Banking Questions ??? Need info !!

[freekofweek]

If an American was interested in opening a bank account in the DR, which banks are considered the MOST safe ?? I am sure they have no gov't insured banks but I am lured by the CD rates. I have been told that 18% on a CD is easy to obtain ? Can any individuals living in the DR give me advice? My Dominican friends are not well versed in the DR financial world !!
What are the current interest rates for CD/s ?

90 day
180 day
365 day
Also, is it better to keep $$$ in dollar accounts or pesos ?????

thanks !!!!!!!!!!

[mountainfrog]

Originally Posted by freekofweek

... My Dominican friends are not well versed in the DR financial world !!

Well, not even Jorge?

Originally Posted by freekofweek

Jorge ... already has over $45,000 us dollars in CD's so I would say that in 11 years, he will be very, very, wealthy compared to the average Dominican male. 18% is a very good return on your CD investment as your investment will double every 4 years. Hope this answers your question.....

[Tamborista]

You ain't getting 18% on a USD based account these days.
I know 10% - 12% is feasible at a private finance house on higher balances.

[HOWMAR]

Originally Posted by freekofweek

If an American was interested in opening a bank account in the DR, which banks are considered the MOST safe ?? I am sure they have no gov't insured banks but I am lured by the CD rates. I have been told that 18% on a CD is easy to obtain ? Can any individuals living in the DR give me advice? My Dominican friends are not well versed in the DR financial world !!
What are the current interest rates for CD/s ?

90 day
180 day
365 day
Also, is it better to keep $$$ in dollar accounts or pesos ?????

thanks !!!!!!!!!!

You don't seem to appreciate that the rate quoted (18%) is the return on pesos invested. The rates for dollar accounts is closer to the 3% range. In a previous post you state that the money invested at 18% will double every 4 years, which is true, but in the past 4 years, the peso has devalued from around 18/dollar to the present 33/dollar. So your $1000 US converted to pesos and invested 4 years ago is now worth $ 1090. US. A 2-3% return.

[MrMike]

And allowing for inflation, according to the calculator at this link your original 1000 now has the buying power of about 906 dollars with the interest earned over four years ALMOST covering your losses.

[zak023]

Here's an example for you...I opened a US$ account in March with $2,500..I let the money sit for 6 months and went to the bank last week in SD to make another deposit..My interest gained in 6 months was only $5.19 USD..That was with Popular..As far as CD's go you cannot buy them with USD..You must convert the dollar to pesos..Then you will get 10% for 180 days..The most you can deposit is $10,000..So if you are thinking about living off your interest I hope rice and beans every day is acceptable to you..If it was that easy to make money in the DR everyone would be doing it .That is why they have it capped at $10,000..You will make $1,000 for 180 days..and $1,200 if you keep it in a 365 CD...Hope this helps...

[MrMike]

Originally Posted by zak023

Here's an example for you...I opened a US$ account in March with $2,500..I let the money sit for 6 months and went to the bank last week in SD to make another deposit..My interest gained in 6 months was only $5.19 USD..That was with Popular..As far as CD's go you cannot buy them with USD..You must convert the dollar to pesos..Then you will get 10% for 180 days..The most you can deposit is $10,000..So if you are thinking about living off your interest I hope rice and beans every day is acceptable to you..If it was that easy to make money in the DR everyone would be doing it .That is why they have it capped at $10,000..You will make $1,000 for 180 days..and $1,200 if you keep it in a 365 CD...Hope this helps...

I really hope I'm wrong, but it seems to me there are so many things wrong with this post I don't know where to start.

[zak023]

Originally Posted by MrMike

I really hope I'm wrong, but it seems to me there are so many things wrong with this post I don't know where to start.

What doesn't seem correct with my post? I am looking at my bankbook right now..So the interest gained is correct..Is it the ammount you are allowed to invest in a CD..Because then I would be happy to be given the CORRECT info.I am looking at the CD rate chart right now..Feel free to say what you think is wrong with the info I posted...

[gary short]

Thank God I thought I was hallucinating.

[Tamborista]

Originally Posted by zak023

Here's an example for you...I opened a US$ account in March with $2,500..I let the money sit for 6 months and went to the bank last week in SD to make another deposit..My interest gained in 6 months was only $5.19 USD..That was with Popular..As far as CD's go you cannot buy them with USD..You must convert the dollar to pesos..Then you will get 10% for 180 days..The most you can deposit is $10,000..So if you are thinking about living off your interest I hope rice and beans every day is acceptable to you..If it was that easy to make money in the DR everyone would be doing it .That is why they have it capped at $10,000..You will make $1,000 for 180 days..and $1,200 if you keep it in a 365 CD...Hope this helps...

You, my friend are clueless.

Banco Central de la República Dominicana