Did you know that you can place foreign currency time deposits in addition to RM time deposits?
Foreign Currency Fixed Deposit (FCD) is a type of time deposit account that allows you to deposit foreign currency. You can convert your money into foreign currency and deposit it in the fixed deposit. This is not only to preserve the value of your money, but also to earn interest on your time deposit.
However, it is important to note that you will lose money if the value of the foreign currency you deposit depreciates during the time you deposit it. There will also be exchange rate differences when switching foreign currencies, so you will definitely lose money by switching exchange rates frequently in the short term.
All major banks in China provide foreign currency time deposit services. Hong Kong Dollar, Singapore Dollar, Canadian Dollar and Chinese Renminbi.
There is usually a minimum deposit amount for foreign currency time deposits, such as US$1,000, AUD1,000, GBP1,000, RMB10,000, S$1,000, etc. You can choose to deposit for 1 month to 12 months. Interest on foreign currency time deposits will be calculated on a daily basis, but interest will be paid in a lump sum at the end of the term.
According to CIMB’s website as of November 16, 2022, you can earn 3.90% interest for a 1-month USD deposit, 5.10% for a 3-month deposit, 5.20% for a 6-month deposit and 5.30% for a 12-month deposit.
A 1-month SGD time deposit will earn 2.85%p.a., a 3-month deposit will earn 3.95%p.a., a 6-month deposit will earn 4.20%p.a., and a 12-month deposit will earn 4.35%p.a.
(No investment advice, information is purely for sharing)
