, now with 15% taxes on earnings from savings one would have.. 8% *.85 = 6.8% interest, which is 3.3% higher than any in the USA.

 

 

Thanks/Cheers!

 

Shane

Edited September 3, 2008 by soi6

[Alfred 26]

Open an account with an Aus/NZ bank and yes you will get those rates.

 

There is a catch and i can only quote this for Australia, unless you have an Australian Tax file number (TFN), the bank will deduct 48% of your interest and pay it to the Australian tax office, if you have an TFN they wont, but i think to get a TFN you have to be an Australian citizen or a permanent/temporary resident, if you then have a TFN you will have to do an Australian tax return.

Edited September 3, 2008 by Alfred

[m_right 0]

If you buy stocks you can buy the FXA etf which invests in the Australian dollar. Interest is paid as dividends.

[BigusDicus 9,883]

Keep in mind the US $ is gaining against most currencies at the moment.

 

A US dollars worth of Aussie dollars might be worth 80 cents in a few months.

[soi6 0]

Okay, thanks guys.. Does anyone know though if a non-New Zealander can benefit from the interest in a NZ or (non-Australian) in an Australian account..

 

Realizing the NZ/AUS $ are at all time highs, and it is risky..

 

Stickman posts about how he does this...

 

http://www.stickmanweekly.com/StickMarkII/...doInBangkok.htm

http://www.stickmanweekly.com/Weekly2006/weekly284.htm

 

he's from NZ though and uses NZ bank accounts, losing 10% of the interest because he doesn't live as a resident in NZ.

[bronto 0]

I emailed Stickman on the subject of non -kiwis opening such an account.

He has replied saying he doesnt think it would be a problem, but you would have to go to NZ to open the account.

 

Long way to go for me just to get an extra % or so, but maybe worth it for others.

[js007 795]

Even if you get the rates, what do you do if the New Zealand currency weakens by the same amount or more?

 

You could end up losing money.

 

J

[Dr Mick 111]

HSBC

 

My UK branch told me they would set me up a account in Thailand before moving here

 

Im still waiting ,2 weeks on ,

 

Send them E mail and reply sent back today

 

was sorry we sent old type form to BKK so we send you new form which you can fill in and send

to BKK

[jacko 8,822]

Open one yourself when you get here. Manage your UK accounts over the internet. They employ halfwits in banks in the UK... and anything outside the normal sphere is poorly handled.