Holding foreign currency incurs opportunity cost and inflation. Enjoy high interest instead with the BOC Foreign Currency Time Deposit. Here’s everything you need to know.
If you’re a frequent traveller, a forex investor, or saving up for overseas education, you’ll know that it’s not always to your benefit to purchase foreign currency at the spot exchange rate.
Instead, you should buy in when the exchange rate is in your favour, but this is not always possible for various reasons. Plus, once exchanged, foreign currency becomes illiquid, as you can only use it overseas or for forex trading. This means it’s not always feasible to hold on to large amounts of foreign currencies, even though you need it later on.
So how can travellers, forex investors and those with plans for overseas study take better advantage of favourable exchange rates when they appear, while not bearing the opportunity cost of maintaining a large foreign currency balance?
Table of contents
- Earn up to 4.85% p.a.with BOC Foreign Currency Time Deposit
- Why use BOC Foreign Currency Time Deposit?
- How BOC Foreign Currency Time Deposit benefits you
- How to sign up for BOC Foreign Currency Time Deposit
Bank of China (BOC) Singapore Branch Foreign Currency Time Deposit lets you earn up to 4.85% p.a.
The answer is to look for a bank account that lets you earn high interest on your foreign currency balance, while allowing you to purchase the currency you need on your own schedule.
And that’s exactly what you’ll get with the BOC Foreign Currency Time Deposit, a convenient and flexible way to save up the foreign currency you need while growing your balance with high interest rates.
How does BOC Foreign Currency Time Deposit work?
The BOC Foreign Currency Time Deposit allows you to deposit foreign currency for fixed durations and earn interest on your balance. You can convert SGD into foreign currency via your BOC Multi-Currency Savings Account, then transfer your foreign funds into your Time Deposit Account.
When desired, you can withdraw your foreign currency from your Time Deposit back into your Multi-Currency Savings Account. Everything – from depositing to withdrawals – can be seamlessly done with just a few taps on the BOC Mobile Banking app.
Why use BOC Foreign Currency Time Deposit?
Earn high interest (up to 4.85% p.a.) on your foreign currency balance
As mentioned, one of the biggest disadvantages of holding foreign currency (or any currency for that matter) is the opportunity cost incurred. This is especially so if you’re holding a large balance, such as the several thousands needed for a long holiday or the tens of thousands typically required for an overseas University degree. You may even need more for forex investing.
But with the BOC Foreign Currency Time Deposit, you no longer need to bear this opportunity cost. That’s because you can earn up to 4.85% p.a. on your foreign currency deposit, allowing you to stave off the negative effects of inflation, as well as buffering against the effects of falling exchange rates.
Here’s how much BOC is offering on their Time Deposits.
|
Currency |
Minimum deposit |
Interest rate (p.a.) |
|
USD |
USD 10,000 |
1 month: 4.85% 3 month: 4.8% 6 month: 4.5% |
|
AUD |
AUD 10,000 |
1 month: 3.6% 3 month: 3.9% 6 month: 4.1% |
|
NZD |
NZD 10,000 |
1 month: 4.8% 3 month: 4.5% 6 month: 4.3% |
|
EUR |
EUR 10,000 |
1 month: 3% |
|
GPB |
GPB 10,000 |
1 month: 4.5% |
There’s no limit to how many times you can deposit your funds. This means once you complete your time deposit, you can immediately make another deposit and continue to enjoy the interest rates offered by BOC.
Note, though, that the minimum deposit is $10,000 in the respective foreign currency. You can build up that amount in your Multi-Currency Savings Account first, then make the deposit when ready.
Preferential forex rates with BOC
Importantly, you can benefit from more favourable exchange rates when converting foreign currency using the BOC Multi-Currency Savings Account.
That’s because BOC offers mid-market rates, and also does not impose a service charge. Moneychangers are often unable to match mid-market rates used by banks; even if they somehow do, they’ll tack on a service charge, which means a worse deal for you overall.
No lock-ins, no penalty for early withdrawal of time deposit
Now, some of you may be wary of time deposits, preferring not to lock up your funds just in case you need them. This is especially a concern for forex investors who may want to take advantage of sudden opportunities that may present themselves.
This won’t be a problem with BOC Foreign Currency Time Deposit, as there are no penalties incurred for early withdrawal of your funds. This means there’s no need to lock in your foreign currency funds – you can make a deposit to benefit from the interest offered, and simply withdraw them when and should an opportunity for higher returns come along.
Seamless banking via BOC Mobile Banking app
And perhaps the best part is everything can be done via the BOC Mobile Banking App, so you can enjoy convenient access to your funds at all times and from anywhere (as long as you have a data connection, that is).
There’s a bit of set up beforehand (more on this later), but once everything is set up, you’ll have your foreign currency deposits literally at your fingertips.
How BOC Foreign Currency Time Deposit benefits you
Frequent travellers: Grow your travel budget with high interest, enjoy better forex rates
For frequent travellers, the most attractive benefit is to grow your travel budget with the high interest rates offered by BOC. Use the interest earned to enhance your holiday, from flight upgrades, to a Michelin-starred meal, or even an extra night or two at your favourite hotel.
You can also enjoy a better forex rate at BOC to squeeze out a little more from your budget and make your holiday just a little sweeter.
Those preparing for an overseas education: Save up faster with high interest, convenient management of funds
Those saving up for an overseas education will find the BOC Foreign Currency Time Deposit especially beneficial.
This is because you are unlikely to withdraw your foreign deposits, which means you can fully enjoy the high interest rates offered by BOC. Consider that you can make several deposits as you go along and earn interest on every tranche – this way, you can leverage your time deposits to help you grow the amount needed for your overseas education.
And when payments are necessary, the BOC Mobile Banking app makes it easy. Simply use the app to seamlessly and conveniently withdraw your time deposits into your Multi-Currency Savings Account. Your foreign funds will then be made available to make the payments you need.
Forex investors: Hedge against volatility, seamless management of your finds
Forex investors know that sometimes the wiser play is to get out of the trade and let the market play itself out. BOC Foreign Currency Time Deposit offers a convenient and rewarding option to wait out market volatility, allowing investors to replace uncertainty with guaranteed high interest rates.
As mentioned earlier, there are no penalties for early withdrawal of Time Deposits – this means forex investors can hedge against unfavourable market conditions while having the flexibility to quickly pivot back into market opportunities.
Here too, the BOC Mobile Banking app makes things easy, offering seamless and convenient fund management to discerning forex investors.
How to sign up for BOC Foreign Currency Time Deposit
Excited about the potential benefits offered by BOC Foreign Currency Time Deposit? Why not sign up for an account to try it out for yourself? Here’re the steps to follow:
For new customers
- Sign up for a BOC Multi-Currency Savings Account using MyInfo.
- Download the BOC Mobile Banking app.
- Link your Multi-Currency Savings Account via “More - Account Management - Add Account” using the Mobile Banking app.
- Deposit or exchange your desired foreign currency in the Multi-currency Account.
- Using the Mobile Banking app, place a Time Deposit
- To do so login to your Mobile Banking app
- Tap “Place Time Deposit” on the Home page (you can also find this option under “More”)
For existing customers
Instantly open your Multi-currency Account via “Apply Deposit Account” function using the Mobile Banking app, and perform Steps 3-5 above to place your Foreign Currency Time Deposit.
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