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Which bank should I invest HKD 1,000,000 in Time Deposit

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  1. #1

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    Which bank should I invest HKD 1,000,000 in Time Deposit

    Hello, I am new to this forum.
    I have $1,000,000 HKD at the HSBC in Hong Kong and I want to open the multi currecy or dual currency saving account at the different bank.

    I heard that NZD is stronger than AUD now so I am thinking about opening the HKD and NZD (and JPN ?)saving account and open NZD time deposit account(12 month). Whatever the amount I made a profit off the interest rate, I want to move those fund back to the saving (either in HKD or JPN).

    Do you suggest that I invest HKD in NZD or something else ?
    Do you know any institution that gives better currecy conversion rate (e.g. NJZ to JPN or HKD) ?
    I use OANDA (NY.USA) for currency conversion between USD and JPN and they have the best conversion rate however they don't offer NDZ or HKD.

    Thanks,


  2. #2

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    Quote Originally Posted by Mutsyworld:
    I heard that NZD is stronger than AUD now so I am thinking about opening the HKD and NZD (and JPN ?)saving account and open NZD time deposit account(12 month). Whatever the amount I made a profit off the interest rate, I want to move those fund back to the saving (either in HKD or JPN).

    Thanks,
    based on this sentence, I do recommend you not to touch FX. Remember, even a corporate like Citic Pac can lose billions on their positions...

    relative strength of currencies change like every other week...
    seanbcain likes this.

  3. #3

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    I strongly second the above sentiment. Mutsy, if you are having to ask these questions, you should not be thinking of playing with foreign exchange.


  4. #4

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    And if you were, a time deposit of 12 months is WAY too long. You need to swap out of NZD once it improves in value (??if it improves?!) or you will lose any benefit again.

    I might do something similar if I had 1mil in HKD (I don't - mine stayed in NZD - ouch) because I find it hard to believe that the NZD can fall much further and you can still get 5%+ on interest rates with it - but, as others have said, it IS just as much of a gamble as some stocks.

    I lost about as much holding NZD in a bank account as I did on shares in the past couple of months .... so don't think that just because it's a time deposit that it's safe!


  5. #5

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    I work in Wealth Management and my company has a promotion right now, 5.75% p.a. for HKD time deposit. To be eligible you need to start a regular savings plan. Let me know if you are interested and I can give you more details.

    If you want to play with currencies, know that there has been extreme volatility for the last few months. The only currencies showing strength are the yen and the USD. It's difficult to tell where the future trend will go, but the resources rich currencies like CAD, AUD, NZD, will most likely show more weakness or stay at their weak levels. Commodity prices won't get better any time soon.

    Last edited by siuQ; 18-11-2008 at 05:06 PM.

  6. #6

    Your company or your bank? I haven't heard of 5.75% for a pure bank time deposit. Even when Libor rates shot up in October, the best rate was around 5% for a time deposit.


  7. #7

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    It's not a retail bank, just a financial institution. We're the 2nd largest financial institution in the world now. I don't think it is appropriate to advertise on here though, but I just wanted to let you know the rates we have.

    The 5.75% pa is a time deposit that it tied to the savings account, that's why the rate is much higher than your standard pure bank time deposit. Also, it's a promotion that will last only till the end of this month. It might start up again some time next year, but I'm not sure.

    Last edited by siuQ; 19-11-2008 at 12:33 AM.

  8. #8

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    well, if you can make 3% p.a. from the client for the next 5 years, what's the cost of giving a 5.75% fixed deposit for 1 year right! 8-)

    btw hk is the only place that allows that kind of fund based saving plan... check out some of the comments goggled u will be amazed..


  9. #9

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    Thanks for the useful information.
    I am very new to the investment and have a little knowledge of it.
    So please bare with me.

    From what I've read some replies, It seems I should not go with 12 month time deposit. I simply thought the longer the money stays, the more interest rate is up/stable.
    I guess I was wrong and stupid.

    If I put the fund in 1 or 3 month time deposit, what do I do next ?
    do I move the fund to other account (saving/time deposit in different currencies)?

    I am simply looking for the best deal with the lower risk.



    Please advise.


  10. #10

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    Good deals with low risk are pretty thin on the ground right now. I'm impressed you have manage to accumulate that much money without having a knowledge of these things. But anyway, for that amount and in these difficult times you are probably better off with a mixed strategy and only a good financial advisor can find you that. Probably a bond fund or something is closest to what you are looking for. I would go to the bank and find a wealth advisor - probably - go to a couple and speak to a couple and see what they say and how you feel about each of them before deciding what to do.


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