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.
There used to be a Bank advertising on Bankrate.com CD's at 8% last year plus when rates were at 5%. There website claimed they were part of a Swiss Bank yet Googling the Swiss Bank turned up nothing. The bank allegedly was in the Grenedines. When I called it I got a guy in his car on his cell phone. He told me he was the manager and they had just closed. I asked about the building and he said it was an office with only one teller since they did not do a lot of walk in business. Needless to say I persued it no furthur. Picture trying to track this outfit down.
Re: Dominican Certificates of Deposit
Well i gave the prince of Nigeria 2000 dollars and I'm still waiting for my 15 million.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jiggafied
Well i gave the prince of Nigeria 2000 dollars and I'm still waiting for my 15 million.
And here I thought I was the only one that got that email! lol
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
voltage69
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?
From what I've read here and on the internet, banks in the DR offer different rates on different types of accounts. For example, the 13-17% interest you were told about may likely be a peso account whereas the 5-6% mentioned above may likely be for dollar accounts. I've also read that the interest rate is tiered, meaning that the more you invest the higher the interest rate.
If I find anything else useful I'll come back here and post.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Train Kept a Rollin2000
From what I've read here and on the internet, banks in the DR offer different rates on different types of accounts. For example, the 13-17% interest you were told about may likely be a peso account whereas the 5-6% mentioned above may likely be for dollar accounts. I've also read that the interest rate is tiered, meaning that the more you invest the higher the interest rate.
If I find anything else useful I'll come back here and post.
Or, you can just go to the bank's website:
http://www.bancentral.gov.do/english...t_Certificates
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Train Kept a Rollin2000
From what I've read here and on the internet, banks in the DR offer different rates on different types of accounts. For example, the 13-17% interest you were told about may likely be a peso account whereas the 5-6% mentioned above may likely be for dollar accounts. I've also read that the interest rate is tiered, meaning that the more you invest the higher the interest rate.
If I find anything else useful I'll come back here and post.
And where are they getting the money to pay 17%. Maybe printing it?
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
husl2001
WOW! And it's in English!!! Thanks!!!!
Re: Dominican Certificates of Deposit
I am on the site now thanks
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
And where are they getting the money to pay 17%. Maybe printing it?
Who cares? As long as I get my interest payments every month, I'm a happy camper.
Did I ever tell you I had one of the 30 month CD's that paid 52% per annum?
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
MrHappy
Who cares? As long as I get my interest payments every month, I'm a happy camper.
Did I ever tell you I had one of the 30 month CD's that paid 52% per annum?
Thats what they said before they lost all their money with the prior President. Thats what they said with Madoff, until the shit hits the fan and all is lost.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
Thats what they said before they lost all their money with the prior President. Thats what they said with Madoff, until the shit hits the fan and all is lost.
Madoff had his own 'proprietary trading system', or so he used to say... :rolleyes:
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
Thats what they said before they lost all their money with the prior President. Thats what they said with Madoff, until the shit hits the fan and all is lost.
Who exactly lost their money under Hippolito? If you are referring to BanInter EVERY deposit, small and large, was paid back in full, thus being a main cause of the financial crisis here in 2003/4. No-one lost any money.
I also remember during the same period my Banco Central CD's at 60%+. Interest is paid monthly and they have NEVER failed to pay or been late with a payment.
IMO the only risk you have is exchange rate fluctuations. I bought my 1st Banco Central CD in 2003 at 35:1, cashed out this year at 35:1 so 7 years
with no capital loss but enjoyed between 35,000-75,000 pesos per month every month for those 7 years.
Also you could look at it as a social security program. The DR govt pays me, I pay the chicas, they use the money to pay their bills. No need for direct Govt assistance.
Perfect win-win situation!!!
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
WickedWillie
Who exactly lost their money under Hippolito? If you are referring to BanInter EVERY deposit, small and large, was paid back in full, thus being a main cause of the financial crisis here in 2003/4. No-one lost any money.
Is that a fact? I believe 10 Billion was lost or stolen.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
Is that a fact? I believe 10 Billion was lost or stolen.
Yes, it is a fact that depositors, large and small, got their money back. They were paid out by Hippo's govt thus leading to the DR financial crisis of 03/04 and there were some very large amounts (multi-million US$)being paid out. No FDIC limits here.
The executives without doubt embezzled huge amounts. Some have been subsequently convicted. Not sure if any served time or paid the $$$ back.
Re: Dominican Certificates of Deposit
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
WickedWillie
WOW!!!
great read!!!
Re: Dominican Certificates of Deposit
:iconTU:great info all around here. Wish I knew more about the Hippolitto (sp?) situation just for historical perspective.
Having already invested money in other countries in the past and currently. I too had some interest into some DR cd's but not without some prudent background work. But like most have already said, nesting these type of things over some years is beneficial.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
And where are they getting the money to pay 17%?
Jimmy, you have spent enough time in the DR to know that money is typically lent out at 10% interest per month or 25% interest per quarter. This is by established "respectable" lenders, including one who is often mentioned on this board. (Street-corner loan sharks lend at much higher rates).
Also substantial security is required against such loans, typically property or goods worth at least double the amount of the loan, so even if property and commodity prices fall the lender is well covered if the borrower defaults.
That sort of income would comfortably allow the finance house to pay 17% per year to gringo investors. I am not saying there is not a considerable amount of risk or that people should invest anything they can't afford to lose, but at least the above explains how finance houses can go on paying that sort of interest year after year, in some cases for a couple of decades.
The mystery is why there is a continuous stream of Dominicans wanting to borrow money at such exhorbitant rates of interest, but no doubt the infamous Dominican short-sightedness and misplaced optimism has a part to play, as well as more murky issues of criminality and money-laundering.
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
Jimmydr
Thats what they said before they lost all their money with the prior President. Thats what they said with Madoff, until the shit hits the fan and all is lost.
If our MN Buddy Tom Petters verdict comes in innocent tomorrow I could probably get you 20% and up for high enough amounts as long as they allow him to keep at least one of his planes from Sun Country Airlines. :lol::lol::rofl:
Re: Dominican Certificates of Deposit
Quote:
Originally Posted by
weyland
The mystery is why there is a continuous stream of Dominicans wanting to borrow money at such exhorbitant rates of interest, but no doubt the infamous Dominican short-sightedness and misplaced optimism has a part to play, as well as more murky issues of criminality and money-laundering.
Historically it has been horrendously difficult for the average Dominican to get loans through the more traditional routes like banks.
Bank interest rates have been at a par with finance houses and the time from loan application to approval to actually getting the money has been from between 6 -15 months.
Compare that to getting the money virtually immediately and there is your answer.
In the last couple of years or so the banks have lowered interest rates significantly and have improved the loan process times.
Even with this the finance houses will continue to thrive as many Dominicans will never be able to get loans from banks as the collateral they can put against a finance house loan is of no interest to the banks.