Lightyear saving in USD

L

limerick2023

New Member
Messages
7
I have seen that Lightyear offers 4.50% for USD or GBP, over 3.25% for EUR. Given that the exchange fee and rates are very reasonable, any downsizes on converting the EUR deposited to USD to get better rate??

Thanks!
 
The exchange rate at the end of the term

The higher rate in usa night look attractive but if the furthest depreciates versus euro that would be bad.

Why might it depreciate? If high inflation.
When you convert back to euro what will you get.
 
Still, from 3.25 to 4.5% is around 33% more, and it's highly unlikely the exchange rate varies that much. Thanks for your reply!
 
It's a third more of a low figure, which is still... a low figure. As with shares it depends on how long a view you can afford to take, and if you come in at the top or the bottom. The USD:EUR exchange rate has actually been quite volatile in the past couple of years. It's gone from a high of over parity in October '22 to a low of .90 in spring, it's still nowhere near that peak of 14 months ago so if you'd sunk 20K in at that stage you'd be less than happy that it was only worth 18K and change six months later if you had needed to make your finances liquid then... despite any higher interest that would have offset that a little. It has varied about 10% in the last 14 months, and 20% if you go back three years. So yes, currency fluctuations are a real consideration, otherwise everyone would do it.
(I am occasionally paid in USD so I have been watching the exchange rates avidly over the past three years!)
 
limerick2023 said:
Still, from 3.25 to 4.5% is around 33% more, and it's highly unlikely the exchange rate varies that much. Thanks for your reply!
Click to expand...
It is a 33% difference in the interest rate but it only requires about a 1% difference in exchange rate to make you worse off.
€100 in the euro account will mean after a year you would have €103.25
€100 in the US account will mean after a year you would have €104.50 if the interest rate stays the same. So a change of 1.5% in the exchange rate would mean you were losing money doing this. This isn't even including currency conversion fees which would eat in it as well.

Today 1 euro is worth 1.076 dollars. A year ago, that euro was worth 1.051 dollars so if you had done this a year ago you would have lost money than if you had just kept it in euro.
 
You must log in or register to reply here.
Back
Top