term deposits.......
term deposits.......
I want to put some cash in a term deposit.....
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
You might find this thread useful: http://www.khmer440.com/chat_forum/view ... 39&t=48581
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- 440 newbie - handle with care
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You can get 6.5% plus if you are willing to keep your money tied up for a number of years, especially if you have $100,000+. Saying that, if there is another financial crisis, I doubt the government here would be able to bail out the banks, so Cambodia is high-risk in many regards, compared to alternative investments.
I have two accounts at Prasac. One in Riel at 9.75%, and on in USD at 8.1%.
If you have 10K and make 800.00 in interest over a year......the taxes are around fifty bucks....not bad.
If you have 10K and make 800.00 in interest over a year......the taxes are around fifty bucks....not bad.
Well, the Riel has been anywhere between 3.900 and 4.500 to one USD while I was here (6 years). If you start at 4.000 to one dollar and the exchange rate is 4.400 to a dollar when your deposit ends you'll lose about 10% in USD value. That's the risk for the savings in Riel, besides the general risk of a bank collapsing. Although the Riel seems pretty stable now, it has gone up from 4.000 to 4075 (today) in just a few weeks.jimi50 wrote:I want to put some cash in a term deposit.....
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
Another crisis?adamimperium wrote:You can get 6.5% plus if you are willing to keep your money tied up for a number of years, especially if you have $100,000+. Saying that, if there is another financial crisis, I doubt the government here would be able to bail out the banks, so Cambodia is high-risk in many regards, compared to alternative investments.
When was the first one in Cambodia?
pew, pew, pew, pew!
Or you could just wait until it dropped again or take out your cash in Riel and spend it as normal @ 4000KHR to 1USD or reinvest it.Kachang wrote:Well, the Riel has been anywhere between 3.900 and 4.500 to one USD while I was here (6 years). If you start at 4.000 to one dollar and the exchange rate is 4.400 to a dollar when your deposit ends you'll lose about 10% in USD value. That's the risk for the savings in Riel, besides the general risk of a bank collapsing. Although the Riel seems pretty stable now, it has gone up from 4.000 to 4075 (today) in just a few weeks.jimi50 wrote:I want to put some cash in a term deposit.....
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
Or just stop worrying and still it in!
It's more likely to be devalued. So if you exchanged at 4400 and the Reil is devalued to 3500 (or 1000 or whatever) you'd be laughing your moobs off.
Last edited by YaTingPom on Wed May 25, 2016 7:00 pm, edited 1 time in total.
pew, pew, pew, pew!
Where is my facepalm? Oh, there it isYaTingPom wrote:Or you could just wait until it dropped again or take out your cash in Riel and spend it as normal @ 4000KHR to 1USD or reinvest it.Kachang wrote:Well, the Riel has been anywhere between 3.900 and 4.500 to one USD while I was here (6 years). If you start at 4.000 to one dollar and the exchange rate is 4.400 to a dollar when your deposit ends you'll lose about 10% in USD value. That's the risk for the savings in Riel, besides the general risk of a bank collapsing. Although the Riel seems pretty stable now, it has gone up from 4.000 to 4075 (today) in just a few weeks.jimi50 wrote:I want to put some cash in a term deposit.....
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
Or just stop worrying and still it in!
If it was that simple why doesn't the whole world buy up Riel and enjoy the 10% no risk returns?
Oh yeah, because there is no guarantee that the Riel will maintain the present level against the dollar.
To OP I think the non-resident tax on interest is 15% but I am ready to be corrected
It's 6% for after six months residency.
You know in the UK you can get 6℅ over five years fixed with Ratesetter or more with Zopa.
Often the reason why people don't do that (besides the fact lots of people do deposit large sums with MFI's) is because they don't have any money.
Or they live with their mums.
You know in the UK you can get 6℅ over five years fixed with Ratesetter or more with Zopa.
Often the reason why people don't do that (besides the fact lots of people do deposit large sums with MFI's) is because they don't have any money.
Or they live with their mums.
pew, pew, pew, pew!
Sure, except that at 3500 it would be an appreciation, not a devaluation.yatingpom wrote:It's more likely to be devalued. So if you exchanged at 4400 and the Reil is devalued to 3500 (or 1000 or whatever) you'd be laughing your moobs off
But don't let those minor details get in the way of your lectures...
I'm guessing you have no money to invest, yes?logos wrote:Sure, except that at 3500 it would be an appreciation, not a devaluation.yatingpom wrote:It's more likely to be devalued. So if you exchanged at 4400 and the Reil is devalued to 3500 (or 1000 or whatever) you'd be laughing your moobs off
But don't let those minor details get in the way of your lectures...
pew, pew, pew, pew!
- Barang_doa_slae
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Been there... Done that....
As others stated it is a gamble. IMO the stable 9.5 to 10.5% yields offered don't reflect the risk scale it involves which I find (and I am surely wrong on that) less worrisome now than a few years back when the world was afraid of ever bigger successive QE.
Anyway the funniest part of it is to try to gain another 0.5% on the exchange rate and find yourself counting huge piles of money so dirty that it regularily puts counting machines out of order in a very Tony Montana fashion... Bear also in mind that in the many hours it will take, you will find many opportunities to chit chat and/or underskirt peek sexy MFI tellers
As others stated it is a gamble. IMO the stable 9.5 to 10.5% yields offered don't reflect the risk scale it involves which I find (and I am surely wrong on that) less worrisome now than a few years back when the world was afraid of ever bigger successive QE.
Anyway the funniest part of it is to try to gain another 0.5% on the exchange rate and find yourself counting huge piles of money so dirty that it regularily puts counting machines out of order in a very Tony Montana fashion... Bear also in mind that in the many hours it will take, you will find many opportunities to chit chat and/or underskirt peek sexy MFI tellers
I'm still waiting for the gold price to return to 10K riel for one chi. And for an occasion to spend some old 50 riel notes.YaTingPom wrote:Or you could just wait until it dropped again or take out your cash in Riel and spend it as normal @ 4000KHR to 1USD or reinvest it.Kachang wrote:Well, the Riel has been anywhere between 3.900 and 4.500 to one USD while I was here (6 years). If you start at 4.000 to one dollar and the exchange rate is 4.400 to a dollar when your deposit ends you'll lose about 10% in USD value. That's the risk for the savings in Riel, besides the general risk of a bank collapsing. Although the Riel seems pretty stable now, it has gone up from 4.000 to 4075 (today) in just a few weeks.jimi50 wrote:I want to put some cash in a term deposit.....
Are there any opinions as to why not change UDS into riel to get the higher interest rate?
Also has anyone had any experience with LOLC?
ANY imput would be appreciated.
Also does anyone know the % of tax I would pay as a non resident?
Thanks!
JIMI50
That makes ore sense.YaTingPom wrote: Or just stop worrying and still it in!
If that's the case the interest on savings in riels would be lower than the interest rate for USD.YaTingPom wrote: It's more likely to be devalued. So if you exchanged at 4400 and the Reil is devalued to 3500 (or 1000 or whatever) you'd be laughing your moobs off.
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YaTingPom wrote:I'm guessing you have no money to invest, yes?logos wrote:Sure, except that at 3500 it would be an appreciation, not a devaluation.yatingpom wrote:It's more likely to be devalued. So if you exchanged at 4400 and the Reil is devalued to 3500 (or 1000 or whatever) you'd be laughing your moobs off
But don't let those minor details get in the way of your lectures...
You're just being silly here. logos is quite right. If the riel was devalued, it would move to 4500-5000, not the other direction to 3500 as you claim. A devaluation means the currency is worth less, so it takes more riel to buy the USD.
If you thought a devaluation was going to happen, you wouldn't invest in riel-denominated deposits. You'd do the exact opposite.
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