Banca Santa Cruz. 14.8% interest, pesos

[joe]

OK I'll give you that windy. If now at this date he plans on getting more than 10.2% there's something wrong.
However there are a few of us that have actually made 20% in the past with government bond issues, not so now a days.
I've dealt with BANCO Santa Cruz for years with no problems. I also have Banco Santa Cruz CD' s and have had for years.

I hope that clears things up for you. Have a nice day.

 

[cbmitch9]

Buyer beware.

 

[windeguy]

OK I'll give you that windy. If now at this date he plans on getting more than 10.2% there's something wrong.
However there are a few of us that have actually made 20% in the past with government bond issues, not so now a days.
I've dealt with BANCO Santa Cruz for years with no problems. I also have Banco Santa Cruz CD' s and have had for years.

I hope that clears things up for you. Have a nice day.

There was nothing to clear up for me or the others who are skeptical on this thread. The days of that level of interest of way over 10% annually at a normal bank or Banco Central are gone and may not return. I agree with you that there is no way someone today is going to get 14.8% annual interest in pesos in a new investment (unless it is a Ponzi scheme).

 

[JD Jones]

OK I'll give you that windy. If now at this date he plans on getting more than 10.2% there's something wrong.
However there are a few of us that have actually made 20% in the past with government bond issues, not so now a days.
I've dealt with BANCO Santa Cruz for years with no problems. I also have Banco Santa Cruz CD' s and have had for years.

I hope that clears things up for you. Have a nice day.

I've seen as high as 52%, but those days are long gone.

 

[joe]

I've seen as high as 52%, but those days are long gone.

I was around then. I changed money when it was 53 to 1. I got 35% at the Banco Central.

 

[JD Jones]

I was around then. I changed money when it was 53 to 1. I got 35% at the Banco Central.

The best part about it was when Lionel was elected and the peso dropped to 33. That almost doubled my money in the space of a couple of days.

 

[SKY]

When a bank advertises the rate of a CD at 7% for a six month or any amount of time it is a rate figured on a yearly basis.

 

[affald]

When a bank advertises the rate of a CD at 7% for a six month or any amount of time it is a rate figured on a yearly basis.

That's exactly what I told him. He say the banker at the BANCO actually wrote on a piece of paper 1.23% a month. I said , "Did she give you that paper?"

Answer, no

Could they be so devious to get his small 250,000 deposit?

 

[joe]

Good luck to him. Was this in Santiago?

 

[affald]

Good luck to him. Was this in Santiago?

Santiago, near Plaza Llama (spelling)

 

[joe]

The best part about it was when Lionel was elected and the peso dropped to 33. That almost doubled my money in the space of a couple of days.

The rate actually dropped to 28 to 1. I also doubled my money. HA..HA, that'll never happen again.

 

[joe]

Santiago, near Plaza Llama (spelling)

You'll have to give an update when he gets payed.

 

[SKY]

That's exactly what I told him. He say the banker at the BANCO actually wrote on a piece of paper 1.23% a month. I said , "Did she give you that paper?"

Answer, no

Could they be so devious to get his small 250,000 deposit?

Either devious or one of many morons you encounter here.

 

[windeguy]

That's exactly what I told him. He say the banker at the BANCO actually wrote on a piece of paper 1.23% a month. I said , "Did she give you that paper?"

Answer, no

Could they be so devious to get his small 250,000 deposit?

Yes. What does the contract say?

 

[affald]

Yes. What does the contract say?

Have not seen it, he says 7.4, he thinks for 6 months, I say annual. Trying to lay eyes on it.

 

[SKY]

There is absolutely NO chance that this is for 6 months. NONE...............................

 

[franco1111]

Why do dollar accounts get so little interest, and peso accounts much more? (At the risk of getting "don't expect anything here to make sense" answer. Jjj.

 

[cavok]

Why do dollar accounts get so little interest, and peso accounts much more? (At the risk of getting "don't expect anything here to make sense" answer. Jjj.

They have to pay more on peso bonds because of risk of devaluation. Currently you're losing about 3.5% of that peso yield to devaluation, but there is nothing to say that the devaluation rate couldn't increase. It has in the past - some years substantially.

 

[Expat13]

I've been investing since 2005 from 20% to now 10.2%. I've never had a problem and have been living here well since 2008 off of my interest. Never needed to take money from my foreign accts. Cross fingers. Considering that if you live here, you are making pesos and spending pesos, no need to lose sleep over the peso devaluing against the buck.

Many on this forum who live here may not necessarily work here. I would also guess many here pay rent and that rent is probably based in USD $$$$ so the owner can hedge against the devaluation of the peso.

 

[Expat13]

They have to pay more on peso bonds because of risk of devaluation. Currently you're losing about 3.5% of that peso yield to devaluation, but there is nothing to say that the devaluation rate couldn't increase. It has in the past - some years substantially.

But over 10 years it gas gone from 32dop=1usd to 47.4dop=1usd