the central bank CD's

incredible

Member
Jul 9, 2006
106
0
16
I am sure many people rely on cds and different types of investments for living in the DR, so I have some questions for the experienced investor here.

1) How secure is a cd with the central bank?
2) What rates and terms are they currently paying?
3) What is the min and maximun amount you can invest in a cd and how many cds can you have?
4) Do you have to have Dominican residency to invest amd obtain a CD?
5) What is the best way to open up an account with the central bank?
6) If you know of any other good secure financial investments (with good returns) in the DR, please let me know?

I thank you for any help, in advance! :)
 

NotLurking

Bronze
Jul 21, 2003
2,447
1,235
113
Sto Dgo Este
1) How secure is a cd with the central bank?
It is as secure as anything in DR. That said, I believe the CDs from 'Banco Cental de la Republica Dominicana' (BCRD) are the most secure. Most of the commercial banks (Leon, Popular, Progresso and Asociaciones) you can buy CDs from usually buy CDs from Banco Central themselves with YOUR money. Obviously, they get paid a much higher interest rate than they pay out to you. Cut the middleman and get your CD from the source.

2) What rates and terms are they currently paying?
It depends on the type of CD and the length of time to maturity. BCRD had two types of CDs with maturity terms from 90 day to 30 month (2 1/2 years) but I don't think they are offering CDs with early cancellation at this time (you will have to check this, I'm not sure). The only CDs BCRD is offering (at the window - Ventanilla) is PLAZO FIJO. With PLAZO FIJO early cancellation is not possible. However, the CD is a negotiable financial instrument and can be transfer to another party at any time. (It can be sold or used for payment - if the debtor accepts it). The current rates are much better than commercial banks:

Certificados a Plazo Fijo

Plazos Tasas de Inter?s

180 d?as 9%
365 d?as 11%
18 meses 12%
24 meses 13%
30 meses 15%


3) What is the min and maximun amount you can invest in a cd and how many cds can you have?
The min amount for Plazo Fijo is RD$100,000 and the maximum is RD$20,000,000. Currently, there is no limit on the number of CDs you can have.

4) Do you have to have Dominican residency to invest amd obtain a CD?
You don't need to be a citizen or legal resident of DR to invest in BCRD CDs. All you need is a valid passport.

5) What is the best way to open up an account with the central bank?
I'm not sure I understand the question. I Don't think you can open any standard account (checking, Saving) at BCRD. However, you can invest in a financial instrument like CDs, Plazo Fijo (CD), Largo Plazo (also CDs), Cero Cupon (Auction CDs) ect.

This is what you need to get a CD Plazo Fijo:
Money in a Cashier's check (you may use cash up to RD$300,000)
passport
if it's a big amount of money you need documents for the money (proving where the money came from)
local Bank account to deposit your interest payments every month. (Popular, Leon, Progresso...)
CD Application form filled out correctly.

6) If you know of any other good secure financial investments (with good returns) in the DR, please let me know?

I wish I did! Some members of this board use a financial investment house like ANOECA but I have no first hand knowledge or experience with this here in DR. I just bring it to your attention.

As always be very careful with any investment decision; do you homework!

Good luck!

NotLurking
 
Last edited:

is mikehunt there

*** Sin Bin ***
Jan 18, 2007
117
2
18
great response


1) How secure is a cd with the central bank?
It is as secure as anything in DR. That said, I believe the CDs from 'Banco Cental de la Republica Dominicana' (BCRD) are the most secure. Most of the commercial banks (Leon, Popular, Progresso and Asociaciones) you can buy CDs from usually buy CDs from Banco Central themselves with YOUR money. Obviously, they get paid a much higher interest rate than they pay out to you. Cut the middleman and get your CD from the source.

2) What rates and terms are they currently paying?
It depends on the type of CD and the length of time to maturity. BCRD had two types of CDs with maturity terms from 90 day to 30 month (2 1/2 years) but I don't think they are offering CDs with early cancellation at this time (you will have to check this, I'm not sure). The only CDs BCRD is offering (at the window - Ventanilla) is PLAZO FIJO. With PLAZO FIJO early cancellation is not possible. However, the CD is a negotiable financial instrument and can be transfer to another party at any time. (It can be sold or used for payment - if the debtor accepts it). The current rates are much better than commercial banks:

Certificados a Plazo Fijo

Plazos Tasas de Inter?s

180 d?as 9%
365 d?as 11%
18 meses 12%
24 meses 13%
30 meses 15%


3) What is the min and maximun amount you can invest in a cd and how many cds can you have?
The min amount for Plazo Fijo is RD$100,000 and the maximum is RD$20,000,000. Currently, there is no limit on the number of CDs you can have.

4) Do you have to have Dominican residency to invest amd obtain a CD?
You don't need to be a citizen or legal resident of DR to invest in BCRD CDs. All you need is a valid passport.

5) What is the best way to open up an account with the central bank?
I'm not sure I understand the question. I Don't think you can open any standard account (checking, Saving) at BCRD. However, you can invest in a financial instrument like CDs, Plazo Fijo (CD), Largo Plazo (also CDs), Cero Cupon (Auction CDs) ect.

This is what you need to get a CD Plazo Fijo:
Money in a Cashier's check (you may use cash up to RD$300,000)
passport
if it's a big amount of money you need documents for the money (proving where the money came from)
local Bank account to deposit your interest payments every month. (Popular, Leon, Progresso...)
CD Application form filled out correctly.

6) If you know of any other good secure financial investments (with good returns) in the DR, please let me know?

I wish I did! Some members of this board use a financial investment house like ANOECA but I have no first hand knowledge or experience with this here in DR. I just bring it to your attention.

As always be very careful with any investment decision; do you homework!

Good luck!

NotLurking
 

is mikehunt there

*** Sin Bin ***
Jan 18, 2007
117
2
18
whats the central bank paying on us$investments??
thanks



1) How secure is a cd with the central bank?
It is as secure as anything in DR. That said, I believe the CDs from 'Banco Cental de la Republica Dominicana' (BCRD) are the most secure. Most of the commercial banks (Leon, Popular, Progresso and Asociaciones) you can buy CDs from usually buy CDs from Banco Central themselves with YOUR money. Obviously, they get paid a much higher interest rate than they pay out to you. Cut the middleman and get your CD from the source.

2) What rates and terms are they currently paying?
It depends on the type of CD and the length of time to maturity. BCRD had two types of CDs with maturity terms from 90 day to 30 month (2 1/2 years) but I don't think they are offering CDs with early cancellation at this time (you will have to check this, I'm not sure). The only CDs BCRD is offering (at the window - Ventanilla) is PLAZO FIJO. With PLAZO FIJO early cancellation is not possible. However, the CD is a negotiable financial instrument and can be transfer to another party at any time. (It can be sold or used for payment - if the debtor accepts it). The current rates are much better than commercial banks:

Certificados a Plazo Fijo

Plazos Tasas de Inter?s

180 d?as 9%
365 d?as 11%
18 meses 12%
24 meses 13%
30 meses 15%


3) What is the min and maximun amount you can invest in a cd and how many cds can you have?
The min amount for Plazo Fijo is RD$100,000 and the maximum is RD$20,000,000. Currently, there is no limit on the number of CDs you can have.

4) Do you have to have Dominican residency to invest amd obtain a CD?
You don't need to be a citizen or legal resident of DR to invest in BCRD CDs. All you need is a valid passport.

5) What is the best way to open up an account with the central bank?
I'm not sure I understand the question. I Don't think you can open any standard account (checking, Saving) at BCRD. However, you can invest in a financial instrument like CDs, Plazo Fijo (CD), Largo Plazo (also CDs), Cero Cupon (Auction CDs) ect.

This is what you need to get a CD Plazo Fijo:
Money in a Cashier's check (you may use cash up to RD$300,000)
passport
if it's a big amount of money you need documents for the money (proving where the money came from)
local Bank account to deposit your interest payments every month. (Popular, Leon, Progresso...)
CD Application form filled out correctly.

6) If you know of any other good secure financial investments (with good returns) in the DR, please let me know?

I wish I did! Some members of this board use a financial investment house like ANOECA but I have no first hand knowledge or experience with this here in DR. I just bring it to your attention.

As always be very careful with any investment decision; do you homework!

Good luck!

NotLurking
 

NotLurking

Bronze
Jul 21, 2003
2,447
1,235
113
Sto Dgo Este
whats the central bank paying on us$investments??
thanks

I don't think BCRD accepts investment in US$ or Euro. Dominican banks have US$ CDs but the interest rate are just slightly better than US banks. If you can deal with a little risk and get a good night sleep, your best bet to maximize your return on investment would be to use a financial house. Be advised, however, that the greater the interest paid, the higher risk your taking. Some investments houses are better than others, do your homework well. Never forget the common sense rule of investing in DR: Never invest what you can't afford to give away.


NotLurking
 
Sep 19, 2005
4,632
91
48
with that kind of return, the risk must be great..other wise the line out the door would be long. who would even invest in a buisness, if you had a secure 15% roi at the bank.....
on the other hand, how is it even remotely possible that people in the DR take out loans for things like cars and houses....the interest rates must be through the roof.

bob
 

planner

.............. ?
Sep 23, 2002
4,409
26
0
with that kind of return, the risk must be great..other wise the line out the door would be long. who would even invest in a buisness, if you had a secure 15% roi at the bank.....
on the other hand, how is it even remotely possible that people in the DR take out loans for things like cars and houses....the interest rates must be through the roof.

bob

But they do Bob! They have these fairs all the time for new cars, new houses etc and the bank is on hand to loan the money - they sell out! I don't know how they do it with the high interest rates on loans but they do.

As to why they invest in businesses with a secure ROI of 15% - they must think they will make more in their business over time.
 

Celt202

Gold
May 22, 2004
9,099
944
113
A portfolio manager I used to know advised "Never invest where it doesn't snow." ;)

Caveat emptor.
 

Steve Costa Azul

I love Rocky's Ribs!
Jul 15, 2006
405
0
36
15%

with that kind of return, the risk must be great..other wise the line out the door would be long. who would even invest in a buisness, if you had a secure 15% roi at the bank.....
on the other hand, how is it even remotely possible that people in the DR take out loans for things like cars and houses....the interest rates must be through the roof.

bob

The negative thing regarding getting 15% on your 30 month cd is the volitility of the peso. You might be getting 35 pesos per US $ now but if the peso is reevaluted to 27 at any time while your money is sitting for the 30 months, then you haven't done as well as you thought.
The bigger the %, the bigger the risk!
Steve
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
Steve:

You are correct about the potential for Currency Risk, however, if you bought RD Pesos @ 35/USD and the RD Peso/USD pair goes to 27/USD, you just MADE 22.8% on your trade!

You shorted the Dollar @ 35 and covered @ 27, this is good if you are LONG Pesos and BAD if if you are LONG Dollars!

regards,

tambo'
 

Steve Costa Azul

I love Rocky's Ribs!
Jul 15, 2006
405
0
36
Backwards

Tambo, did I do it backwards? Silly me, you know what I meant! I think I was too frazzled from looking at the Miss Dominican pics!!