Remittance to Singaporean's bank account in Malaysia only RM10k max?

[James Porn]

Some banks in SG are already offering FD @2.1% for 12mths - Maybank and Bank Of China.
As the exchange rate for RM is still quite volatile, one has to consider carefully before putting their $$$ in MY.
Assuming the rate in MY is around 4%

If left $20,000 in SG for 2.1% for 12 mths FD - interest = S$420
Principal + interest = S$20,420

In MY $20,000 = RM58,600 (1:2.93)
Interest @ 4% = RM2344.
If RM appreciate, rejoice!
But if RM dip to 1:3
Principal + Interest = 58,600+2344= 60,944 @ 1:3 = S$20,314!

So, take a risk, put your $$ in MY and hope for the best.

To get your breakeven point after 1 year:

RM 60,944 / SGD 20,420 = 2.9845 (SGD/RM exchange rate, break even point). Anything lower you make, anything higher you lose out.

 

[Tekkun]

To get your breakeven point after 1 year:

RM 60,944 / SGD 20,420 = 2.9845 (SGD/RM exchange rate, break even point). Anything lower you make, anything higher you lose out.

Buying and selling rates are different.

 

[snowbird]

Buying and selling rates are different.

Whatever.
As long as you place FD in a foreign currency, you are subjected to the volatility of the exchange rate, so enjoy the roller coaster ride.
Also, if the exchange rate is becoming not so favourable, you can just watch and pray hard and remember that there is always a premature withdrawal penalty which may wipes out any interest earn.

 

[Tekkun]

Whatever.
As long as you place FD in a foreign currency, you are subjected to the volatility of the exchange rate, so enjoy the roller coaster ride.
Also, if the exchange rate is becoming not so favourable, you can just watch and pray hard and remember that there is always a premature withdrawal penalty which may wipes out any interest earn.

Totally agree. Last Thursday I transferred S$65K to Singapore as forex MYR to SGD is 2.935. Today it is 2.88. Difference is RM 3575.

 

[James Porn]

Buying and selling rates are different.

This is the way to calculate the "Breakeven" point of your initial entry rate. Knowing a breakeven point will allow you to know if you are making or losing on your investments. The buying and selling rates are quoted by the banks, money changers after arriving at the breakeven point.

 

[FHBH12]

Totally agree. Last Thursday I transferred S$65K to Singapore as forex MYR to SGD is 2.935. Today it is 2.88. Difference is RM 3575.

I notice that in recent months that whenever US Fed threatens to raise rates, MYR weakens. If Fed is dovish, vice versa occurs.

Five Things You Need to Know to Start Your Day
http://www.bloomberg.com/news/artic...vish-fed-what-people-area-talking-about-today

 

[Tekkun]

I notice that in recent months that whenever US Fed threatens to raise rates, MYR weakens. If Fed is dovish, vice versa occurs.

Five Things You Need to Know to Start Your Day
http://www.bloomberg.com/news/artic...vish-fed-what-people-area-talking-about-today

I use a bandwith within my averaging appetite.

 

[FHBH12]

I use a bandwith within my averaging appetite.

This week MAS will be deciding whether to weaken SGD. Most analysts are expecting MAS to keep the exchange rate policy steady. Currently the exchange is stable at 2.90.