DCD full Form in the banking industry is dual currency deposit. It’s a type of banking product that lets you store your money in one currency, but with an added benefit, you have the opportunity to earn interest, or receive your principal back in a completely different currency. It’s similar to having a savings account which plays the game with two currencies at the same time. DCDs are ideal for those who have a knack of being able to predict which way the currency winds will go. Let’s say you put your money into the currency you’re used to using everyday, but decide to receive your earnings in a different currency that appears robust or stable. You’re placing a bet on a currency exchange.
What Other Things Should You Be Educated about DCD?
What’s the deal with DCDs is that they could be a goldmine with better returns compared to typical deposit accounts, particularly when currencies are dancing the tango. If your hunch about currency pays off and you see your earnings in the currency that is flexing more which could boost your interest rate or playing the game as compared to when you’d kept your cash in the local currency. Furthermore, incorporating DCDs in your portfolio of investments adds a bit of spice and you can experiment with various currencies.
