USD Bank Account + Term Deposit Rates

[Jaa]

If i'm not mistaken, security of deposits in NZ would be different than abroad as NZ doesn't have depositor insurance. If they did on NZD, they certainly would not on foreign currency. This has been the case where I grew up in Canada where Cdn currency deposits were insured up to $100K per account in CDN currency but anything foreign is not covered.

Therefore the issue of where you park your funds is important, hence i'm speaking big fish here. Also each broker has varying coverage on insured balances. SIPC comes to my mind which both IBKR and TDAmeritrade/Schwab offers to ALL account holders.

What I don't like about NZ brokers like Jarden is their high administration fees. Also if I choose to leave NZ to live abroad, i'm much happier with a large overseas broker than someone local only to NZ.

Yes IBRK has a SIPC guarantee up to $US250k and a FDIC sweep program above that up to $US2m so it is arguably safer than any NZ bank account.

The problem with IBRK cash account is that any amount over $US60k is liable for US estate taxes. So if you die, the US govt takes 40% over the $60k threshold. Invest the cash instead in Irish domiciled USD money market ETFs like IB01 or VDST. Both yielding ~5.5% at the moment.

Wise are rolling out pretty much that as an interest option for their USD accounts so maybe wait for that. They sweep the USD into a USD money market fund albeit one with a relatively high management fee.