Offshore Savings And Investment Banks

[bigmick 840]

Can anyone suggest a bank (preferably in Asia) that will give a decent rate of interest in the current financial climate. I am looking to save money outside of Thailand as it does not look so good with the Thai banks. I have looked at HSBC offshore but their rates seem very poor.

 

Serious and sensible replies only - Thanks

[soi6 0]

HSBC will allow you to open bank accounts in Australia, the govt backs up to $250k in a given account. 10% of your interest is taken by the Australian govt as a tax if you are a nonresident. Interest rates run about 6%..

[Grandpollo 366]

Read up on Interest Rate Parity, the financial term arbitrage, and how interest rates are related in part forward exchange rates. If you can , safety aside, place funds in a foreign bank at 6% while your local bank pays, say 2%, that sounds like free money right?

 

However, the expectation is the higher rate, e.g. 6% currency will devalue by 4% over the period of time which is why it is 6% to begin with. If this was not true then banks would place billions of $ in banks paying 6% on short term funds that they are only paying 1/2 - 2% on. Earning risk-free 4% for doing nothing.

 

Example: You invest one US$, at a 1 year interest rate in AUS dollars at their rate of 6%. This is compared to, say, 2% in US for a year. For ease of the calculations, the current spot US/AUS rate is $1:$1.

 

The result of each deposit is this: in a year you have 1.06 AUS dollars ($1 X 1.06 representing the interest) and on the US deposit only US$1.02 , but the spot rate a year later is now lower: $0.963 US = $1 AUD. The AUD has declined (depreciated) by the difference (1.02 US in one year vs. 1.06 AUD in one year).

 

If the reason is concern over the solvency of Thai banks then keep funds in a location with deposit insurance on local funds deposits. Withholding tax for non-residents should be less of a concern than safety of your funds.

Edited December 26, 2011 by ricktoronto

[joekicker 53]

If the reason is concern over the solvency of Thai banks then keep funds in a location with deposit insurance on local funds deposits.

 

There's no concern over the solvency of Thai banks, but there's no return to speak of. Three per cent is a fabulous, dream rate, probably impossible. And borrowing rates are going back down again for a while, too, so savings-interest sure isn't going anywhere good.

 

.

[davebuczek 21]

Can anyone suggest a bank (preferably in Asia) that will give a decent rate of interest in the current financial climate. I am looking to save money outside of Thailand as it does not look so good with the Thai banks. I have looked at HSBC offshore but their rates seem very poor.

 

Serious and sensible replies only - Thanks

 

If you want to earn very high returns, you should look at emerging markets (10+%) and many countries do not tax interest on deposits. Sure there is higher risk, but you can mitigate this by spreading the risk over different countries. That way if you lose say 1 account, you still are positive for the year. You also mitigate your risk by investing in one of the country's largest and most stable banks. For example the International Bank of Azerbaijan in Baku. I live in an emerging market and many bank's/financial institutions are my clients. If anyone wants more detailed info, you can PM me. Happy to assist.

[lovedog100 1,372]

I can't tell you where to go, but I can tell you where NOT to go. Cayman National Bank.

[Grandpollo 366]

I can't tell you where to go, but I can tell you where NOT to go. Cayman National Bank.

 

Here is another: International Bank of Azerbaijan in Baku

[js007 795]

Can anyone suggest a bank (preferably in Asia) that will give a decent rate of interest in the current financial climate. I am looking to save money outside of Thailand as it does not look so good with the Thai banks. I have looked at HSBC offshore but their rates seem very poor.

 

Serious and sensible replies only - Thanks

 

There's no free lunch. If you get a "decent" rate of return, you have risk. If I were you, I'd be less worried about the rate of return and more worried about the currency value. A 6% rate of return won't be so good if the currency drops 15%.

[bigmick 840]

Here is another: International Bank of Azerbaijan in Baku

 

Why do you slate this bank, have you had any dealings with this to qualify you to slag it off ??

[bigmick 840]

There's no free lunch. If you get a "decent" rate of return, you have risk. If I were you, I'd be less worried about the rate of return and more worried about the currency value. A 6% rate of return won't be so good if the currency drops 15%.

 

Thanks for that, what do you think will happen to the US Dollar over the next few years

[bigmick 840]

If you want to earn very high returns, you should look at emerging markets (10+%) and many countries do not tax interest on deposits. Sure there is higher risk, but you can mitigate this by spreading the risk over different countries. That way if you lose say 1 account, you still are positive for the year. You also mitigate your risk by investing in one of the country's largest and most stable banks. For example the International Bank of Azerbaijan in Baku. I live in an emerging market and many bank's/financial institutions are my clients. If anyone wants more detailed info, you can PM me. Happy to assist.

 

Have sent you a PM

[jacko 8,822]

Can anyone suggest a bank (preferably in Asia) that will give a decent rate of interest in the current financial climate. I am looking to save money outside of Thailand as it does not look so good with the Thai banks. I have looked at HSBC offshore but their rates seem very poor.

 

Serious and sensible replies only - Thanks

Why not the Thai banks, they are offering some reasonable fixed term deposits?

The offshore banks have given up offering good interest rates, they don't need the money, they can borrow it for near zero rates themselves from the central banks!

 

Try this

 

Or how about saving into say a currency trading account.... PM me.

[js007 795]

Thanks for that, what do you think will happen to the US Dollar over the next few years

 

I have no idea. By most accounts, the US dollar should have already crashed. And yet it is still the world's reserve currency. Recently, it's been on a "flight to safety" run. I guess it's all relative. What's the alternative? The Euro? That's in trouble. What's left? The Chinese Yuan? Hardly. That currency still doesn't float. Perhaps some basket of commodities or "Special Drawing Rights"? Personally, I hope we all muddle through over the next ten years. I wouldn't be surprised to see the dollar at 25 baht, nor would I be surprised to see the dollar at 38 baht.

[wacmedia 277]

I the US dollar should have already crashed. And yet it is still the world's reserve currency.

 

Hi,

 

The agreement between China and Japan is significant IMO.

 

http://www.bloomberg.com/news/2011-12-29/china-japan-currency-deal-points-way-to-a-new-world-monetary-order-view.html

 

China-Japan Currency Deal Points Way to New Monetary Order

 

The agreement announced between China and Japan to strengthen financial ties and promote yuan-yen trade is a small, but notable, step toward a new global economy. Its immediate practical significance is limited, yet the deal signals that a deeper transformation is under way -- and one that the world should welcome.

The plan was a surprise: It marks a warming of relations that had been chilly of late. The accord still lacks a timetable for implementation, but once in force it will let Chinese and Japanese trading companies switch between yuan and yen without converting to dollars first. This will encourage commerce by reducing currency risk and trading costs.

[bigmick 840]

Hi,

 

The agreement between China and Japan is significant IMO.

 

http://www.bloomberg...order-view.html

 

China-Japan Currency Deal Points Way to New Monetary Order

 

The agreement announced between China and Japan to strengthen financial ties and promote yuan-yen trade is a small, but notable, step toward a new global economy. Its immediate practical significance is limited, yet the deal signals that a deeper transformation is under way -- and one that the world should welcome.

The plan was a surprise: It marks a warming of relations that had been chilly of late. The accord still lacks a timetable for implementation, but once in force it will let Chinese and Japanese trading companies switch between yuan and yen without converting to dollars first. This will encourage commerce by reducing currency risk and trading costs.

 

What will this mean for the US Dollar and the US Dollar against the Thai baht

[jacko 8,822]

You can only go by the numbers....

Dollar strengthens against Thai baht yesterday.

Also against the AUD.... my attempt to relate with another currency that is out of the group but strong.

But I think the underlying improvement in the USA labour market and factory output helped the old greenback.

The dollar wants to rise.....

[wacmedia 277]

What will this mean for the US Dollar and the US Dollar against the Thai baht

 

Hi,

 

Well it lessens demands for dollars as the Chinese and Japanese have no reason to buy dollars in this scenario. I'd never speculate in currencies as there as too many variables and unknowns. As js007 said earlier you might get a great rate but the currency may tank.

[wacmedia 277]

But I think the underlying improvement in the USA labour market and factory output helped the old greenback.

The dollar wants to rise.....

 

Hi,

 

The Japanese and Chinese have reached an agreement which will mean they depend less on $ and €. I'd rather have some of the BGs best friend than either of those fiats.

 

http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html

 

China is the world’s second-largest economy while Japan is the third largest, and the currency agreement is part of a move away from using dollars. Chinese officials have said recently they would like to broaden the global use of the renminbi, also known as the yuan, and want to see more countries move away from relying on dollars as the worldwide currency.

They hold the world’s largest foreign-currency reserves — China has about $3.2 trillion, while Japan holds $1.3 trillion — and any moves to reconstitute the makeup of those holdings could change the global currency map.

“Chinese officials have made it clear that they believe the international economy is too heavily dominated by the dollar,” said Charles A. Kupchan, a professor of international affairs at Georgetown University and a senior fellow at the Council on Foreign Relations. “They believe, as part of China’s rise, that the international system should move to a more balanced structure.”

[davebuczek 21]

Here is another: International Bank of Azerbaijan in Baku

 

Why not?