⮪ GuidesUpdated 2/19/2025 - 7 min read

Savings and Investments

Savings and investments are crucial for financial security and wealth building. In Taiwan, with its dynamic economy and growing financial market, individuals have many options to grow their wealth. This guide outlines the most common savings and investment strategies, the steps to set them up, and how to invest in foreign stocks through international brokers.

Savings Account

Savings are key for short-term financial security and emergencies. Taiwan offers various ways to save money, each with different features, benefits, and steps to set up.

Bank Deposits

Bank deposits are simple, low-risk savings options for Taiwanese residents. The process for setting up a savings or fixed deposit account is straightforward and can usually be done online or at your local bank branch.

Steps to Set Up Bank Deposits in Taiwan

  1. Choose a Bank: Select a reputable bank such as Taipei Fubon Bank, CTBC, or Bank of Taiwan. Ensure that the bank offers the right deposit product for your needs, such as a fixed deposit or high-interest savings account.
  2. Prepare Documents: You will typically need your National ID card, household registration certificate, proof of address, and your mobile phone number for online banking setup.
  3. Open an Account: Visit the bank in person or use their online services to open your account. Choose the deposit type (e.g., fixed or high-interest savings account) and the duration if applicable.
  4. Deposit Funds: Transfer funds from your current account or deposit cash into your new savings account.
  5. Monitor and Adjust: Regularly review the account to ensure you're receiving the best interest rates. Consider setting up automatic transfers to continue growing your savings.

Government Bonds

Investing in government bonds in Taiwan is simple, as these bonds are considered low-risk and are backed by the government. Investors can purchase them through banks or directly from the government.

How to Start

  1. Identify Your Bond Type: Taiwan offers various government bond types with different durations and returns. You can choose between short-term treasury bills or longer-term bonds with higher returns.
  2. Visit Your Bank or Online Platform: Most banks provide a platform for purchasing government bonds, or you can visit the Taiwan Treasury's official website for direct purchases.
  3. Complete the Purchase: Select the amount and duration of the bonds you want to buy. For most investors, a bank or financial advisor can guide you through this process.
  4. Monitor Your Investment: Stay updated on the interest rates and maturity schedules for your bonds. You will receive interest payments periodically and the principal back when the bond matures.

Investments

Investing in the stock market, mutual funds, and real estate can provide higher returns than savings products. However, these investments come with increased risks. Below are detailed steps on how to set up these investment strategies in Taiwan.

Stock Market

Investing in Taiwanese stocks can offer strong growth potential, but it requires understanding market conditions and selecting the right companies.

How to Start

  1. Choose a Brokerage Account: To buy Taiwanese stocks, you need to open a brokerage account. Popular brokerage firms in Taiwan include Yuanta Securities, Fubon Securities, and CTBC Securities. Most brokers offer online platforms for easy access to stock trading.
  2. Submit Required Documents: Prepare your National ID card, household registration, and proof of address to complete the account opening process.
  3. Deposit Funds: Transfer funds into your brokerage account. Ensure you understand the fees and commissions charged for transactions.
  4. Research Stocks: Conduct research on Taiwanese companies listed on the Taiwan Stock Exchange (TWSE) and decide on which stocks you want to invest in. Consider factors like market trends, company performance, and future prospects.
  5. Execute Your Trade: Use the brokerage platform to place buy or sell orders. Monitor your investments and adjust your portfolio as needed.

Investing in Mutual Funds

Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets. They are ideal for investors who want professional management of their funds with lower risk than individual stocks.

How to Start

  1. Choose a Fund: Taiwanese banks and brokerages offer a wide range of mutual funds. You can choose funds focused on equities, bonds, or a mix of asset classes.
  2. Open an Account: Similar to stock investments, you will need to open an account with a brokerage firm or bank that offers mutual fund investment options.
  3. Make a Deposit: Transfer funds into your mutual fund account. Some funds may have a minimum investment amount.
  4. Purchase the Fund: Select the mutual fund you wish to invest in and place your order. Keep track of your fund's performance and consider rebalancing your portfolio as needed.

Real Estate Investment in Taiwan

Real estate investment in Taiwan, especially in urban areas like Taipei, has traditionally been a strong option for wealth accumulation. However, it requires substantial capital and a good understanding of the property market.

How to Start

  1. Identify Property Type: Decide whether you want to invest in residential, commercial, or industrial properties. Research local areas to find high-demand regions with growth potential.
  2. Secure Financing: Depending on your capital, you may need to secure a mortgage loan from a Taiwanese bank. Make sure to shop for the best loan rates and terms.
  3. Work with a Real Estate Agent: A licensed real estate agent can help you find suitable properties and negotiate prices. They can also guide you through the legal and regulatory processes.
  4. Close the Deal: Once you've found a property, work with legal professionals to handle contracts and ensure compliance with local regulations.

3. Trading Foreign Stocks

For investors in Taiwan who want to expand their portfolios internationally, trading foreign stocks can be a great option. Several foreign brokers offer platforms that allow Taiwanese investors to trade stocks listed on international exchanges such as the New York Stock Exchange (NYSE), Nasdaq, and others.

How to Start

  1. Select a Foreign Broker: There are several foreign brokers that cater to Taiwanese investors, including:
    • Interactive Brokers: Offers access to global markets, low fees, and a wide range of investment products.
    • TD Ameritrade: A popular broker for trading US stocks, offering a user-friendly interface and strong research tools.
    • Charles Schwab: Another US-based broker that allows international investors to trade US stocks with minimal fees.
    • Fidelity Investments: Offers global access to a range of stocks, ETFs, and bonds with strong customer service.
  2. Open an Account: Once you've selected a broker, visit their website and complete the online account opening process. You will need to provide identification, proof of address, and possibly a tax identification number.
  3. Deposit Funds: Deposit funds into your foreign brokerage account. Most brokers accept wire transfers, but it's important to understand the associated fees and exchange rates.
  4. Research Foreign Stocks: Use the broker's tools to research stocks on global markets. Consider sectors, market trends, and the financial health of the companies you're interested in.
  5. Place Your Trade: Once you've identified the stocks to buy, place your order via the broker's platform.