Investec( South African crowd)- AUD accounts.

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horusd

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I heard Eddie Hobbs recommending Australian dollar accounts recently as the AUD is a resource backed currency (given Australia's huge natural resources - primarily in mining). I am reluctant to invest in US dollar accounts due to the US treasury's habit of printing more money which imo can only ultimately lead to devaluation. Hobbs suggested some LUX based AUD account but it all sounded very complicated. I checked with investec yesterday about opening an online AUD account and the process seems quite simple ( + the interest rates seem attractive - better than transferring to a German bank @2 % for example ). The only fly in the ointment seems to be FX rate from Euro to AUD - 1.2822 as opposed to 1.2954 from currency.ie. Below is the txt of email from them if it's of any use to other posters here. Would be interested to hear of other people's experiences with opening these accounts or any other comments before I make the plunge.

Thanks for your email.
You will need to open an account and log onto www.investeconline.ie.
Click on "open a new account now" and specify the account you wish to open. I presume you are lodging in euro, therefore state you are opening a euro/ call account and follow through the screens.
The system will ask you to print out the form at the end, please sign it and send in alongside documentation and funds (if you are lodging funds by cheque/draft). The documents are usually passport, 2 x original bills dated within 3 months and copy of a document showing PPS number.
You can send a cheque in with the documents, or else wait until we confirm that the account is set up and you can transfer funds by EFT.
We will then need to confirm the rate of converting EUR to AUD, you will need to confirm that you are happy to proceed with this rate. You can then let us know what term deposit to lodge your funds to.
I have enclosed today's rates of conversion for both EUR/AUD.
EUR/AUD1.2822
Please note that these rates are indicative for today only and are for when you are selling euro and buying AUD. We will only be able to confirm the rate of conversion when your funds have been received/ cleared and ready for processing.
Furthermore, enclosed our current AUD rates. These are subject to change also an are indicative, but may give you an idea of what we are offering.
Australian DollarAUDAER Rate Per Term
1 Month Notice4.50%4.59%0.38%
6 Month Fixed 5.10%5.17%2.55%
12 Month Fixed5.75%5.75%5.75%
I have enclosed below link also:
http://www.investec.ie/#home/deposits_and_banking_services/for_ccy_dep.html
Please let us know if you have any further questions
 
I was thinking of opening an account with Investec but as you say the exchange rates are poor. I have opened an account with Transfermate (Currency,ie) and my plan was to get them to do the currency exchange and then transfer it to Investec. Hope this will work.
 

if you consider that exchange rate poor , you should see what hsbc do , thats a very favourable exchange rate , the difference is less than two percent

in november , i transfered money from euro to a sterling account with hsbc in the north , on the day , the market was offering 85 pence to the euro , bank of ireland were offering 83 pence to the euro , guess what hsbc gave me , 79 pence sterling
 
Wouldn't the poor exchange rate be quickly offset by the better interest rate of the Investec AUD account?
 
Thanks all. I think I will go with Investec's FX rate as I'm not depositing a huge sum, it hardly seems worth the hassle of looking around looking for the best FX rate.
 
When I used them you paid the 15€ for same day transfer only. They were the best rate on that day. You can haggle on the rate also, but you can haggle with all of them.
 
Hmmm, didn't know this okeydokey. I wonder if they are covered under deposit guarantee scheme even tho investments would be in foreign currency? I imagine they are of they are licenced to operate here.
 
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