Foreign Currency Trading Banks
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!
I would suggest you wait and see if the feds cut interest rates again. If they say they will, do it . I cashed in my dollars before the 2 rate cuts for Euros.
Forex – Foreign Exchange Rates for Foreign Currency
