Reporter Wang Yiqi/Reporting from Taipei
Taichung Bank announced that from now until September 30, it will launch the “Meililonglai II” U.S. dollar premium time deposit project, with an annual interest rate of up to 5.4%. (Photo/Provided by Taichung Bank)
Following the attack on US presidential candidate Trump, the market expects the Federal Reserve to slow down its pace of interest rate cuts, leading to continued interest rate rises. Taichung Bank announced that from now until September 30, 2024, it will launch the “Meililonglai II” time deposit premium project, offering a higher interest rate than the US dollar time deposit project launched in March, with an annual interest rate of up to 5.4%. Additionally, Taishin Bank launched the “Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project”, providing a 6% annual interest rate discount for US dollars for one month.
Former U.S. President Trump was shot. Economists believe that the incident significantly increased Trump’s chances of winning the election. As Trump had threatened to increase tariffs following being elected, the outside world is concerned regarding potential inflation. This might lead the U.S. Federal Reserve to extend its interest rate cuts beyond September, contrary to previous expectations.
With higher interest rates expected to persist for a longer period, Taichung Commercial Bank has continued to launch the “Meililonglai II” time deposit advantageous project. Now until September 30, the public can apply for it online or at the counter. Eligible applicants include individuals and corporate accounts, with no restrictions on financial management conditions. As long as the deposit is new funds or purchased in New Taiwan dollars, and the corresponding deposit threshold is met, depositors can enjoy a maximum annual interest rate of 5.4% for US dollar fixed deposits for 3 months, or an 8-month preferential interest rate of 5.25%.
According to the announcement on Taichung Bank’s official website, the U.S. dollar fixed deposit advantageous project offers two preferential plans for customers to choose from. The minimum single deposit amount for the project is US$1,000 with no maximum limit. For those aiming to accumulate wealth or diversify exchange rate risks, they can purchase foreign currencies in batches according to their needs. High-asset groups with more abundant funds can enjoy a minimum single transaction deposit amount of US$100,000 and a more favorable deposit interest rate.
As the U.S. Federal Reserve’s interest rate cut schedule continues to be postponed, U.S. dollar interest rates remain at a plateau. Individuals needing U.S. dollars can take advantage of the period before the interest rate cut to secure high-interest U.S. dollar deposits. However, Taichung Bank reminded investors to carefully consider their ability to withstand exchange rate fluctuations and allocate foreign currency assets wisely to ensure steady interest income.
Taishin Bank also launched the “Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project” which provides 6% annual interest rate for one month in US dollars. (Photo/Provided by Taishin Bank)
Taishin Bank has also launched the “Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project”, offering a discount of 6% annual interest for one month in U.S. dollars and 4.2% annual interest in Australian dollars for one month. The minimum deposit threshold is only NT$1,000 in original currency. Customers can complete transactions online via online banking and mobile banking.
In addition, Taishin Bank’s “Hao Xiangli 5 Foreign Currency Fixed Deposit Plan” offers a 6-month USD plan with tiered interest rates. The annual interest rate in the first three months is as high as 5.6%, and the annual interest rate in the 4th to 6th month is 5%. The average annual interest rate reaches 5.3%, and there are also plans with an annual interest rate of 3.8% for Australian dollars for 6 months and an annual interest rate of 2.2% for RMB for 6 months. The preferential activity limit ends on August 30, 2024.
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Taichung Bank Launches "Meililonglai II" US Dollar Premium Time Deposit Project with 5.4% Annual Interest Rate
High Interest Rates Spur Taichung Bank’s "Meililonglai II" US Dollar Premium Time Deposit Project
Following the attack on US presidential candidate Trump, market expectations suggest the Federal Reserve might slow down the pace of interest rate cuts, leading to continued interest rate increases. In response, Taichung Bank has announced the launch of its "Meililonglai II" time deposit premium project, offering a higher interest rate compared to the US dollar time deposit project launched back in March. This new project boasts an annual interest rate of up to 5.4%, valid until September 30, 2024.
Furthermore, Taishin Bank has concurrently introduced the "Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project," providing a 6% annual interest rate discount for US dollar deposits for one month.
Economists Anticipate High Interest Rates and Increased Inflation
Economists believe the attack on Trump significantly boosted his chances of winning the election. Concerns surrounding Trump’s potential increase in tariffs following assuming presidency have fueled fears of inflation, leading to speculation that the US Federal Reserve may extend its interest rate cuts beyond the anticipated September timeframe.
The continuation of high interest rates for a prolonged period has motivated Taichung Commercial Bank to launch the "Meililonglai II" time deposit advantageous project. Individuals and corporate accounts alike can apply for this project online or in person until September 30th. It’s worth noting that there are no restrictions on financial management conditions. New funds or purchases made in New Taiwan dollars that meet the corresponding deposit threshold qualify for a maximum annual interest rate of 5.4% for US dollar fixed deposits for 3 months and a preferential 8-month interest rate of 5.25%.
Taichung Bank’s US Dollar Time Deposit Advantageous Project: Key Details
Taichung Bank’s official website details the two preferential plans available within the newly launched US dollar fixed deposit advantageous project:
- Plan 1: The minimum single deposit amount is US$1,000, with no maximum limit. This plan caters to individuals aiming to diversify exchange rate risks and accumulate funds.
- Plan 2: This plan targets high-asset groups with greater financial resources and requires a minimum deposit amount of US$100,000 per transaction. It offers more generous deposit interest rates.
Seizing the Opportunity Before Interest Rate Cuts
With the US Federal Reserve continuously postponing its scheduled interest rate cuts, US dollar interest rates continue to remain high. Individuals needing US dollars can capitalize on the period before the interest rate cut to secure advantageous high-interest US dollar deposits. Taichung Bank, however, emphasizes the importance of considering the risk of exchange rate fluctuations and recommends the wise allocation of foreign currency assets to achieve steady interest income.
Taishin Bank’s "Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project"
Taishin Bank has launched its "Zhuan Zhuan 5 Exchange Foreign Currency Fixed Deposit Project," offering a 6% annual interest rate discount for US dollar deposits for one month and a 4.2% annual interest rate discount for Australian dollar deposits, also for one month. The minimum deposit threshold for this project is only NT$1,000 in the original currency. Customers can conveniently manage their deposits via online banking and mobile banking platforms.
Taishin Bank’s "Hao Xiangli 5 Foreign Currency Fixed Deposit Plan"
Taishin Bank’s "Hao Xiangli 5 Foreign Currency Fixed Deposit Plan" presents a 6-month USD plan featuring tiered interest rates:
- First 3 months: An annual interest rate of 5.6%.
- 4th to 6th months: An annual interest rate of 5%.
The average annual interest rate throughout the 6-month period reaches 5.3%. This plan also encompasses other options:
- 6-month Australian dollar plan: An annual interest rate of 3.8%.
- 6-month RMB plan: An annual interest rate of 2.2%.
These preferential activities are scheduled to conclude on August 30, 2024.
Capitalizing on High Interest Rates for US Dollar Deposits
This current window of high interest rates presents a valuable opportunity for individuals seeking to maximize their US dollar deposits. Both Taichung Bank’s "Meililonglai II" and Taishin Bank’s "Zhuan Zhuan 5" projects offer enticing deals, enabling investors to secure attractive returns amidst evolving market dynamics. Remember to carefully consider the risks associated with exchange rate fluctuations and make informed decisions regarding your foreign currency asset allocation.
