Saving Overseas?

ILsaver | Jan 17, 2011 | 2 posts since 2011

I saw the posting here about a Chinese bank, located on US soil, that allowed for US residents to save there. Is there a similar situation for the Australian banking system? Is there an Australian credit union with a branch in the USA? Australia has much higher interest rates these days for savers, and politically is more stable over the long term.

Does the Austrialian government of the US government prohibit savings from US citizens being placed in an overseas account?

Illinois saver

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Answers

Ken Tumin | Jan 17, 2011 | 5,706 posts since 2009

EverBank does offer foreign currency accounts including accounts in the Australian Dollar. I noticed EverBank's Australian Dollar 12-mo WorldCurrency CD yield is currently 3.63% APY.

According to EverBank, these are FDIC insured, but there is still risk of loss due to currency price fluctuation. A good example of this risk was when Iceland had its financial collapse. People who had EverBank's Iceland CDs had big losses as described in this blog post.

I reviewed these World Currency CDs in this 2007 blog post

Shorebreak | Jan 17, 2011 | 4,035 posts since 2010

From Terms and conditions at Citibank Australia web site. It is probably similar in their restrictions as other Australian financial institutions.

https://www.citibank.com.au/global_docs/pdf/OnlineCash_ManagerPDS_and_Supp.pdf

To apply for an Account, you and any additional signatory must:

1. Be an Australian resident and/or be available to be identified in Australia when opening the Account.

2. Be 18 years of age or older.

3. Be identified. In order to be identified you need to supply adequate information and pass Citibank’s verification process. Depending on the Account, this may include providing photo identification and other forms of identification with your application.