I’ve been considering Everbank.com, thanks to Frugal @ My 1st Million at 33. It’s also because of a comment I received from Matt, asking if I’m worried about the value of the US dollar, and to that I replied:
Matt, Most of my cash is in savings and CDs. Yes, I do have worries. It’s something I’ve been considering…I’m not quite sure what to do though to combat any possible severe decline in US dollar values. Do you have any recommendations? I may post about this later.
So it’s later, and this is my post. There are some really attactive foreign CDs out there…I’m thinking of opening a “World Currency CD” account. Their rates are VERY attractive, but I have NO idea what kind of tax implications and other items to consider before investing in these CDs. For example, take a look at their current rates:
|
WorldCurrency CD Yields1
Rates as of 9/8/2006 12:00:00 AM |
||||||||
| Most Single Currencies – Minimum Investment $10,000 ($US) | ||||||||
| APY2 | Interest Rate |
APY2 | Interest Rate |
APY2 | Interest Rate |
APY2 | Interest Rate |
|
| Australian dollar | 4.68% | 4.60% | 4.65% | 4.60% | 4.63% | 4.60% | 4.88% | 4.88% |
| British pound | 3.50% | 3.45% | 3.48% | 3.45% | 3.47% | 3.45% | 3.70% | 3.70% |
| Canadian dollar | 2.78% | 2.75% | 2.77% | 2.75% | 2.76% | 2.75% | 3.00% | 3.00% |
| Danish krone | na% | na% | na% | na% | na% | na% | na% | na% |
| EMU euro | 1.76% | 1.75% | 1.86% | 1.85% | 2.01% | 2.00% | 2.25% | 2.25% |
| Hong Kong dollar | 2.83% | 2.80% | 2.87% | 2.85% | na | na | na | na |
| Icelandic krona | 10.92% | 10.50% | na | na | na | na | na | na |
| Indian rupee | 3.03% | 3.00% | na | na | na | na | na | na |
| Japanese yen | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mexican peso | 4.84% | 4.75% | 4.81% | 4.75% | na | na | na | na |
| New Zealand dollar | 6.14% | 6.00% | 6.09% | 6.00% | 6.05% | 6.00% | 6.00% | 6.00% |
| Norwegian krone | 1.51% | 1.50% | 1.61% | 1.60% | 2.01% | 2.00% | 2.25% | 2.25% |
| South African rand | 6.92% | 6.75% | 6.92% | 6.80% | na | na | na | na |
| Swedish krona | 1.00% | 1.00% | 1.12% | 1.12% | 1.25% | 1.25% | 1.75% | 1.75% |
| Swiss franc | 0.25% | 0.25% | 0.25% | 0.25% | 0.50% | 0.50% | 0.60% | 0.60% |
| Thai baht | 4.32% | 4.25% | 4.30% | 4.25% | na | na | na | na |
Notice: Icelandic Krona, New Zealand Dollar, and South African Rand. Icelandic Krona, makes me thirsty for some odd reason.
Any opinions? I want to get into diversifying my portfolio to foreign investments, but I’m really new to this whole idea. I’ve thought about metals and other commodities, but I think those are little volatile right now too. I want to place my money in safe, foreign investments. I don’t want to have to monitor regime changes and rebellions in my portfolio.
Flexo
September 15, 2006 at 6:15 am
Don’t forget to look not just at the interest rates, but the currency’s inflation and governmental and economic stability. Interest rates won’t matter if high inflation eats up the value of the currency.
freedumb
September 15, 2006 at 8:02 am
Thanks Flexo…There’s a lot of homework to do before I invest…