hiscosmicgoldfish3
New member
I am a US citizen but my parents are elderly Japanese citizens living in Japan. From what I read, it seems for ultra low risk “investment”, it would be reasonable for funds unlikely to be needed for at least 1 year to be placed in something like 10-year Japanese treasuries. Assumptions/understanding:
- Banks/CDs basically provide minimal interest. Also has 10million yen deposit insurance limit per account.
- Japanese treasuries can be returned to the government after 1 year to get principal back, with a forfeiture of ~80% of one year’s interest
- Japanese treasury is at least as safe as deposit insurance
Is there anything major I’m missing? It seems unlike US treasuries, there is no risk of early redemptions losing principal value due to increase in interest rates?
Thanks in advance, and hopefully this is generic enough of a Q to be allowed in this sub.
- Banks/CDs basically provide minimal interest. Also has 10million yen deposit insurance limit per account.
- Japanese treasuries can be returned to the government after 1 year to get principal back, with a forfeiture of ~80% of one year’s interest
- Japanese treasury is at least as safe as deposit insurance
Is there anything major I’m missing? It seems unlike US treasuries, there is no risk of early redemptions losing principal value due to increase in interest rates?
Thanks in advance, and hopefully this is generic enough of a Q to be allowed in this sub.