Somebody asked me before, is that good to keep foreign currency and earn interest? Foreign currency current account offers a form of savings in the currency of your choice. You are able to hold on to the currency and convert it into ringgit when necessary or when there is also beneficial to those who receive and pay expenses in a foreign currency, such as businessmen who frequently travel abroad and those who work overseas or paying education fees overseas.
The account holder may earn interest on his balance. The interest rate, if any, is generally calculated on a daily basis subject to a minimum day-end balance, and credited to a monthly basis. The rates vary depending on the foreign currency and interest may not be given for certain currencies. Also, rates are subject to change without prior notice.
In terms of requirements, UOB banks foreign currency account outshines its peers. No minimum amount is required and it offers the highest rates for accounts denominated in the Australian and New Zealand dollars at 4.2% and 2.2% per annum respectively. While Hong Leong Banks gives the highest interest for accounts denominated in the Canadian dollar (minimum deposit of C$1,000 or equivalent earns 0.20% per annum), British pound (minimum deposit of 500 pounds earns 0.40%), Hong Kong dollar (minimum deposit of HK$6,000 earns 0.10%) and Singapore dollar (minimum deposit of S$1,000 earns 0.20%).
With the exception of Maybank and UOB, the bank normally will charge an account maintenance fee on a monthly, half yearly or yearly basis. Some of the banks waive the charges of the account holder maintains a minimum amount for a given period. Besides that, there can also be transaction charges for certain banks.
