Indonesian Term Deposits

HappyMan

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I've never had the money to put into one of these, but once I stack all the Covid relief money together there should be over a 100 million sitting around. So, I have a couple of questions.

Does the Indonesian government insure only IDR deposits, or can I use USD?

Is 100 million enough to open a deposit account?

Approximately what kind of penalties would I face for an early withdrawal?

This is most of the money I have in the world, so does anyone have a better idea that is also safe?
 

snpark

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Are you happy with 3.5%?
Hsbc you can open online instantly a high rate savings account that pays you 3.5%
Used to be 4 but reduced few months back due to covid

But for speed and ease that's a decent one. I stumbled across it by accident and was able to open it instantly online on the website (I already Bank with Hsbc) and u have instant access even through the app and allowed 2 withdrawals a month without losing any interest

It's a good safe place to keep your 100 also in case suddenly you have an emergency and need it or some within 30 seconds

You need more to get govt bonds ORI 11 etc which pay more but take time to open and withdraw etc and really for medium term deposit and forget it
 

Brian86

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I know at BNI I can do a Deposito of IDR or USD, or several other currencies, but the interest rates are vastly different. IDR is about 3.25% now and USD is 0.3%. That difference is commensurate with the risk in currency fluctuations. Minimum is 10 million rupiah or 1000 USD, so you have plenty.

If you 'cairkan' early, there is no penalty in the form of a fee, you just lose the last month's interest.

 

HappyMan

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You need more to get govt bonds ORI 11 etc which pay more but take time to open and withdraw etc and really for medium term deposit and forget it
I'm going to have a bit of a look at the ORI. I need to get a handle on whether the increased interest rate is worth the increased risk of catastrophic inflation. Because, I just crammed 3.5% and 7.2% into a compounding calculator and wow are those different results.

I might put just a bit into HSBC for safe keeping (flight money, essentially) and put the larger balance into something more long term, 5 years at least.

The only reason other than disaster for me to touch this money in the next 15 years would be to take my kid for a long visit to America (which would somehow be worth most of my savings). Of course, disasters do happen.
 

HappyMan

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I know at BNI I can do a Deposito of IDR or USD, or several other currencies, but the interest rates are vastly different. IDR is about 3.25% now and USD is 0.3%. That difference is commensurate with the risk in currency fluctuations. Minimum is 10 million rupiah or 1000 USD, so you have plenty.

If you 'cairkan' early, there is no penalty in the form of a fee, you just lose the last month's interest.

0.3% is just, ouch. I suppose it probably makes sense with the Fed setting rates so low (is that what Planet Money said?) but, at that rate it'd be a be a toss up between just leaving it where it is and looking into index funds.
Honestly, I am only looking for a deposit because I remember seeing people in this forum writing about insured 7% interest rates somewhere. I've never had enough money for it to be worth trying to get interest on it and now that I have just a bit, I feel a attached to the concept of money making money.
 

snpark

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My ex RM at Hsbc always got me great deals with ori govt bonds etc. She's now at Mega bank. I can send you her w/a if you want her to let you know what's on the market these days
Most bonds are down to 5% +/- these days

Few years ago could get 8+% easy
 

snpark

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IMG-20201116-WA0023.jpg
 

HappyMan

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My ex RM at Hsbc always got me great deals with ori govt bonds etc. She's now at Mega bank. I can send you her w/a if you want her to let you know what's on the market these days
Most bonds are down to 5% +/- these days

Few years ago could get 8+% easy
With your following post I see what you mean about me not having enough money to get in to a high interest deposit program. 500 jt minimum... is way more than my maximum.

I'd like to talk to the lady about what is out there, but I'm going to do a bit more reading here and around the internet first. Wouldn't do to show off too much ignorance. I had to google ORI and try to sort advertisements from paid sponsorship from actual press. I should at least know the names of a few things before I go bothering professionals.

Thanks snpark
 

snpark

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Best thing is open the Hsbc which is free and instant and at least make 3.5% while you decide
 

Ruserious

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Just a note that if the funds are currently in USD dont use HSBC to change it to rupiah. Theres threads with lots of other options and HSBC are pretty lousy on exchange rates.
 

Balifrog

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Best thing is open the Hsbc which is free and instant and at least make 3.5% while you decide
HSBC lowered their interest rate on their High Rate Deposit Account (or whatever they call it) .
It used to be 4%, but as they "charge" around 30% on the monthly interest (tax, fee, ? ?) You had net just over 3%.
Now they lowered the "gross rate" to 3%, and as they still apply the 30% charge, you're left with 2%.
Check their website.
 

snpark

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HSBC lowered their interest rate on their High Rate Deposit Account (or whatever they call it) .
It used to be 4%, but as they "charge" around 30% on the monthly interest (tax, fee, ? ?) You had net just over 3%.
Now they lowered the "gross rate" to 3%, and as they still apply the 30% charge, you're left with 2%.
Check their website.

Sorry you're wrong / incorrect / confused

Firstly that is not the account we / I am talking about
I am referring to the Online High Rate Savings Account
Exactly that one. Not any deposit account or anything

They don't "charge" anything

If you mean tax on the interest, well here every bank account that pays interest then you are liable to pay tax on it
But as long as you have npwp and kitas/p then that is only 10%

Certainly for me on all my bank accounts here I only get taxed 10% on any interest accrued on all my accounts here
 

gemima

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Sorry you're wrong / incorrect / confused

Firstly that is not the account we / I am talking about
I am referring to the Online High Rate Savings Account
Exactly that one. Not any deposit account or anything

They don't "charge" anything

If you mean tax on the interest, well here every bank account that pays interest then you are liable to pay tax on it
But as long as you have npwp and kitas/p then that is only 10%

Certainly for me on all my bank accounts here I only get taxed 10% on any interest accrued on all my accounts here
Same - I have this account too. As long as you have over 100,000,000 in there it's 3.5% (I just checked online to confirmed this).
But I think the tax is 20% rather than 10% (I have NPWP and KITAS).
 

snpark

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Good at least someone agrees with me lol

Re tax, yes they credit full, then deduct tax @20% regardless
But my RM previously told me if you "register" your NPWP with them along with your KITAS etc then you only pay 10%?
Not sure how or why, but I did, and now I do
So 3.5 is 3.15% net to me which beats the 0% I get with my BCA

So now tbh I keep my spare liquid cash in this HSBC and up to 2 times a month just w/d a lump to my BCA for bills etc rather than before I kept my liquid spare change in BCA just for the ease
But now since its all connected via apps etc it is literally 30 seconds to move 100jt from hsbc online to my hsbc premier, then instantly transfer from there to my bca

Eventually through trial and error I have sussed out a scheme that works for me, and for int'l transfers I use hsbc, I can get money from uk same or next day especially with time difference, call send it from uk before 1pm there and it is in hsbc jakarta when i wake up
 

Helpful Herbert

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I wonder why HSBC gives such low rates. With Sinarmas I always get the maximum rate protected by the government LPS scheme, which is currently 4.25% gross (3 4% net), whatever the deposit amount.
 

HappyMan

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Looks like HSBC's Online High Rate Savings Account is going to be the way to go then, at least until I figure out if I want to take more risk or not. I'll rock up to one of their offices next time I am in town. Thanks guys.

Edit: I apparently forgot to hot send on this yesterday.
 

HappyMan

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I wonder why HSBC gives such low rates. With Sinarmas I always get the maximum rate protected by the government LPS scheme, which is currently 4.25% gross (3 4% net), whatever the deposit amount.
Could you tell me the account name?
 

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