Replies to post #7442 on Your Economy (No Politics) (YE1)

[Elroy Jetson]

I have found that foreign banks offer better interest rates than Everbank accounts and you don't have to tie up your money.

I have accounts with Citibank Australia, HSBC Australia, Citibank Canada and UBS Switzerland.

The Australian and Swiss banks also offer multi-currency accounts.

Citibank Australia frequently offers me these derivative accounts where you tie your money up for five years tied to a particular stock market, commodity, or currency. I always give them a pass.

The most bizarre offering was tied to Australian mortgage rates -- it paid 9% interest if mortgage rates remained between 5.5% and 7.25%. But if mortgage rates fell below, or rose above that range, the derivative account paid no interest that quarter -- and you were locked in for five years. I have no idea how to evaluate a product like that, but I do know Citibank isn't in the business of giving away money. They have placed their bet - and they want you to take the opposite side of the trade. No thanks.

I prefer the simple 5.50% interest on the Online Cash Manager account with Citibank Australia -- no minimum and I don't have to lock my money up.

http://www.citibank.com.au/

If you need any assistance in opening these accounts, just ask, I know the details from experience, as well as U.S. government reporting requirements.