Posts Tagged ‘us savings bonds advantages’
Us Savings Bonds Advantages
October 23rd, 2009
Question: Savings account investment with NZ or AUD?
Hey guys, I was looking over some investment options and foreign currency saving accounts came into the picture. This graphing tool posed some questions.
http://www.oanda.com/products/fxgraph/fxgraph.shtml
select NZ and AU and compare them with SGD (singapore dollar)
as you can see, both graphs will rise steadily with time, with the regular business cycles factored in.
Some questions:
1)What does a rise in currency exchange rate mean?
2) Does it mean that the SGD is getting weaker over time relative to the NZ/AUD?
3) If it is getting weaker, is that an advantage in a F.C. savings account?
4) How does an interest rate in a savings account move with the movement of the currency exchange rate?
5) Finally just a side topic, why do bond interests rise (which is good for us holders) when there is inflation? Does it apply to a stagflating economy too?
Thanks for all the help! That was long question haha 
Answer: Congratulations……. you’re looking at one of the most dangerous market places on the planet. Most purchases/sales are done at margin (at levels from 100X – 200X).
Unless you’ve got years of trading experience I would not get involved.
If you “must” get into foreign currency, check out;
http://www.everbank.com/
(go to their WorldMarkets area)
1975 “Grandson” US Savings Bonds Ad Council PSA
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