Current Intrest Rates

Curt

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Jan 14, 2003
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Hey there everyone, just wondering what the current (investment) intrest rates at the banks are for U.S and Dominican Funds?
 

GringoCArlos

Retired Ussername
Jan 9, 2002
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Bank Rates

IN RD$: RD$100k for 90 days = 21% annual
RD$500k for 90 days = 23% annual

In US$: US$10k for 6 months = 5.25% annual

Bank tasa today: Buy US at 28.00, Sell at 31.00.
 

Curt

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Jan 14, 2003
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Inerest rates

1.) I thought that US Funds had a better rate of return. Or did
that just change in the last 4 months?

2.) Also, when you say 9 & 6 months are you implying that you have to lock them in for that long to get those rates?

3.)If so, what would the interest rate be on just a standard saving account? DOP & USD?

Thanx for any help you can give.
 

ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
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Re: Inerest rates

Curt said:
1.) I thought that US Funds had a better rate of return. Or did
that just change in the last 4 months?

2.) Also, when you say 9 & 6 months are you implying that you have to lock them in for that long to get those rates?

3.)If so, what would the interest rate be on just a standard saving account? DOP & USD?

Thanx for any help you can give.

1. Never
2. Yes

The Peso rates reflect its relative lack of value (and lack of demand for it) vs. the US$, so while the US$ rates are lower they are still better than in the US (due to demand for the US$ in the DR) and the peso has to offer higher rates still to compete, if you will. The central bank not long ago was offering 1 year CD's in pesos for 36% per annum. So these rates look miserly by comparison.
 

Curt

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Jan 14, 2003
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1.) So what exactly is a "smaller account"? 5k, 10k, 20k, USD?

2.) Do you have to lock in for lenghty terms to get a good rate of return?

3.) Lets say a guy had a $25,000.00 USD, wanted to invest it in a fairly good rate of return, as anyone would, but wants to be able to withdraw a portion of the occured intrest (monthly) while leaving the intial amount invested. Is there a bank or finance house that does something of this nature?

4.) If not, what is the standard rate of intrest on just a basic savings account?
 

Escott

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Jan 14, 2002
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Curt said:
1.) So what exactly is a "smaller account"? 5k, 10k, 20k, USD?

2.) Do you have to lock in for lenghty terms to get a good rate of return?

3.) Lets say a guy had a $25,000.00 USD, wanted to invest it in a fairly good rate of return, as anyone would, but wants to be able to withdraw a portion of the occured intrest (monthly) while leaving the intial amount invested. Is there a bank or finance house that does something of this nature?

4.) If not, what is the standard rate of intrest on just a basic savings account?
With the Finance house it is a one year Certificate with a 30 day notice call on your part not theirs except for accrued interest which has no notice and that just depends. I needed a few thousand on a Friday and had to wait till Monday. Bad timing on my part. I could have received Pesos but wanted dollars because I get a better rate of exchange.

You would get 12-14% on 25k I think although I haven't checked in a month and things do change.

10k is small. 100k is large relatively speaking. US dollars of course.
 
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Curt

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Jan 14, 2003
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Fiance Houses

So you "lock" it in for one year, but at anytime you can pull your money out with only a 30 day wait period, and you can tap into your accured intrest at anytime (penalty free). Only downfall is, you may have a few days wait for processing.

??? Did I understand you correctly ???
 

Curt

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Jan 14, 2003
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As long as the Finance Houses don't start deciding to convert USD into DOP. ... .. No Finance House has tryed pulling that off yet have they?
 

Paul Thate

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Jan 11, 2002
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finance house less secure

when Baninter closed because of fraud.
Banco Central stood behind it and bailed the investors out.
More so then they needed to.
Nobody will bail out a finance house, when it closes because of fraud or mismanagement.
It hapened to a bank here why not to a finance house.
Thousands of Americans and Canadians lost all their savings
when a finance house in Costa Rica closed about half a year ago.
They are not controled here.
 

Escott

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Jan 14, 2002
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Yes Paul, you are talking about Brothers in Costa Rica. The government put them out of business in case you don't know.

I have had a mortgage in my name for a property that was/is/maybestill is worth 200k when I went over 100k. I don't want the property but it sure beats a sharp stick in the EYE like you could have gotten before the TAXPAYERS bailed you out of Baniter:)

Just because the DR bailed out one Bank doesn't mean they will bail out the next bank and I certainly don't believe that they even can bail themselves out of the debt that they are in.

Everyone goes in the direction that suits them. I am more suited to be in Dollars than Pesos. On the world market basket I am in WAY BETTER shape than taking the hit others took in Peso devaluation. Try getting 10 percent in a DR bank for US DOllars that is going to stay solvent!
 

mondongo

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Jan 1, 2002
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So you wanna put your money in Some Nice Guy's promise to pay you back?...i got some landfill near Santo Domingo i wanna sell....and what is your recourse if this fine man decides that he doesn't want to pay you back?...ever wander why they pay so much more than normal interest rates?....is ti because they think you are handsome? .....does their altruism allow them to take money out of their pocket and give it to you?....so you think you have finally found the elusive free lunch?.....

buyer beware
 

Curt

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Jan 14, 2003
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Pick A Hand *L*

For me, either way I have to convert money. Weither it be USD or DOP. Being a Canadian Gringo and all, & I emphisize "Gringo."
I step off that plane, the flight attendant might as well stamp my forehead with it.

Now really, for a guy like me, what would be the better of the two institutions?

I could invest in the much less stable, but not getting converted on the banks terms, peso that collects great intrest rates.

or

I could invest in the much more stable American Dollar in a Finance House and take the chance that someone walks away with my money.
 

Escott

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mondongo said:
So you wanna put your money in Some Nice Guy's promise to pay you back?...i got some landfill near Santo Domingo i wanna sell....and what is your recourse if this fine man decides that he doesn't want to pay you back?...ever wander why they pay so much more than normal interest rates?....is ti because they think you are handsome? .....does their altruism allow them to take money out of their pocket and give it to you?....so you think you have finally found the elusive free lunch?.....

buyer beware
Hahaha, free lunch? Did you know that the interest rate they collect is 3-6% a month? Yessir that is 36-60% a year on the money they pay you 12%-14% on. So lets do the math here. They make anywhere from 60% down to 22% on your money that you are getting a free ride on. Do you think that they want you to invest because of your looks? You make no sense whatsoever but I guess you don't need to in order to give your thoughts.

Did you ever wonder why the banks don't pay a much more normal interest rate? I wonder who is eating YOUR elusive free lunch?

I don't have to defend someone else's business because I really don't give a crap but when I see some of these responses I really have to laugh.
 

Paul Thate

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Jan 11, 2002
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Banks versus finance houses.

thats exactly my point
people that need to pay such high interest rate on loans
are a bad risk.
So we can surmise that his loan portofolio is of extreme poor
quality.
Big banks have their loan risk spread out over several
economic and geographical areas.
they are making reserves against bad loans etc.
finance houses have no such rules so generaly
speaking apart of the outright fraud that can happen in both institutions , Banks are a much better risk.
 

Escott

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Jan 14, 2002
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Oh I see, so you get 36% interest from the Bank Certs you have and they earn that money how? Buy lending your money out at LESS than 3% a month? Maybe your Bank will go out of business and NOT pay you?? Oh right, you have NO trouble with the banks in the DR although the one you used for a long time went out of business because of FRAUD. Oh yeah, they had a lot of reserves before the Tax payers bailed their depositors asses out!

Come on Paul, this is the DR which is bare CIVILIZED and not a first world country we are talking about. If what you said was true we wouldnt have had the Baninter fiasco and the trouble with Banco Mercantile.

I would be more worried about having my money in a bank like you do than the deal I have with the Finance House.

Yes, lets call them poor risks but lets also call them poor risks with Real estate as collateral.

I asked him about how much he takes back from bad debt because I thought it would be pretty high and since he only goes 30% loan to value I though I could offer him a quick 50% loan to value, get a great deal for myself, give him a 40% quick profit etc. etc..

He hardly ever doesn't get paid and very rarely takes back property. I have let him know I was interested but he hasn't offered a thing to me. I also met a fellow that has a pawn shop in Charimicos. Same deal I offered him since he takes Real Estate as collateral but he hasn't sent me an offer either. Wonder why? I bet it would have something to do with the 30% Loan to Value of the Real Estate they put up as collateral. They just don't want to lose it.

You ought to chat with him instead of just pulling the rabbit out of the hat with some of the things you say. I brought him to Camdom Toms Party so you could have chatted him there. The deal you have from the Central Bank with 36% interest is better than Alberto will give on Pesos. Guess their loan profolio is poor quality with a big risk to you and Alberto's is good quality by your argument.

I like my money in US dollars so I don't have to take the loss of peso devaluation and that is a big reason we think different and do different things. One thing you can be sure of is that I have researched and have done due dilligence on any investment I put 150k US in despite what you think. I wish you the best with your investment Paul.
 
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Curt

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Jan 14, 2003
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Whoa! *L*

It's a good thing were not all in the same room. I could cut the tension in this thread with a knife.

But it is nice to see to sides of the story. (Of course just personal opinions,) but opinions non the less.

From what I've heard your taking a chance with either institute, but your best bet would most likely be in the Finance House.

If your going to lose you might as well collect as much as you can on your investment before you get ripped off. *LOL*

It's all a game of chance.
 

Chris

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Oct 21, 2002
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Re: Banks versus finance houses.

Paul Thate said:
So we can surmise that his loan portofolio is of extreme poor
quality...

We may just have found the one good viable house in amongst many many bad ones.

I know the loan portfolio that Escott talks about - Well, I know it quite in detail and I know the financials of the house to the penny. This perhaps is a higher risk investment because of the nature of the beast, but the way this house is administered, is excellent. In fact, most of the tools that larger banks use to calculate risk, is in place and in order in this house. Loans are given only with excellent security, good reference checking and the rate of default is almost non-existent.

I also know the growth path for the house, as I helped design it from a systems and business perspective. We're dealing with a very reliable and viable investment business here. Of course there is risk. The finance house / bank risk in comparison for me, is in the reliability of the people that I deal with. Not in the institution. I remember my Dad telling me many years ago - I think I was still in school - One does not build up goodwill with a bank, you build up goodwill with a bank manager. Know the people, and deal with the people!

If you have funds earmarked for investment, you ought to perhaps just talk to the folks.