Bank CD's Interest Rate
I haven't found any information on the forum about the interest rate of CD's in the Dominican Republic. This seems like it could be the easiest way to retire with little money. What interest rate could you expect to recieve from the banks today? How safe is it? Seems like it would be better than risking investment in Real Estate. Anyone with experience?
a friend of mine invested 10,000,000. RD in a 1 year certificate and is receiving 12 1/2 percent. to answer your question about how safe it is, you have to take that with a grain of salt. you just never know what could happen here.
Originally Posted by third
You get very attractive interest for investments in RD, not USD. In other words, you are carrying the currency conversion risk. But if you time box it like ricky11's friend did you can make some nice coin.
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I have been reading extensively on DR monetary policy such as it is, but it seems they are in earnest attempting to keep a handle on inflation, although this may be an election-related issue. They are back in business with the IMF, whose opinion is that the DR is one of the most stable overall packages in Latin America.What this means I dont know, to me it means I would be comfy with a 1-2 year lock, but no more.
Rates appear to be negotiable depending on bank, manager, location. Perhaps Ricky11 can share with us the location, bank, and manager of this friend's contract, would be helpful. I have an amount I would like to park on a one year lock. Someone said the one year contracts are sold out, however.
Can we have some opinion on the location-dependent aspect of interest rate, and on duration of contracts, etc. ... gracias...
assoc. popular (not to be confused with banco popular) is located in colonial zone on street that leads to plaza espana--near banco reserva. interest rate depends on amount deposited.
Originally Posted by Dmason
You haven't been "searching" too hard. There's lots of info on here. I've been posting monthly investment bulletins on here for the last few months.
Originally Posted by third
Oh, and to clarify things a bit..... You cannot buy Banco Central CD's any more.
The banks have gotten into the CD business. They got tired of missing out on all of that money being paid directly to certificate holders, without getting their share.
Now, you have to go to a bank, and buy "shares" of a larger CD that was previously purchased by that bank.
Interest is paid every six months now.
The mature date of the CD that you're buying shares of dictates how long you wait before you get you interest payment.
So, if you buy shares of a CD that just made it's six month payment, you have to wait six months before you get your interest payment.
If you buy shares in a CD that paid it's interest 2 months before, then you have to "pay" 2 months of interest back to the bank, but then you get your full interest payment in 4 months(or whatever time frame is left on your shares till the next payment)
You don't get a paper "Certificate" any more like you used to get from Banco Central. Now, you join Cevaldom and log in to see the status of your shares.
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So Cavaldom is the institute that administers BC, CDs if I understand this correctly. Private banks, of course, offer their own CDs.
You seem to know your stuff. What bank would you suggest for someone who wanted to open an account for one of these "certificates" payable in Pesos?
Originally Posted by JDJones
Myself, I like Banco Popular. But you should shop around with other banks to see what rate you get.
Originally Posted by sanluisdavid
You may find another bank that has a smaller "commission" on the CD, and pay you more interest.
BAN RESERVAS 2percent on cd, Santo Cruz same 2+ cd