Foreign currencies deposits?

[Devilac]

The interest rates for deposits in foreign currencies are quite attractive. NZD ard 7%, USD ard 3%. Is it worth it? Any risks that I have to look out for?

[Verve]

my novice thoughts are this.

 

the us currency has been on a downward spiral for a long time, and technically speaking its not worth as much as it is, or i heard something along those lines from several people. at 3 percent not worth at all

 

nz currency at 7 percent seems quite attractive, of course there will be currency fluctuations so you gotta see your time horizon (longer = more interest to hedge currency movements), sg deposits rates are pathetic and i suspect if there is more than a 5 percent difference you may be able to buffer the currency movements with the interest gain but again ,its foreign currency risk so you have to see how prepared are you for a loss if things go otherwise.

 

my take, if not prepared for 30 percent loss, dont take the risk

[Vroomtattat]

Not forgetting, the exchange rate fluctuates.