Current Interest Rates (savings and time deposits)

Based on some recent discussions I thought it might be useful to provide an overview of interest rates for your savings / time deposits at different banks.

Here are the current offers as of today by Citibank (number of months but % p.a. of course):

Savings

NTD - 0.35
EUR/USD - 0.15 / 0.2 (? - around there)

Time deposits

NZD
1, 2 - 4.54
3, 6, 12 - 4.56

USD
1 - 2.75
6 - 1.10
12 - 1.70
24 - 1.90
36 - 1.95

EUR
1 - 0.99
6 - 1.23
12 - 1.41

NTD
1 - 0.95
6 - 1.1
12 - 1.70
24 - 1.90
36 - 1.95

2 and 3 months also possible, rates somewhere between 1 and 6 months.

Feel free to add other banks.

Just got 1.990% for a fixed 12 month timed deposit by the Taiwan Business Bank, about the best i have seen here in Taipei for the time being.

[quote]USD
1 - 2.75
6 - 1.10
12 - 1.70
24 - 1.90
36 - 1.95 [/quote]

Am I reading this right? The interest rate on timed deposits in US dollars goes down the longer you fix the deposit?!?

:loco:

Can this be right?

Maybe I am misreading the chart. Can you confirm this, Rascal? One-month fixed has a 2.75 percent return, and 36 months is 1.95 percent?!?

Why on earth would anyone commit to 36 months at 1.95 percent? Take those USD and put them in a money market account. Or a CD. Or invest in an index fund–or something. 1.95 percent for three years won’t even beat the rate of inflation.

Rascal probably did not make a mistake. This is an inverted yield curve. The US Treasury market is starting to do this and banks are shifting their consumer deposit accounts also.

Look at it like spreads or in banking terms net interest margin. Currently the US Federal Reserve is pushing up its Federal Funds Target Rate but longer dated debt is having yields go down. So short term rates are getting higher than long term rates.

The market Fed Funds (an overnight interbank borrowing rate) is near the Fed’s target of 4.25%. So if you do the 1-month deposit Citibank pays you 2.75% and then can lend that at around 4.35% (the current 1-month LIBOR rate)…so net interest margin is about 1.60%…that is what Citibank makes in gross profit…
But for 3 years, Citibank makes a 4.25% (3-year US Treasury) - 1.95% (rate Citi pays you) = 2.30%…but Citi has much more risk for the 3 year deposit…if they take your money and buy the 3-year UST and interest rates go down…they will have a smaller margin on your deposit and maybe lose b/c of all operating costs…and over 3 years interest rates can move a lot…compared to 1 month or less which has very very small movements…so the 1.60% that Citi gets for a 1-month deposit is almost for no risk…but the 2.30% is for a very big risk in comparison…so Citibank does not want longer deposits…if longer term rates are the same or lower than short rates…

It means the US economy is heading for a recession. Well not necessarily, but it is a frequent indicator.

You got it Fox…
I think this time a full blown recession is not likely but very close to 0% real GDP growth is very likely…

Look at the last recession in 2000/2001 it was actually very very mild but people think it was very severe because of extremely high job losses and stock market declines…

Sorry, can’t confirm - it might just be a typing error (0.75% perhaps?). I wrote the rates down on a piece of paper but it ended up in the bin after posting. :blush:

Latest rates from Citibank (02.08.2006):

01 month: NTD1.05 / USD3.73
02 months: NTD1.10 / -
03 months: NTD1.15 / USD3.75
06 months: NTD1.20 / USD3.76
08 months: NTD1.20 / -
09 months: NTD1.30 / -
12 months: NTD1.90 / USD3.71
13 months: NTD1.90 / -

Savings: NTD0.35 / USD0.2

Latest rate on a 12 mo. CD at Countrywide Bank (a very reputable US bank that one can open an account for online):

[color=green]
5.65%
[/color]

bank.countrywide.com/CWBRates.aspx

Looks like the banks are looking to get cash in the vaults again. Even my credit union back home is offering a 7-month CD at 5.75%:

techcu.com/Personal/Accounts/Cer … cates_home

There’s some money markets at just above 5% currently too.

Latest rates from Citibank (03.11.2006):

01 month: NTD1.05 / USD3.67
02 months: NTD1.10 / -
03 months: NTD1.15 / USD3.66
06 months: NTD1.20 / USD3.62
08 months: NTD1.30 / -
09 months: NTD2.00 / -
12 months: NTD2.00 / USD3.45
13 months: NTD2.00 / -

Savings: NTD0.35 / USD0.20

HSBC gets slightly higher with USD time deposits I believe. Just asked last week but can’t remember now (old age :blush:)

Not the information I have:

Citibank: NTD
1 Month 0.95%
2 Months 1.00%
3 Months 1.05%
6 Months 1.10%
8 Months 1.10%
9 Months 1.20%
12 Months 1.90%
13 Months 1.90%
18 Months 1.90%
24 Months 1.95%
36 Months 2.00%

USD
Tenure Minimum Amount (USD) and Interest Rate (%)
5,000.00 30,000.00 50,000.00 100,000.00 250,000.00
1 Month 3.67% 3.87% 4.02% 4.07% 4.12%
2 Months 3.70% 3.90% 4.05% 4.10% 4.15%
3 Months 3.65% 3.85% 4.00% 4.05% 4.10%
6 Months 3.66% 3.86% 4.01% 4.06% 4.11%
12 Months 3.55% 3.75% 3.90% 3.95% 4.00%

HSBC Rates to follow

NTD in HSBC Term Amount Rate
1 Month 1.1000
2 Months 1.1000
3 Months 1.1500
4 Months 1.2000
5 Months 1.2000
6 Months 1.3000
12 Months 1.4500
18 Months 1.5000
24 Months 1.5000

USD Rates:
Term Amount Rate
7 Days Fixed 1,000.00 - 455,269.75 2.5000
1 Month Fixed 1,000.00 - 455,269.75 3.8500
3 Months Fixed 1,000.00 - 455,269.75 3.9500
6 Months Fixed 1,000.00 - 455,269.75 4.0500
9 Months Fixed 1,000.00 - 455,269.75 4.1000
12 Months Fixed 1,000.00 - 455,269.75 4.1500

So a comparison can be made as of 6th November, 2006.

My tentative (tired, too) conclusions.

NTD conclusions
*HSBC is better for short term rates
*CB is better for longer term rates

HSBC-USD
Generally better for all but the biggest deposits.

Anyone suggest how to do better?

I know that interest rates in the Post Office in NTD top out at 2.20%. USD dollar rates can be found better elsewhere, I’m sure. I just don’t know where.

4%ca. seems somewhat low to my mind. I’d be looking for 5%.

Kenneth