Foreign currency vs US Savings account?
I recently moved our family finances to the E*Trade bank (good% rates, free ATM), and the "Global Trading" accounts caught my eye. We're saving for a house and want to make a very large down payment (large for us anyways)..and want to keep that money liquid. E*Trade is currently paying out 4.7% on the savings account, but I'm wondering with the continued slide of the Dollar, and my easy access to foreign currencies via the "Global Trading Account", would it be a semi-smart move to have a fair amount of our savings sitting in foreign currency? E*Trade pays out almost zero % on money sitting in the foreign currency....but if the dollar continues to slide like I think it will, is foreign currency a valid place to stow that money for a couple of years while we're saving? I'm not talking about constantly moving currency back and forth, so what are my downsides? E*Trade fees? Taxes when I convert the currency back? Any thoughts are greatly appreciated!
Public Comments
- well right now since the dollar is sliding I think that it is a good deal to move your family finances to the E*trade but to tell you the truth I really don't know I'm having the same problem
- The global trading account seems to give you the ability to buy and sell stocks on 6 foreign stock exchanges, and not a savings account in different currencies. You can accomplish the same thing by buying ADRs of foreign companies. for example, cx, basf
- If you are planning on buying the home in US$, just leave your investments in US$. The movement against foreign currencies is immaterial to your situation in that case. Why take the risk of the exchange rate going the other way (which it could at any time) and decreasing your home purchasing power. If you are planning on buying a home in Europe (and therefore paying in Euros), it might be appropriate to have some of your savings in Euros.
- it does not sound like currency is an area you have expertise in.............you can loose on a change in rates..............the market moves quick sometimes....................... and bye, bye, house...........stay with what you know...............home money is not investing/trading money
