opening a bank account

steve2011

New member
Apr 5, 2011
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Hi, I am living in CA and plan coming to Sosua end this year for vacation. I would like to invest US$40k in a 5 year CD. Here are my questions:

- what do I need to open a bank account in Sosua?
- can I actually do it while on vacation (3 weeks)?
- what is the best way transferring money from US to DomRep? wiring money, bringing cash, several smaller transactions?
- do I need to pay taxes on the interest? Will the DomRep bank report it to the IRS?
- what is currently the interest for this kind of CD?
- what is the best bank for this transaction?

Since I plan to live there in a year or 2, I don't mind getting the interest in pesos.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
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South Coast
First of all, you should know that you cannot bring $40K into the DR on your person unless you're looking for big trouble. You can only wire it. To wire it you have to have an account there first, in either dollars or pesos, your choice.

Americans are supposed to pay taxes on any earnings anywhere in the world. I don't think DR reports it to the US.

Important to remember that there's no FDIC insurance there......

Take baby steps, open the account this trip, then wire the $ right before you come back next time. Opening a CD at a bank is fast and easy. Rates vary with different banks.

AE
 

Hillbilly

Moderator
Jan 1, 2002
18,948
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There are CD rates and then there are CD rates.
There are ads in the papers offering 15% and up for Central Bank notes. I don't have money to put there, but I am betting someone on this board does.

You do need a letter of reference from you home bank. You need a letter of reference from someone who is a client at the bank where you intend to open an account. You need your passport. With these papers and documents you should be able to open your account.

Go slowly. Get a feel for the waters first. Remember the old adage: Not all the eggs....

And the Dominican story: How to make a million in the DR? Arrive with 2 million!!!

HB
 

BigLongBeach

New member
Feb 8, 2010
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First of all, you should know that you cannot bring $40K into the DR on your person unless you're looking for big trouble. You can only wire it. To wire it you have to have an account there first, in either dollars or pesos, your choice.

Americans are supposed to pay taxes on any earnings anywhere in the world. I don't think DR reports it to the US.

Important to remember that there's no FDIC insurance there......

Take baby steps, open the account this trip, then wire the $ right before you come back next time. Opening a CD at a bank is fast and easy. Rates vary with different banks.

AE

The banks are insured by the central bank.

OP, do your research diligently. You can make your investment in dollars if you wish. If you choose to do it in pesos do research on the volatility of the exchange rate. You dont want to invest 40k at 38-1 and a year later withdraw it at 39-1. That would be more than a 40k peso loss.

There are many options out there. I recommend using google search to get a list of banks. Then seeing what the wire transfer fee is to each, and what type of investment opportunities each has.

As AE said do not do the transfer until you leave. You do not want anyone knowing you are a walking ATM.
 

AJL6767

New member
Apr 14, 2011
299
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The central bank no longer sells certificates directly. Only to the banks in volume. it works this way.. bank A buys 100 Million in certificates that pay ( example ) 15 %.. If they have clients that need to borrow 100 Million or any part of it, they may put the certificates up for sale at par + a fee for % differences in the market. Then they lend at 18-20 %. The certificates have become a holding area for the banks, that guarantees them a minimum amount of base profit.
 

kimbjorkland

New member
Apr 6, 2011
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I'm confused about the availability in $USD for the same rate of return?

Surely these returns are only available in DOP? otherwise...uhm...
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
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I'm confused about the availability in $USD for the same rate of return?

Surely these returns are only available in DOP? otherwise...uhm...

You will not even get 2% on USD at any financial instituion in DR.
Any CD with those kind of rates are in $RD.
 

vmhatup

Member
Aug 18, 2009
656
10
18
I did notice that they have two types of 'investments', if you can call it that: activas y pasivas.

I assume that 'plazo de 0-90 dias' is similar to a 3-month CD, so my interest rate is 16%? Is that how this works?
Are these activas like ETFs and that's why the interest rate is so much higher than pasivas?