A deposit held in another country's currency
A foreign currency deposit converts your money into another currency and holds it there. Interest rates differ by currency, and some pay more than your own. You pay a conversion cost going in and coming out, and the rate on the way back can matter more than the interest. Whether it is covered by deposit insurance depends on the country.
Even at 4% interest, a 5% strengthening of your own currency leaves you with less than you put in.
Japan — In Japan foreign currency deposits are not covered by deposit insurance.
South Korea — In Korea foreign currency deposits are covered too, together with won deposits, up to ₩100 million per person per institution (since 1 September 2025).
For learning, not investment advice. Decisions are your own.
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