How can non-US citizens take advantage of the high interest rates on the dollar?
As a non-US citizen, I have some funds from selling stocks that are in dollars. While some of my money is invested in the stock market, I am interested in investing a portion of it in a low-risk channel such as interest-bearing deposit. My local bank has offered me a 4.3% interest rate for the local currency and 1% for USD dollars. However, I would prefer not to convert my dollars to the local currency. While there are other local banks offering 6% interest for dollars, I want to avoid the bureaucracy and transaction fees associated with transferring the money back and forth. Therefore, I would like to find a way to maximize the interest rate with low risk by buying a trading asset available in the market. One option is to invest in bond funds, but I lost a lot of money in 2022 due to the impact of interest rates on them. Another option I considered was investing the money in held till maturity ETFs such as SGOV, but the yield is very low compared to other investment options. As I am new to this type of ETF, I may be missing something. Are there any other alternatives I should consider?
are you not able to buy short dated treasuries from your broker?
I am abke to buy anything that is traded in the open market. I looked on shot dated funds and the yield looks very low comparing to the interest you get in the bank ( almost zero risk ). Am i missing something? Can you name one that gives near 6%?
I dont think there is one for 6%, sorry
A local bank offering 6% on the currency you want? I don’t get why that’s not preferable. As for assets you could buy in your brokerage account, the only thing that really you can do is buy low risk bonds or invest in a stable value fund.
6% nominal. We don’t know which country they’re in to calculate the real yield
I assume you are also a non-resident. My Canadian in-laws have a US bank account. Is there a reason you can't obtain a US TIN and open an account? There is no way around wire transfer fees but they are relatively low.