Bank CD's Interest Rate

[wayne]

Today, Banco Leon situated in La Sirena, Puerto Plata offering 11.25% for a 7 year CD (CD is 'shared' with Banco Central). Interest is paid 6 monthly, of course the CD is in Pesos.

This morning I was offered 12.5% at Banco Leon in Sosua for the 7 year CD.

 

[every3monthpuntacana]

10% tax

Anyone knows if the 10% tax is as good as a done deal and will it also apply to CDs of non-residents?

 

[j&t's future]

I think the 10% tax (on the interest) will affect anyone who has a CD, resident or not! As SKY mentioned earlier, if you accumulate less than $240,000RD per annum in interest, you will not pay tax.
Does anyone know when the banks will start implementing the Tax on those who have more than the threshold amount?

 

[yapask1]

This morning I was offered 12.5% at Banco Leon in Sosua for the 7 year CD.

The peso has moved from 34 to the dollar to 40 to the dollar in the last 18 months 15% or so devaluation so 12.5% per annum does not so good. A mutual fund demoninated in dollars investing in developing country bonds has returned 9% in the last 10 months.

yapask1

 

[j&t's future]

I was asked to remove post.

Apologies

 

[yapask1]

The peso has moved from 34 to the dollar to 40 to the dollar in the last 18 months 15% or so devaluation so 12.5% per annum does not so good. A mutual fund demoninated in dollars investing in developing country bonds has returned 9% in the last 10 months.

yapask1

Sorry typo should be 48 months for these figures approx. People could do due dilligence on options since performance of mutuals is shown by this example. This is the same asset class but spread around different countries and you can get out at any time at one days notice.

There may be ETF's with similar performance.

Typical fund - I can't advertise according the rules.


International developing country bond fund. 0% up front investment fee.
Dollar fund.


YTD 17.95 0.49
3 Years Annualized 17.22 -0.64
5 Years Annualized 11.22 -2.00
10 Years Annualised 8.25 -0.95

On mutuals I would think tax would not apply

yapask1

 

[Richard Alberto]

would that be doubled taxed, by the IRS and also in DR?

 

[j&t's future]

Richard, let him live in his 'own LITTLE world', he's on a different planet. Try not to involve him in anything, TOTAL BS is all that comes from his mouth/keyboard.
EVERYONE is sick to death of him.