Re: certificados de depositos

J

J. Schroder

Guest
Re: certificados de depositos

Rafael,

Current Bank Account / Investment Rates are as follows:

US $ Savings Account: About 3-4% Depending upon the bank (not all banks offer US Dollar Accounts)

US $ Checking Accounts are not currently available, but obtaining a US Dollar check drawn off a US based correspondent bank is not an issue (should you wish to make a withdrawal and obtain a US $ check)

US $ Bank Certificates of Deposit: About 7% to 8% depending upon the bank. Minimum is usually US $ 5,000 or $ 10,000 starting with a 90 Day term.

US $ Commercial Paper (90 Days): Anywhere from 10% to 12% , interest is paid monthly.

Peso Savings Accounts: About 7%, depending upon the bank.

Peso Bank Certificates of Deposit: From 14% to 18%, again depending upon the bank, time, and amount invested.

Peso Commerical Paper (90 Days and longer): Up to 23% currently, interest is paid monthly.

Bank Account interest (including CD's) are free from local income taxation in the Dominican Republic. In addition, US $ denominated investments (including commercial paper) are considered to be "Offshore Investments", and as a result are also free from local taxation.

Interest Rates in the Dominican Republic are generally "tiered" according to amount invested and time. As an example, you will find a better rate for a US$ 50,000 90-day investment than you would a US$l0,000 investment for the same time horizon. An investment of RD$1,000,000 (Pesos) will yield a higher return than a RD$ 50,000 investment for the same term.

Since most banks are in reality taking investors CD money and buying local commercial paper, for the higher returns, you may wish to purchase commercial paper directly yourself.

John Schroder Ascot Advisory Services Santo Domingo <A HREF="http://www.ascotadvisory.com">http://www.ascotadvisory.com</A>
 
R

rafael castro

Guest
Re: certificados de depositos

first i d like to thank you for that information. i also have another question about reinvesting the money after the 90 day term is up.

is it posible to reaply for that 90day term again and again to reek the benifits of the higher interest?

also whatis the spanish term for the 90 day paper account?