Foreign Currency On Deposit

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Tuttlinghorn said:
it seems odd to me that Investec are offering different deposit rates on different currencies ... is it connected with prevailing dep rates in Australia ?
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This is totally normal. Deposit rates are primarily linked to base rates in that currency zone. The ECB base rate is 1%, the Australian base rate is much higher.


butterscotch said:
Ciaran,

Looking at the Investec.ie website, I see that they mention "In July 2002 Investec became the first South African group to list in London and Johannesburg by implementing a Dual Listed Company's Structure"
Which of the companies is the one that operates in Ireland?
Secondly, If you go to the credit ratings on the same website, what interpretation should I take from this regarding risk on an AUD deposit account for 12 or 24 months?
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Investec in Ireland has the same parent as Investec in London, which is Investec in South Africa.

If your deposit is under 100,000 EUR equivalent, then you are fully protected by the FSA/UK government.
 
Ciaran,

Can you clarify exactly what the FSA guarantee means (given that you have to apply for compensation in case of a default). Is it a situation that they guarantee "up to" £100k per depositor, or will you be absolutely guaranteed that you will receive every penny that you have invested, up to the limit. Is there a chance, once a default happens, that the UK Government will look after the UK depositors first, then share out whatever is left to deposits offshore?
 
It is not 100,000 GBP, it is 100,000 EUR or local equivalent.

There are currently no provisions to differentiate between Irish deposit holders and UK deposit holders. The FSA have to compensate both, if the bank is FSA regulated.

An Irish sovereign default might throw some rules out the window, but it would be hard to see how the UK government would not stand by their 100,000 EUR deposit guarantee with FSA banks. There are not many banks in Ireland that are covered by the FSA guarantee. Separately, obviously, an Irish sovereign default might render the Irish regulated banks unable to compensate deposit holders.
 
As Investec are operating in Ireland, do they automatically deduct the DIRT tax for you on foreign currency deposits, or just on their euro deposit accounts?
 
gravitygirl said:
As Investec are operating in Ireland, do they automatically deduct the DIRT tax for you on foreign currency deposits, or just on their euro deposit accounts?
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I contacted Investec.ie and just to confirm they do deduct DIRT on foreign currency accounts, so individuals do not have to return it themselves to the revenue.
 
what about canadian dollars

i think the australian dollar has risen too much, i cannot see that being sustained, obviously the high interest rate on offer in australia has pushed up its value along with the mining boom, any hiccup in china which is now being widely predicted will have a very big impact on australia considering its asia centric economy now. However i think a much safer bet is canada, its currency has risen against euro but not to the same extent as australia, it is much more diversified than australia, and has been wary of allowing its currency to appreciate too much in order to preserve its exports to the US and europe, i think canada is much more aligned to the US and europe aswell as asia. Its currency will more than likely keep appreciating slowly due to its strengths.
 
I agree. Australian Dollar is not a good bet at the moment, as it's too strong against the Euro. Anybody know of any Canadian Dollar deposit accounts giving a decent rate of interest?
 
joe sod said:
i think the australian dollar has risen too much, i cannot see that being sustained, obviously the high interest rate on offer in australia has pushed up its value along with the mining boom, any hiccup in china which is now being widely predicted will have a very big impact on australia considering its asia centric economy now. However i think a much safer bet is canada, its currency has risen against euro but not to the same extent as australia, it is much more diversified than australia, and has been wary of allowing its currency to appreciate too much in order to preserve its exports to the US and europe, i think canada is much more aligned to the US and europe aswell as asia. Its currency will more than likely keep appreciating slowly due to its strengths.
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excellent post , traditionally the aussie dollar is not that strong , its current rise is unprecedented and with talk of a slowing china , it could very well have peaked

as for the canadian dollar , rising oil prices will help the canadian economy and the U.S ( its biggest trading partner ) seems to be recovering well to boot

another safe bet is likely to be the swiss franc , is that currency ever down
 
Same question then. Anybody know of good deposit rates for swiss francs
 
Not a good CHF rate but PTSB are one of the few retail CHF deposit options in Ireland:

[broken link removed]
 
interest rates in canada are very low about 1.5%, this is a deliberate policy to try and prevent currency appreciation especially against the US dollar, however it is still a safe bet because it is appreciating slowly, also the canadians will increase intersest rates if the economy grows too fast or if the US dollar appreciates, both of which are likely, in australia with already high interest rates and a hiccup in china likely, interest rates will fall along with the aussie dollar. Australia is now very highly dependant on asian growth
 
Have decided against AUD deposit, as it is too strong against the Euro at present. Anybody know where I could open a Canadian Dollar deposit account with a reasonable interest rate. Must be an account that I can manage online and preferably outside Ireland (maybe in Europe somewhere)
 
I came to the same conslusion. I emailed some Canadian banks and its seems a no no. They dont seem to do non resident accounts.

I asked somone in investec, if you have an account in another currency with them is it safe from any interference from the authorities here, should the Euro breakup?.
I asked this as their foreign currency accounts hold the money IN Ireland and come under regulation here with DIRT deducted.
They couldn't give absolute assurances and referred me to ask the government about current legislation. I thought this unusual as you would think their own solicitors would have a fairly definite take of the legislation thats currently in place. Thats a concern as that why I am doing it in the first place.
If anyone is in the know on this subject pray tell..
 
butterscotch
Canadian rates are very low. The banks in Canada are lower than Investec.
You dont look at Canada for the return.
 
butterscotch said:
Have decided against AUD deposit, as it is too strong against the Euro at present. Anybody know where I could open a Canadian Dollar deposit account with a reasonable interest rate. Must be an account that I can manage online and preferably outside Ireland (maybe in Europe somewhere)
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Ring HSBC, I am told their AUD rates are okay.

[broken link removed]
 
The Investec rates on AUD are actually great. My worry is twofold.
1) the credit rating of the Investec.
2) the currency exchange rates. EUR has lost in the region of 13%-15% against CAD and therefore transferring back to EUR would incur big FX losses.

My reason for wanting to get into another currency is simply to hedge against a potential devaluation of a PIIGS Euro (should it become 2-tier Euro). I'm not necessarily looking for huge returns on deposit interest (although that would be a bonus). Internet banking would be a prerequisite for me.

I share Troy's concerns. If the government at any point decides to "freeze" irish deposits, does this include a)deposits in Ireland with non-Irish banks? b) deposits in Ireland in currencies other than Euros. Remember, the freeze decision will come out of the blue, with no advance warning, as the intention will be to catch people before they can withdraw.

Given my comments in the first paragraph, has anybody any advice?
 
I agree with the points re that AUD that it is too strong vs the Euro at the moment - the same applies for the CHF. However I have also looked at the CAD vs the Euro since 2002 and it too is much stronger against the euro today than it has typically been over that eight year period. I am going to put my monies into USD as I believe that this will be the "haven currency" that people will choose to buy when the Euro comes under threat notwithstanding the weaknesses in the US economy. Also having looked at its history the current rate vs the euro is pretty good.
 
Art said:
I agree with the points re that AUD that it is too strong vs the Euro at the moment - the same applies for the CHF. However I have also looked at the CAD vs the Euro since 2002 and it too is much stronger against the euro today than it has typically been over that eight year period. I am going to put my monies into USD as I believe that this will be the "haven currency" that people will choose to buy when the Euro comes under threat notwithstanding the weaknesses in the US economy. Also having looked at its history the current rate vs the euro is pretty good.
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i have 50 k in US dollars , i gained big time in the three or four weeks coming up to christmans but most of l my gains have been wiped out since xmas as the euro has rallied against the dollar , now would be a good time to get into dollars as the run on portugal hasnt yet appeared

the dollar however is very volatile and while it will most likely rally when the next european country gets attacked by the market , with regular money printing by the fed , its long term outlook is weak weak weak , the swiss franc is a bomb proof currency , while deposit interest is zero , it really is a fail safe currency , australian and canadian dollar has its good and bad time but the franc is solid as a rock , only downside is buying into the thing
 
farmerette said:
i have 50 k in US dollars , i gained big time in the three or four weeks coming up to christmans but most of l my gains have been wiped out since xmas as the euro has rallied against the dollar , now would be a good time to get into dollars as the run on portugal hasnt yet appeared

the dollar however is very volatile and while it will most likely rally when the next european country gets attacked by the market , with regular money printing by the fed , its long term outlook is weak weak weak , the swiss franc is a bomb proof currency , while deposit interest is zero , it really is a fail safe currency , australian and canadian dollar has its good and bad time but the franc is solid as a rock , only downside is buying into the thing
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Hi Farmerette,
What do you mean by the downside of buying into CHF - do you mean the FX costs?
 
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