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Q: How can foreigners save their money in China/Chinese banks and enjoy the benefits?
Hello again!
I have been looking for a safe and good way of saving my money I earned in the past four years. I want to invest it either in some reliable business or in some bank with monthly/quarterly a year/ six month saving basis. Does anyone know the procedure of saving money and generating interest on that money here in China that could be suitable for the foreigners?
8 years 46 weeks ago in Money & Banking - China
Since no one so far has answered you, and the answer is rather simple, I will give it a try.
But I will not do the foot work for you. So, go to a few Chinese Banks and ask them the same question you asked us. You will find about three areas of interest, and they will be: Saving accounts, time deposits (or CD) and investment services. Saving accounts pay lousy interest, maybe from 0.75 to 1.5 % return per year. Time deposits will pay according to the amount of time you wish to have your money invested. From 6 months to 5 years is normal, and interest will go from about 2 % per year to close to 6 %, depending on banks. And investment services will do what we know "brokers" back home will do.
Just remember, the higher the risk you take with your money, the higher the return. It is up to you to check and accept a level of risk you feel fine with it.
There is another scheme I am familiar with, but carries a very high risk. Ity requires a minimum investment of 300,000 yuan, minimum of one year deposit, increments to be in 50,000 yuan multiples. It is up to you and your negotiating skills, but returns are in the 20 to 35 % range. So, invest 300,000 and get minimum 3,000 yuan per month deposited into your bank account. But must warn you, this scheme is against Chinese Laws, and if your "banker" is busted, you loose the investment, or if he flies into the night and disapears also.
Since no one so far has answered you, and the answer is rather simple, I will give it a try.
But I will not do the foot work for you. So, go to a few Chinese Banks and ask them the same question you asked us. You will find about three areas of interest, and they will be: Saving accounts, time deposits (or CD) and investment services. Saving accounts pay lousy interest, maybe from 0.75 to 1.5 % return per year. Time deposits will pay according to the amount of time you wish to have your money invested. From 6 months to 5 years is normal, and interest will go from about 2 % per year to close to 6 %, depending on banks. And investment services will do what we know "brokers" back home will do.
Just remember, the higher the risk you take with your money, the higher the return. It is up to you to check and accept a level of risk you feel fine with it.
There is another scheme I am familiar with, but carries a very high risk. Ity requires a minimum investment of 300,000 yuan, minimum of one year deposit, increments to be in 50,000 yuan multiples. It is up to you and your negotiating skills, but returns are in the 20 to 35 % range. So, invest 300,000 and get minimum 3,000 yuan per month deposited into your bank account. But must warn you, this scheme is against Chinese Laws, and if your "banker" is busted, you loose the investment, or if he flies into the night and disapears also.
For the most part, financial services here are not for dirty foreigners.
coineineagh:
true, i'm afraid. they like using us to gain face and teach English because their own people's skill is dismal. but they don't like the idea that the little bit of money we make from it goes abroad. even western union services in my city charge double for foreigners. but they only bully lower incomes, so if you show up with a big wad of cash ($25k+), they'll respect you, and doors will open.
I will add to HappyExPat's knowledge which is pretty much correct.
There are dynamic savings accounts that are lower interest and you can take the money out whenever you want. But with very low interest rates.
Static savings account with higher interest but you have to keep the money in there for usually 3 months to a year+. You can get some decent money this way if you want a low risk but a stable return. Returns are better than dynamic.
Investments as he mentioned but the last method he mentioned was sort of a grey economy. You give the money directly to businesses or lenders. This is for the business to expand or used for start-up capital. In one year, if all goes well... they return the money with about 10-25% returns. My wife and I did this with her father's friend's factory business. Gave them 200k RMB got back 220k RMB in a year.
It is risky because there isn't really any legal protection but its China. Bank don't like businesses using this method because then China can't control everything and instead the people have more independent power.
