I'm residing in singapore, why is interest in fixed deposit in SGD 0.825% but in USD 4.535% under sameconditio
Answer:
the interest rates should be different because of the currency exchange rates. Currency exchange rates vary based on many things, inflation rates, interest rates, purchasing power parity, no one is 100% sure what moves currencies. Anyway, if you took your money in Singapore dollars, converted them to US dollars, invested them in the 4.535% account and then at the end of the term took the US dollars and converted them back to Singapore dollars, you should end up with the same amount of Singapore dollars that you would have if you would have invested in the .825% Singapore rate. If you run the calculations and that's not the case, then you should invest in whichever method lets you have more Singapore dollars at the end.
I don't know the answer but I have a business partner in Singapore that may be able to help you. Email me at WellnessWealth@iglide.net.
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