Consider option of foreign currency fixed deposits

Foreign currency fixed deposits have become hugely popular here, especially in light of the low returns on offer locally and the growing need to have funds other than in Singdollars.
Foreign currency fixed deposits have become hugely popular here, especially in light of the low returns on offer locally and the growing need to have funds other than in Singdollars.PHOTO: EPA-EFE
Investors who exchanged Singdollars for United States dollars a year ago would be better off reverting the greenbacks to Singdollars due to the US currency’s recent rally.
Investors who exchanged Singdollars for United States dollars a year ago would be better off reverting the greenbacks to Singdollars due to the US currency’s recent rally. PHOTO: EPA-EFE

Such instruments offer prospect of higher interest rates and forex appreciation, but be aware of risks

If you are looking at stashing away some cash in, say, Australian dollars for whatever reason - travel, university or higher interest rates - then a fuss-free instrument known as a foreign currency fixed deposit should do the job.

These deposits have become hugely popular here, especially in light of the low returns on offer locally and the growing need to have funds other than in Singdollars.

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A version of this article appeared in the print edition of The Sunday Times on August 26, 2018, with the headline 'Consider option of foreign currency fixed deposits'. Print Edition | Subscribe