Bank CD's in US dollars

Reputable bank offering me 90 day USD CD's at 11%. Rate seems too good to be true. Know that DR banks not federally insured as in US, but large bank CD's must be relatively safe. Right? Are all DR banks offering high rates like this in USD? How can DR banks pay so much more than in US and elsewhere? Any other potential problems to look out for? Thanks for any input!!!

11% sounds pretty good considering CD's in pesos average 14 to 20.

The higher rate is partially due to the "supply + demand" principle. If there are less $ available, the price (interest) is of course higher.

at month end imports are being paid to the US in usd . this is no issue in summer or at year end as there is a lot of people coming into the country who exchange dollars. However in ' regular' months ' outside of the touristic pics ' there are opportunity to get good interest from the banks or even better from imports company in needs of foreign currencies. Nothing to worry about , no tricks

Yes, this IS an acceptable level but watch out, it may be Dollars in & pesos out!! Normal rates for Dollars in AND out are around 7 or 8%. Commercial rates through "safe" finance houses are about 18% p.a. or 1.5% paid monthly. This 1.5% monthly interest may be left in to compound if you so desire.

Interest rates from the banks are going down now though, businesses in this country have been complaining bitterly that rates of borrowing are too high & the govrnment has bowed to this pressure (via the Central Bank) & is beginning to reduce the bank rates. What is 8% now, may be 6% in a couple of months. The finance houses will enter a contract for a 12 month 'fixed' rate if you want them to.

Get back to me on my e-mail address if you want more information. We ahve been investing with these commercial institutions for about 4 years & have had no problems with their integrity & service. Grahame ^_^

Can you provide me with names of some of the "finance houses"? Thanks

try the US bank with branck in Santo Domingo when i was there., there was a chaseManhatan I would not change my money without insurance..