USD 1.2 Mil - Where in The World Can I Get The Best Interest Rate?

Leisvath on 28/07/2015 - 09:44

Hi all,

Longggggggggg time lurker and first time poster here. (not really, hubby is an active member of ozbargain!)

The story:

I have USD 1.2mil sitting in my bank account in Vietnam and I have been on a look out for another bank account which gives better interest rate than 0.75%/year.

I could ask my hubby to convert it all the VND to take advantage of the 6%/year but I like the security the USD provides (so far).

So anyone know where in the world can I get a decent return on USD account I would really love to hear about it.

Thanks.

Financial

Comments

  • strikerzebra on 28/07/2015 - 10:08
    +11

    Not sure if this is real or trolling .. .

    • eisvath on 28/07/2015 - 18:32

      Not trolling, ozbargain covers a large group of ethnicity so the knowledge is powerful.

  • iridiumstem on 28/07/2015 - 10:10
    +2

    I am sure you could get better, professional financial advice at a fraction of the cash you own, that will get you back more than the fraction you'd spend on the advice.

    • eisvath on 28/07/2015 - 10:20
      +1

      I live and work in Australia so really prefer to do it myself. I don't think of doing anything crazy, happy to keep it in the bank for earning low interest.

      Plus i keep hearing bad things about FA so it really got on my nerves~

      • iridiumstem on 28/07/2015 - 10:53
        +2

        My personal instinct goes, even if you want to do something safe, they'd know more about that than the normal people. Just my opinion.

        I didn't neg you btw.

  • Dacs on 28/07/2015 - 10:11
    +6

    Short answer: Greece

    • teardrops21 on 28/07/2015 - 10:43
      +1

      You could buy a for islands with this amountamount of cash.

  • scrimshaw on 28/07/2015 - 10:27
    +1

    I just went with annuities. Signed up for one in 2012 @ 4.80 percent per annum for a period of 10 years. Much better than term deposits.

  • Dacs on 28/07/2015 - 11:09
    +2

    Seriously, unless you're really into money management and investment put some time into finding a good, fixed-fee financial advisor. There are lots of factors that need to be taken into account with this: Time period, risk tolerance, future needs, etc.

  • Davo1111 on 28/07/2015 - 11:24
    -1

    split it into 5, transfer it into 5 australian bank accounts and take advantage of the government bank underwriting scheme?

    • eisvath on 28/07/2015 - 13:23
      -3

      That way we get the same interest rate as we do now and still have to pay tax…

      • Davo1111 on 28/07/2015 - 15:45

        you need an accountant

        • eisvath on 28/07/2015 - 17:02

          I have one. I rather don't disclose assest if possible

      • kipps on 28/07/2015 - 21:55
        +3

        If you're an Australian resident then you gotta pay tax on interest on overseas accounts. If the ATO catches you, watch out.

        • eisvath on 28/07/2015 - 22:02
          -7

          Lol…. Waiting for the ATO with anticipation. ~~

        • Brendoo on 29/07/2015 - 09:10
          +1

          You don't always. Tax can be paid in Vietnam instead of in Australia, with Vietnam not allowed to tax more than 10% as per the tax treaty between Vietnam and Australia. You can of course pay it here instead.

          As for not making the ATO aware, I agree - certainly watch out, it's not if nowadays, it's when. Australia and Vietnamese Govts have an information sharing agreement specifically to catch tax criminals, this goes hand in hand with our tax treaty agreements. At the ATO we use sophisticated computer systems for international data matching, we use AUSTRAC to monitor foreign transactions. We don't only monitor 1:1 to a particular country, we monitor to many at the same time and cross reference. Make a transaction from Vietnam to the US, for example, it may trigger an alert with someone in Australia. We are currently recovering about half a billion dollars a year from tax criminals with funds overseas who are not paying tax and returning that money to Australia to benefit the honest people who do the right thing. It is getting easier for us each year to do this due to increases in technology both here and overseas.

        • eisvath on 29/07/2015 - 11:31
          -1

          @Brendoo: that's really good to know thanks. Cute attempt by the ATO though~~

  • backpaqer on 28/07/2015 - 11:30

    Nigeria!

    • backpaqer on 28/07/2015 - 11:34
      -1

      but seriously…if Oz doesn't know about it, then you're not paying tax on it. I'd be building businesses and getting a far better return than 6%…more like 50-100% return…and if in Vietnam in Tourist-ville…400-500%.

  • melpen on 28/07/2015 - 11:31
    +2

    Isn't it Vietnam a communist country? You entrust them with USD1.2 Millons rather than bringing it back to Australia? I thought that itself is already a very bold move?

  • strikerzebra on 28/07/2015 - 11:38
    +1

    It doesn't sound right how you just let your money build up to $1.2 million in cash in vietnam and now are wondering where to invest it?

  • halfnhalf71 on 28/07/2015 - 12:05
    +2

    I will give you an extra 0.25% if you invest with me

  • mick123 on 28/07/2015 - 12:34
    +14

    Whatever you do, don't ask a financial advisor or any professionals.. Instead, rely on a bunch of strangers on the interweb

  • t_c on 28/07/2015 - 12:45
    +8

    Might be able to get a 1 bedroom unit in Sydney for that much.

  • donga100 on 28/07/2015 - 12:47

    Why not just buy US bonds?

    • eisvath on 28/07/2015 - 13:12
      -3

      I really prefer to keep the fund in the banks.

      • donga100 on 28/07/2015 - 13:15

        It is essentially keeping it in the US Reserve Bank as a term deposit.

        • eisvath on 28/07/2015 - 13:24

          I'll read up about it when I get time this weekend. Thanks donga.

    • KaTst3R on 31/07/2015 - 15:42
      -1

      Rate rise, yields go up, US bond pricing will fall. Not good idea to purchase right now…you might wanna hold off a little..

  • arislan on 28/07/2015 - 13:14
    +1

    I would diversify… some in cash, some in an index tracker, some in debt instruments…

  • jackofspade on 28/07/2015 - 13:41
    +2

    What a nice problem to have.

  • jimbo687 on 29/07/2015 - 07:51
    -2

    Definitely find a trusted financial adviser.

  • Brendoo on 29/07/2015 - 08:15
    +1

    With that amount of money, leaving it in a bank account is not much better than burying it in the back yard, it's quite a waste. If you live in Australia, buy a nice piece of property with it here as an investment. You'll make a ton on rent and the appreciation in the value will give you some nice growth. You'll get nice tax breaks too.

    And with the low'ish Aussie dollar at the moment your USD will go so much further here than it used to.

    • usmanyousaf on 29/07/2015 - 08:32

      +1

    • lgacb08 on 29/07/2015 - 21:46

      better doing the conversion next year when AUD hit the 60s

  • chumlee on 29/07/2015 - 21:51

    Zimbabwe or Brazil. Both have interest rates in the double digits due to high inflation.

    • backpaqer on 30/07/2015 - 09:24

      More risk = more return. Stick $1m of cash under Mugabe's nose and you'll never see it again.

  • Hirolol on 30/07/2015 - 21:21
    -1

    why not a term deposit, they offer a bit better than standard bank accounts

  • leiiv on 31/07/2015 - 09:01

    Where do Apple, Google, etc keep most of their minimally taxed cash again? Maype we can use the same banks..

    • KaTst3R on 31/07/2015 - 15:33

      The large corporations will still deposit with the usual banks like BOA, Stan Chart or Citi but the only difference is that the account is situated in the British Virgin Islands or Bahamas…interest rates will still be the same, only pay less tax.

      It not like they are depositing with Bank of Bahamas or something (im making names up)…

  • KaTst3R on 31/07/2015 - 15:39

    OP converting to VND is a bad idea. You may earn 6% but you will get whacked by the depreciation of the VND. Right now, most emerging market currencies are falling against the greenback. Reason is because of the impending US interest rate rise which will hammer EM currencies further as traders unwind their positions when the rate rise (expected to be in September, depending on the GDP numbers tonight).

    Best suggestion, speak to a proper financial adviser regarding your cash and they may be able to construct a conservative portfolio for you or maybe negotiate for a better term deposit rate.

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