commission on interest of cash deposits of foreign investors


I live in a country, Australia, where I can get upwards of 5% interest per annum on cash deposits held in a bank account. Having parents-in-law who live in a country, Japan, that offers about 0.02% interest per annum, I see opportunity. In fact, we know someone who banks a lot of her parents savings here to get a higher interest rate and it works out well for them.

My question is, how do I start up this as a service to people in Japan? Has anyone had experience doing this? We visit the country regularly, love it, and have some small connections.

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asked Jan 27 '12 at 23:21
5 points
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2 Answers


This isn't going to work. You are planning to take JPY (or any other foreign currency), convert it into AUD, deposit into an Australian bank, collect interest in AUD, withdraw AUD, and convert it into JPY (or any other original currency). The one thing you forgot is that exchange rate changes over time to offset interest, inflation, and a bevy of other factors. If it were so easy as you think it is, there would be thousands of people doing it.

In the end, you are likely to have more JPY than what you had originally. However, because of the exchange rate, your actual gain will be much smaller than 4.98% (it'll be 1-2% at most), which means you need to manage millions to make some money for yourself.

When it comes down to financial management, you need licenses, accreditations, and other paperwork that takes a lot of time. So by the time when it's all ready to go, many other things impacting interest & exchange rates will have happened.

answered Jan 28 '12 at 00:55
1,963 points
  • Not only do exchange rates vary (so it is possible to lose money on the transaction), but those currency conversions actually **cost** money. Figure at least 1% each way. – Gary E 11 years ago


My question is, how do I start up this as a service to people in Japan?

To take money from people and pay them interest? Simple - register a business, apply for a banking license.

This will show you fast that you need a couple of million USD and a board that knows what it is doing. Minimum. And follow a ton of regulations.

answered Jan 27 '12 at 23:35
Net Tecture
11 points
  • you're absolutely sure I need to apply for a banking license? I see little point for this purpose alone. I suppose I could approach someone who has a banking license... – Angus 11 years ago
  • If YOU take the mony...very likely. If you only run around with bank papers you run into other trouble. But yes, taking money into accoutns and paying interest and investing the moeny is waht banks do. "someone who has a banking license" wont deal with you. – Net Tecture 11 years ago
  • hhmmm, so I suppose not having a banking license, the best I could do is say to a bank, "I have x amount of people wanting to deposit funds to receive interest. Will you offer a commission if I give these to you"? – Angus 11 years ago
  • Yes, but then why should a japanese bank help you get rid of their custoemrs? and an australian bank will need a japanese banking license. Plus it would only do that professionally in larger amounts, so you are not anything else than a nuisance again. – Net Tecture 11 years ago
  • Get over it - banking and finance is not the area to jsut play around with a smart idea unless you have the funds to follow through. – Net Tecture 11 years ago
  • My intention wouldn't be to get rid of a japanese bank customers, just allow them to transfer an amount, and then redeem it to their original account after interest has accrued. – Angus 11 years ago
  • let us [continue this discussion in chat]( – Angus 11 years ago

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