Icelandic high interest accounts and currency?

DJB · 19-01-2009, 11:16 PM

Hi guys..
I was sitting here, wondering..

I have quite a bit of savings from the last year, working on superyachts. My money are deposited on an offshore account. I have an icelandic friend whom I worked with on the same boat. He took all his savings from the boat and deposited them on his icelandic high interest account since he could not get an offshore one. His high interest icelandic account gives him 16% interests a year.

Unfortunately for him, the Icelandic currency suffered a lot from the global financial crisis and the currency is currently at a nearly lowest possible level imaginable.

However, this is where it becomes interesting - If I take all of my saved up euros from my offshore account and deposit them in an account the same as the one my friend has - then I will get a 16% interest rate AND I will get all my euros changed to the icelandic currency which is at its lowest right now.

Personally, I strongly believe that the Icelandic currency will recover. Especially since the last measurement shows that the icelandic population will vote "yes" to the Euro - which will chance the icelandic currency and make it strong again. And when this happens, then withdraw the money/transfer them back to my offshore euro account?

I have absolutely no knowledge with currency exchange or other financial matters, so I might be wrong - but is there a possibility to gain a double winnings from this scenario if I act now?

***Brian Turner*** · 23-01-2009, 05:01 PM

Isn't there a problem with converting Icelandic currency back into other currencies??

DJB · 23-01-2009, 05:49 PM

Quote:

Originally Posted by Brian Turner

Isn't there a problem with converting Icelandic currency back into other currencies??

I don't know, that's why I'm asking this question, since my financial knowledge is quite low.
Is the Icelandic currency not existing any longer?

***Brian Turner*** · 27-01-2009, 02:52 PM

It's probably fair to say not many people appear to be rushing their savings to Iceland - I suspect there's a very good reason for this, not least in converting outside of Icelandic currency.

19-01-2009, 11:16 PM	#1 (permalink)
DJB Junior Member Join Date: Nov 2008 Location: Around Posts: 16	Icelandic high interest accounts and currency? Hi guys.. I was sitting here, wondering.. I have quite a bit of savings from the last year, working on superyachts. My money are deposited on an offshore account. I have an icelandic friend whom I worked with on the same boat. He took all his savings from the boat and deposited them on his icelandic high interest account since he could not get an offshore one. His high interest icelandic account gives him 16% interests a year. Unfortunately for him, the Icelandic currency suffered a lot from the global financial crisis and the currency is currently at a nearly lowest possible level imaginable. However, this is where it becomes interesting - If I take all of my saved up euros from my offshore account and deposit them in an account the same as the one my friend has - then I will get a 16% interest rate AND I will get all my euros changed to the icelandic currency which is at its lowest right now. Personally, I strongly believe that the Icelandic currency will recover. Especially since the last measurement shows that the icelandic population will vote "yes" to the Euro - which will chance the icelandic currency and make it strong again. And when this happens, then withdraw the money/transfer them back to my offshore euro account? I have absolutely no knowledge with currency exchange or other financial matters, so I might be wrong - but is there a possibility to gain a double winnings from this scenario if I act now? Last edited by DJB; 19-01-2009 at 11:19 PM.

23-01-2009, 05:01 PM	#2 (permalink)
*Brian Turner* Business Guru Join Date: Dec 2003 Location: Near Inverness, Highlands, Scotland Posts: 7,892	Re: Icelandic high interest accounts and currency? Isn't there a problem with converting Icelandic currency back into other currencies?? __________________ SEO specialist

27-01-2009, 02:52 PM	#4 (permalink)
*Brian Turner* Business Guru Join Date: Dec 2003 Location: Near Inverness, Highlands, Scotland Posts: 7,892	Re: Icelandic high interest accounts and currency? It's probably fair to say not many people appear to be rushing their savings to Iceland - I suspect there's a very good reason for this, not least in converting outside of Icelandic currency. __________________ SEO specialist

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