Banco Central-GOOD NEWS FOR SAVERS

amparocorp

Bronze
Aug 11, 2002
900
86
0
be warned, if you are not here in person at the maturity date to act on this money, the bank is not going to roll it into another account and pay you big fat interest, no, no, it will pay a really stinky rate and with a fluctuating exchange rate for dollars/pesos you can lose money big time. plan on being here in 3, 6, 12 or whatever, it may be time to turn those pesos into dollars or buy another CD. this investment should be large enough that the interest justifies the plane tkt.

.
 

bryan1258

Bronze
Dec 24, 2007
547
60
0
be warned, if you are not here in person at the maturity date to act on this money, the bank is not going to roll it into another account and pay you big fat interest, no, no, it will pay a really stinky rate and with a fluctuating exchange rate for dollars/pesos you can lose money big time. plan on being here in 3, 6, 12 or whatever, it may be time to turn those pesos into dollars or buy another CD. this investment should be large enough that the interest justifies the plane tkt.

.
My thought is that only a small portion of your portfolio should be invested in Dominican cd's......max 10%
 

sweetdbt

Bronze
Sep 17, 2004
1,574
70
0
Does the principle need to be redeemed on the exact date of maturity, or is there a time frame? I would certainly hesitate to go this route living overseas if it is the exact date only. Stuff happens.
 

amparocorp

Bronze
Aug 11, 2002
900
86
0
you don't have to be here on the "exact date", but , you are not going to continue to receive 16%. i have watched the peso go from 12 to 55 and back to where it is today. some of those moves were big and happened overnight, some gradual. all i am saying is that at or around the maturity date a plan should be in place and you have to be here in person to act. your money will be "safe" if you don't act. the bank is not going to confiscate it. they will keep it in an account that is paying low low interest and if the peso moves from the current 34 to 37 you have just lost all of your 16% gain. if it goes any higher the 10k U.S. that you turned into pesos and banked is now really only 9k, even though you have 16% more pesos.the president just won another term in office so the next few months should be worth watching and waiting........
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
A Peso devaluation from 34 to 37 would still keep you in the green!
This only represents an 8.1% loss due to Fx fluctuation.
You have until 39.44 to start losing principle after 16% interest.
 

eztime

New member
Feb 11, 2007
63
2
0
hello to all I have not posted in quite a while...but had been reading this particular post on CDs and a 16% interest rate..what I most curious about is how safe is this money.is there some kind of guarantee like banks in the US.on deposits in the bank..I know that the central bank of the Dominican Republic has been in existence since 1947..but I was wondering is this money guarantee to be safe..I have read in the past where some banks have went under..anybody have any info regarding my question
 

The Virginian

Bronze
Mar 16, 2007
929
8
18
No guarantee, certainly no FDIC here. But I doubt the US/Canada and other country's would allow this country's banking structure to go under. But again, there are no guarantee's.
 

SantiagoDR

The "REAL" SantiagoDR
Jan 12, 2006
5,808
948
113
A Peso devaluation from 34 to 37 would still keep you in the green!
This only represents an 8.1% loss due to Fx fluctuation.
You have until 39.44 to start losing principle after 16% interest.

Quite curious on your calculation Tamborista.

$10,000 US at 34.2 = 342,000 pesos
3 years 16% Interest: 164,160
Total in 3 years: 506,160

$10,000 US at 50.616 = 506,160


To me, until the exchange rate reached 50.616 per US dollar, I'm ahead.

As long as the rate does not exceed that amount, I am at the least at a break-even point.

Even if the rate rises and stays at 45 per dollar, there is a 3 year gain of 16.42% of the principle amount.

If the rate drops back to 28.5, the 3 year gain is 64.67% of the principle amount.

Please correct me if I have made a mathematical error in these calculations.

(If your calculation of loss is based on exchanging at the higher rate, then, when is that peak? It could also go down. When do we draw the line in the sand?)

Don SantiagoDR
 
Last edited:

donquixote

New member
Aug 2, 2005
158
6
0
Has the interest rate gone up from the 16% at the national bank. the reason i ask is about 4 months ago when i was there and the national bank was 16% for 3 year term, the local bank was only 6.25% for a 90day note.
now recently the same bank gave me 13.% for a 90 day and 12.5 for 60 days, so i wondered if the national bank raised their interest?
 

DavidZ

Silver
Aug 29, 2005
3,512
238
63
www.vipcigartours.com
Has the interest rate gone up from the 16% at the national bank. the reason i ask is about 4 months ago when i was there and the national bank was 16% for 3 year term, the local bank was only 6.25% for a 90day note.
now recently the same bank gave me 13.% for a 90 day and 12.5 for 60 days, so i wondered if the national bank raised their interest?

Which bank is giving those rates on the short term cd's..those are great rates!
 

TheHun

New member
May 4, 2008
448
58
0
Wow! I'd like to know that info also.
I just opened a Banco Popular peso and US$ account, and they said the interest is only 0.4(!!!)% ?????
Well, the lady's english at the bank matched my spanish, so you can imagine the conversation.....
They did not give me a check card with a visa/mc logo, I guess I need a cedula for that...

TheHun
 

TheHun

New member
May 4, 2008
448
58
0
for those who cares..

Well, I went to pick up my checks today from the Banco Popular and asked them about their CD rates, and WOW!
for 90 days, with a minimum of RD$ 20000.00 their rate is 13.45% . The lady at the bank said that she can give me an extra 0.4% as a bonus (total of 13.85%) if I deposit more than RD$ 1 million.
I think that is pretty good rate on short term, don't you think??

BTW: over DR$ 20000.00 on 120 days, 13.95
180 days 14.10
360 days 14.55
540 days = 360 rates (so what's the point???)
On US $ :
USD 200.000 (yes, it is two hundred thousand) minimum deposit for 360 days the rate is only 0.7 % !!!!!!

Now I also wonder about the Central Bank rates...
Anyone has any other info on CB rates, perhaps other banks CD rates?

TheHun
 

donquixote

New member
Aug 2, 2005
158
6
0
interest rates

well looks like i got a few people now checking the cd rates. i think all banks like popular will be xlose\

but still if anyone can get the updated rates at the national bank for different terms, the info would be appreciated..last i had was a few months old at 16%
 

Ricardo900

Silver
Jul 12, 2004
3,269
37
48
Well, I went to pick up my checks today from the Banco Popular and asked them about their CD rates, and WOW!
for 90 days, with a minimum of RD$ 20000.00 their rate is 13.45% .

Now you are telling me that if i buy a 90-day CD for RD$20,000 at 13.45%, I will receive RD$22,690. And if i reinvest the RD$22,690 into another 90-day= RD$25,741, which continuous investing will give: Day 270=RD$29,204 & Day 360=RD$33,132, if I compound the interest.

Is my math correct?? 67% earned in one year on initial investment.

I can't see the punch line.
 

donquixote

New member
Aug 2, 2005
158
6
0
Now you are telling me that if i buy a 90-day CD for RD$20,000 at 13.45%, I will receive RD$22,690. And if i reinvest the RD$22,690 into another 90-day= RD$25,741, which continuous investing will give: Day 270=RD$29,204 & Day 360=RD$33,132, if I compound the interest.

Is my math correct?? 67% earned in one year on initial investment.

I can't see the punch line.

come on now: i think most people know that if a rate of 13.45% is given for a 90 day cd, it means the interest is the annual rate and the 90 days is the term, therefore you would get RD$20,000 x 13.45% divided by 4.
 

Ricardo900

Silver
Jul 12, 2004
3,269
37
48
come on now: i think most people know that if a rate of 13.45% is given for a 90 day cd, it means the interest is the annual rate and the 90 days is the term, therefore you would get RD$20,000 x 13.45% divided by 4.

Oooops, hehehe. Got a little carried away, I thought they were printing money back there.:surprised