Speaking of markets...
Looking around at investment options, I find that a 1 year CD at ICBC in China earns 2.79% interest. This looks puny compared to the rate on the simple savings account at my credit union in the US, currently at 4.07%. But considering that the dollar has depreciated 3.95% against the Chinese yuan in the last year, the Chinese option is not looking so bad.
(Then again, maybe stocks is the way to go: the Vanguard S&P 500 index fund is 6.64% YTD, 15.07% over the past year; and the Shanghai stock market! Hoho, the Shanghai stock market composite index is up over 50% since the start of the year.)
posted by Micah Sittig at 20:03,
1 comments
1 Comments:
2.79% is the normal deposit rate, so you don't need to lock it into a one year CD. This rate went up in March. However, you still get hit with a 25% tax on the interest, and the CPI (inflation) is around 2.7 to 3%, so your RMB savings in China are earning a negative rate of return. If you are counting on the appreciation of the RMB over the dollar, that is a different story, but only if you need the dollars. Doesn't help for living in Shanghai.
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