Foreign Currency Account (FCA)

Foreign Currency Account (FCA) is an account linked to one purpose code to one currency. If customer would like to transact in different currency, customer has to open a new account(s) for each currency. Some banks offer single FCA with supports of multiple foreign currency with the same purpose code.

There are many reasons why a person would need a FCA. Whether are looking for an investment opportunity, to pay for your child's education overseas, an international business venture or to earn a regular income in foreign currency. FCA are eligible for protection by Perbadanan Insurans Deposit Malaysia (PIDM).

What is the main purpose for a person to put his money into a foreign currency account?

1. Hedge against exchange rate fluctuations

Foreign currency accounts can be a good option for importers and exporters. If you open an account in the currency in which you make the bulk of your transactions you can hedge against exchange rate changes by keeping money in the account until the rate is beneficial to you.

2. An alternative form of investment with potentially higher interest rates

For example, a fixed deposit FCA denominated in New Zealand Dollars gives 8.2% interest rate per annum for the period of 12 months, as offered by United Overseas Bank (UOB).

3. For future child education funding

If you plan to send your child to study in Australia, saving your child’s education fund in an Australian Dollars denominated FCA will save you the worries of Australian Dollars appreciation.

4. For non-resident employed in Malaysia to retain foreign currency salary received from overseas.

5. Transactions are less costly and save a significant amount of money lost through the exchange conversion process to
individuals with children studying overseas Individuals who are employed overseas or have regular income from abroad Repatriation of funds from individual FCAs offshore send back to FCAs onshore.

undo Other Banking Products