Posted by forex at 8:56 AM
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1. Contact your bank or find a bank that offers multiple currency savings accounts. Call large multinational banks if your bank does not offer such accounts . Inquire as to minimum deposit size and whether they have foreign-denominated certificates of deposits or savings accounts. Such institutions will normally have some means for the investor to access foreign-denominated accounts.
2. Open your account. Decide whether to receive interest at regular intervals or have the proceeds reinvested. Use the bank to link the proceeds directly into your checking account for convenience. Inquire what the terms of the bank savings account are. Ask specifically if there is a minimum deposit and time requirement. Certificates of deposit usually pay higher rates of interest.
3. Choose your currency of choice carefully. When money is withdrawn from the account, you will have to decide whether to accept dollars or the foreign currency unless it's stated in the agreement. There will be currency fluctuations, and the value you receive may be more or less than the interest paid on the account.
4. Buy foreign currency only if you need to diversify your account holdings. Other ways of diversification include buying stocks and receiving dividends in foreign currency. Consider buying ADRs also known as American Depository Receipts of stocks that pay dividends converted to United States dollars.