Jakarta, CNBC Indonesia – United States Dollar (USD) deposit interest rates may not be as high as Rupiah-denominated commercial banks, people’s economic banks (BPR) or digital banks. However, foreign currency (forex) deposits can certainly still provide excess profits that you can get.
As written on the official website of the Deposit Insurance Corporation (LPS), the interest rate for guaranteeing foreign currency deposits is only 2.25%. This means that when there is a dollar deposit with interest above 2.25%, the dollar deposit will not be guaranteed by LPS.
The total value of this guarantee is clearly much lower than deposits denominated in Rupiah at either commercial banks or BPRs.
However, you should know that there are several benefits you can get from this foreign currency deposit, here is a review.
Exchange rate gains in the long run
As time goes by, changes in the exchange rate between the United States Dollar (US) and the Rupiah will certainly affect your profits.
The stronger the foreign currency is against the Rupiah, the greater the exchange rate advantage you will get.
This can also create a hedge for the savings you have.
Pocket money when traveling abroad
When you have plans to travel abroad, whether for religious purposes or just traveling, you can get additional pocket money from this foreign currency deposit.
Your task of collecting money to pay for accommodation will be slightly reduced by this deposit.
Additional costs for children’s education abroad
Are you also planning to send your children to school abroad? Your foreign currency deposits may be used to increase your long-term investments.
However, be aware that it is a good idea to diversify your investments for the long term.
Take advantage of instruments such as shares, stock mutual funds, or government securities (SBN) to help you raise money.
Note! List of Bank Deposits with Interest above 5%