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In the United States, not many banks offer foreign-currency savings account at consumer level. This is in total contrast to many other countries. For instance, in Hong Kong, consumers can choose from at least a dozen different currencies at their local bank branch.
The reason why many people are looking for foreign savings account is the higher interest rate. Several foreign savings accounts offer higher than the 2 to 3 percent rate that many US certificates of deposits offer. For example, the going rate for an account of Australian dollars is more than 4 percent while that of New Zealand dollar is around 5 percent.
The other benefit of having foreign savings account is the potential to make a lot of money should the foreign currency rise in value in relation to the US dollar. This is especially true in the last few years where the US dollar is seeing a steady slump.
If you have a foreign savings account, you will have to federal taxes just like any other savings account. Any earning from currency appreciation is treated as capital gain when converted into US dollars. However, you can delay paying capital gain tax by rolling over the gain back into the account rather than withdrawing it.
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You may have heard a lot about high interest savings account but you might have also heard that it can be quite dangerous if the financial institution is not authentic. The highest rates for high interest savings account are offered by some legitimate and well-known banks in the United States including HSBC, Wells Fargo and ING. 
