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