Dominican Certificates of Deposit
Does anyone have any experience with dominican CD's in the banks? I was speaking with an ex pat who lives there now while i was over there and he was telling me they give rates between 13-17% in the banks there beacause they use the money to lend to the people and they charge the people like 50% interest on loans. If anyone has opened one of these cd's, how did it go? I even saw a sign outside a bank in cabarete boasting 10% on a short term cd. any info?
Re: Dominican Certificates of Deposit
The Ex President stole 10 Billion Dollars, from one of these banks and most of the people got nothing.
Re: Dominican Certificates of Deposit
An expat was telling me the samething but when he took someone down to open one they were only offering 5-6% because the US fed rate is only 0.25% and the DR rates vary with the US rates in general. I guess 6% is good relative to what you get with treasuries but when you factor in what Jimmy said and the exchange rate/country risks, not sure how good of a bargin it is unless you live there.
Let us know what you find out.
Re: Dominican Certificates of Deposit
Thanks for the info. I have someone else looking into it too. Said he has friends that do it, but he personally doesn't. will let you know what he reports back from them.
Re: Dominican Certificates of Deposit
If you buy CD's in private banks, there is a risk that the bank could go under. There have been a few high profile cases here where bank owners ran off with the loot, as jimmy mentioned.
However, a CD in the Gov't bank, Banco Central, is not going to have that problem.
The rates were at 18% for 36 months in December, now they are substantially lower, and were lowered again last week.
Re: Dominican Certificates of Deposit
As of September 3rd, the Central Bank offers 8% on 36 month term CDs, evaluated in pesos. Interest is paid monthly, not compounded.
Re: Dominican Certificates of Deposit
well 8% is better than 2.. but then again a mutual fund here might do better at this point
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
terrierist
As of September 3rd, the Central Bank offers 8% on 36 month term CDs, evaluated in pesos. Interest is paid monthly, not compounded.
But without having oil or anything else of real value, you can loose your money one day.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
But without having oil or anything else of real value, you can loose your money one day.
Damn feels kind of like you can lose your money anywhere, ask one Mr. Bernie Madorf about that! I think his new address (if you are interested in contacting him) instead of the penthouse on Park Ave. (where he used to live) is now a Federal Prison!
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
yayow
Damn feels kind of like you can lose your money anywhere, ask one Mr. Bernie Madorf about that! I think his new address (if you are interested in contacting him) instead of the penthouse on Park Ave. (where he used to live) is now a Federal Prison!
In general, people are greedy. If you offered a return of say 20% today, you would be handed millions overnight.:eek:
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
The Ex President stole 10 Billion Dollars, from one of these banks and most of the people got nothing.
Jimmydr shits on everyones parade. The hard truth! No candy coating! Thanks! I was almost interested.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
SrSuerte
Jimmydr shits on everyones parade. The hard truth! No candy coating! Thanks! I was almost interested.
No guts, no glory...
I've got BC CD's, and have done very well, thank you.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
MrHappy
No guts, no glory...
I've got BC CD's, and have done very well, thank you.
Sometimes you have to think abput why they are giving what they are giving, unless of course you don't mind going back to work at age 90.:eek:
Re: Dominican Certificates of Deposit
well from what the ex-pat was telling me, the DR banks loan to the people there at like 25% for lets say.. a new refrigerator or a bed for the family. so thats how theyre making their money. but they need the money to loan.
Re: Dominican Certificates of Deposit
It's not that high now, but there was a time.. obviously, banks will always have higher interest on their loans to you, than what they pay on your investments.
But, as an example, I get 18% on my 3 yr CD's. whereas new CD's are paying much less now.
I could easily live on the income from my CD's if I wanted to, but instead, have them pay my mortgage every month.
My mortgage, BTW is at 13%.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
MrHappy
It's not that high now, but there was a time.. obviously, banks will always have higher interest on their loans to you, than what they pay on your investments.
But, as an example, I get 18% on my 3 yr CD's. whereas new CD's are paying much less now.
I could easily live on the income from my CD's if I wanted to, but instead, have them pay my mortgage every month.
My mortgage, BTW is at 13%.
How does that work? One guy gets 18% on his 100M and you pay 13% on your 100M.
Looks like the bank is loosing 5%?
Re: Dominican Certificates of Deposit
If you look at the history of CD offerings, you'll see they have gone up and down. I bought when they were high, and got the loan from the bank when they were low.
Simple.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
MrHappy
If you buy CD's in private banks, there is a risk that the bank could go under. There have been a few high profile cases here where bank owners ran off with the loot, as jimmy mentioned.
However, a CD in the Gov't bank, Banco Central, is not going to have that problem.
The rates were at 18% for 36 months in December, now they are substantially lower, and were lowered again last week.
It sounds like a goood safe investment if you use the Central Bank, if I'm reading this right. I am thinking of putting a little money in , on my next trip to see how it goes?
Re: Dominican Certificates of Deposit
I was thinking the same thing if you use the Central Bank shit I need to get out of here!
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
MrHappy
If you look at the history of CD offerings, you'll see they have gone up and down. I bought when they were high, and got the loan from the bank when they were low.
Simple.
Timing in life is everything! Do your homework and get in at the right time and get out at the right time, by the way that is the history of the U.S. stock market too, look it up!:eek: