What do you think about term deposit rates in australia/new zealand banks paying 6.5percent. as a us

A lot of it depends on where the dollar goes against the Australian/New Zealand currency. 6.5% is the nominal rate of interest. If the Australian/New Zealand currency increases in value, you%26#039;ll get more than 6.5%. If it decreases, you%26#039;ll get less.

Lets say for simplicity, that rates are 6%, and the Australian dollar (AUD) is at 0.80US$/1AUD (it is really about 0.86$US now). You invest $1,000 U.S., which converts to $1,250 Australian ($1,000 / .8). One year passes, and you now have $1,325 Australian ($1,250 *1.06). What it is worth in the U.S. is going to depend on the exchange rate. If, say, the rate had gone to 0.85$US/1AUD, you would get $1,325 * .85 = $1,126.25, which would equate to a 12.62% rate of return in U.S. dollars. If it goes to 0.75$US/AUD, you get $1,325 * .75 = $993.75, or a -0.625% return.

Attached below are the charts of the two currencies. Both appear to be strengthening over the last few years. If the trend continues, you might get some pretty good returns out of investments in Australia/New Zealand. But you will be taking a risk on future currency movements. As they say, past performance is no guarantee of future results.

What do you think about term deposit rates in australia/new zealand banks paying 6.5percent. as a us citizen.?student loans company

Wish I had some of that. 5% is the most I have found in my area.

What do you think about term deposit rates in australia/new zealand banks paying 6.5percent. as a us citizen.? loan

sounds fair

for a rich old person who has 1,000,000 or so

they would get 65,000 every year just from interest

at age 60 start spending down the principle too

subtract taxes, probly keeps the money safe and makes a good life , like bonds or something