Banking Savings and Term Deposits

tcollins

Hi All Can anyone share their advice/ experience with interest earned from savings/ term deposits at Indo banks? I am currently with Permatta just for a general transaction account, but have seen some reasonably decent interest rates for short term deposits. Main question is how 'safe' is your money at most of these banks (I am assuming fine but just curious), and how the taxation works for foreigners- do the banks just take tax out automatically? Not thinking of investing huge amounts of life savings or anything like that, but interested in something small given that interest rates here look a lot better than Australia. Thanks

davita

It is as safe as your bank and, if within the Gov't declared interest rates, is insured. The standard withholding tax is 20%. If you decide to become taxable in RI, and file annually, that withholding can be adjusted according to your taxable rates. I personally don't file and accept the 20% tax on the interest gained...and I invest a considerable amount in IDR to pay bills.

tcollins

Thanks for that. Can I ask what bank you are with, and what savings or term deposit rates and timeframes you have found work best? Thanks

davita

I'm with HSBC Premier...not a local bank. All banks advertise different rates and some of the local rakyat (peoples) banks are higher than the main named banks, but, imo, can be riskier. The rates and terms constantly change...just shop around.