Any experience with this?.....would like to just use it as a saving mechanism. Obviously i would like to have internet access to the account and be able to transfer cash on line. is this a good idea for personnel wealth protection? its a pity the interest rates are so low....i heard Andorra and Costa Rica are the new places for this? any suggestions would be appreciated. W.
Most of local banks can help you with this, as they all have overseas branches. You need to get clearance from SARS and that usally not difficult to obtain. Your motives? - for you to decide. Would for now stay away from "funny" countries.
Don't do it, especially not through a local bank. It is a mechanism for losing money fast. Firstly, cash is trash - and your money earns absolutely no interest. Second, it will cost you at least R200 each time you want to deposit money into the account. Standard Bank used to charge me GBP 20 each time I wanted to withdraw again! Crazy. Third, they will absolutely shaft you on the exchange rate used for transfering money one way or the other. If you are earning foreign exchane, then sure (but don't do it via a local bank). But if you want to save for investment purposes - rather use a mechanism that earns interest - like a unit trust, etf or something. At this stage, a foreign ETF is probably a pretty safe bet - you will be buying into recovering markets at rock bottom rand prices. If overseas markets tank, it is a pretty even money bet that the rand will tank as well, effectively hedging your investment.
that's the reply i needed to hear, thanks!! already have a foreign ETF but thought maybe it could help.....it was more of a concern that if our country goes the way of Zim and they seize banks with my cash in it i can at least have foreign cash in a forign bank account...worst case scene, thanks again!! W.
Just observe that those are not international ETF's in the true sense. They are local funds that who's mandates invest off shore. They are subject to reserve bank rules (and I think that they legally have to have some local exposure?) Only way to truly invest internationally is through an international broker - or at least I think this is the case?
I find Vanguard ETF's - and there are numerous- made up of almost anything you wish, to be cheap to buy and then sell if you want.(Check their website) Make use of something like TD Ameritrade or any of the US brokers - usually on average 10 bucks and even less a trade.
Ja, I had forgotten about these. The DBX UK fund would have given you a dividend yield of 1.9%, which is better than your offshore bank account interest, and you would have had a capital appreciation of 5% or 6% this year.