Banking in Bali

woody54

Member

Member since 14 December 2015

CANNGU

woody54

03 August 2016 16:06:28

woody54

03 August 2016 16:06:28

CANNGU

Hi I am moving to Bali next year and buying a leasehold villa . My question is I have seen the interest rates are higher than here in Australia . I am buying a rental property in Australia for a source of income and applying for a Kitas Visa to retire . I also have money I was going to put into a term deposit in my bank in Australia . But I have noticed you can get nearly twice the interest in term deposits in banks in Bali . Is this a good idea or can any one give some advice on banking and term deposits in Bali . Thanks Geoff.

Hansson

04 August 2016 01:08:02

Hansson

04 August 2016 01:08:02

As far as term deposits go, Indonesia has some of the highest interest rates around. My recommendation is to stick to short term deposits, say 1 month or 3 month rollover as they usually earn the best interest as well as giving you flexibility.

Banks in Indonesia are graded at different tiers, the big banks like BCA and Mandiri and a few others are the safest, but offer the lowest rates. Medium sized banks usually offer a slightly better rate. For example, if BCA offer you 6.5% interest, Permata Bank may offer you 6.75%. Then there are the lower tier banks like Victoria Bank which might offer something like 10% or more but being a smaller bank means more risk. The rate may also be affected by how much you intend to place in the deposit. Placing more than Rp2 miliar may get you a better interest rate.