Best DR Bank For Foreigners?

[investorman]

Hello,

I was recommended to have a look at DR banks by an associate after seeing that your banks are paying 8-9% interest on US dollar accounts... AMAZING! Here, we're getting paid peanuts on our savings.

What does everyone think of Banco Mercantil? I was told to contact them, as they were able to work with English-speaking foreigners. Are there any other banks that I should be contacting? What is your personal recommendation?

Thanks,

Investorman

 

[crambi]

I have no much experience in investing money in the DR.
I 've just opened an account where I get almost the double you get, in a banc in Puerto Plata they give between 14% and 20% interest.

 

[hansbert]

But these interest rates are on deposits in local currency !

If you want to convert into DR Pesos your USD you will get these high interest rates. But what will happen if you want to change them back into USD ? Quite risky in these times of devaluation of the local currency and who knows hoew long this will go on ! You will probably lose part of your investment capital.

 

[Criss Colon]

A Fool and his money are soon parted!

What good is an interest rate of 20% when the inflation rate is 30%?You will not make money by putting money in the bank in the DR! Just ask the people with CDs in Baninter.They can't even get their priciple back! Cris colon:bandit:

 

[Keith R]

I have no much experience in investing money in the DR.
I 've just opened an account where I get almost the double you get, in a banc in Puerto Plata they give between 14% and 20% interest.

Crambi,
I don't know what kind of account you invested in, but it doesn't sound like a bank if it gives those rates in dollars or Euros. And as Criss says, with the peso in free fall, a peso-denominated account is a loosing proposition.
Regards,
Keith

 

[investorman]

It is not impossible

Have a look at this page from Banco Mercantil regarding the CD Rates. They are 8% or higher for even larger deposits. Not bad, in my view. And I'm talking US dollar rates, not peso rates. I wouldn't convert my dollars to pesos -- forget it. But I think that (at least from an interest rate perspective) the DR offers a good option for those of us who want to park our cash somewhere.

But... obviously if the bank turns into another Baninter, you're out of luck. So, I don't know what to say about that. I suppose you can only assume the government will step in and prevent bank failures, like in the US.

 

[Keith R]

Re: It is not impossible

Have a look at this page from Banco Mercantil regarding the CD Rates. They are 8% or higher for even larger deposits. Not bad, in my view. And I'm talking US dollar rates, not peso rates. I wouldn't convert my dollars to pesos -- forget it. But I think that (at least from an interest rate perspective) the DR offers a good option for those of us who want to park our cash somewhere.

But... obviously if the bank turns into another Baninter, you're out of luck. So, I don't know what to say about that. I suppose you can only assume the government will step in and prevent bank failures, like in the US.

IM,
I was responding to Crambi's remark about rates twice the ones you mentioned -- there's no way that the place he invested can be offering that much on US$ denominated notes from a bank chartered under the Monetary Law -- unless they're another Baninter waiting to happen. More likely it's a financiera, which is another animal and one not likely to saved by the Central Bank if things go sour.

As for bank failures, if the Central Bank is having to go to the IMF because they cannot deal with the Baninter save on their own (as the government claims as the rationale for going to the IMF), do you really think that they will have the resources to save yet another bank anytime in the near future? I have serious doubts about that....

Regards,
Keith

 

[investorman]

Re: Re: It is not impossible

As for bank failures, if the Central Bank is having to go to the IMF because they cannot deal with the Baninter save on their own (as the government claims as the rationale for going to the IMF), do you really think that they will have the resources to save yet another bank anytime in the near future? I have serious doubts about that....

Regards,
Keith

I understand what you're saying here. It's not good to keep all your eggs in one basket. But I don't see the harm in keeping some eggs in the basket, even if it is a bit more risky. If I wanted to be 100% safe, I'd keep all the money in developed countries and buy only guaranteed FDIC bank CDs.

On a side note... does anyone have experience with any of these DR investment companies such as ANOECA or The Guardian Group? Each run some kind of fund, although the Guardian Group says the mostly invest in jumbo bank CDs.

If you've had any experience with any of these companies, let me know.

Thanks,

Investorman

 

[Keith R]

Guardian Investment Group is linked to Ascot Advisory Services
Check the archives for the latter (esp. 2000-2001) and you should find plenty of info & discussion.
Caveat emptor.

Regards,
Keith

 

[Chris]

Re: Re: Re: It is not impossible

On a side note... does anyone have experience with any of these DR investment companies such as ANOECA .....

I know Anoeca well. Top notch investment house with a very good track record and conservative investment strategies. They are not a bank.

 

[Robert]

I have no much experience in investing money in the DR.
I 've just opened an account where I get almost the double you get, in a banc in Puerto Plata they give between 14% and 20% interest.

Not on US dollars they don't!

http://www.dr1.com/directories/investment/anoeca.shtml

 

[dale7]

What is that name of the bank in POP?

I have done checking regardings US dollar accounts and nowhere did I get any quote close to 14%-20%. I will stick to more stable and legitimate banks/investment houses. I plan on either starting up an account in Anoeca this trip or next one, thanks Bushbaby for all your assistance, thought I should add that. Anoeca is stable and offers around 12-13% average on annum, depending on your amount invested. I can't believe the 20% interest, something smells fishy. I would be highly suspicious of taking your money and running with a situation like that. As posted previously, if something sounds too good to be true and out of the norm, it almost always is.
dale7(Howard)

 

[Escott]

First off. You are getting 20% on what, Pesos? If so you are losing your ass!

Anoeca, the man that runs it name is Alberto. I love Alberto. I have 100k+ US with him for 2+ years and am happy as a pig in shit!

The Dominican Banks scare the crap out of me and I have under 1k with them. My fear is if they can't buy their oil because of lack of Dollars they will take yours from the bank and give you pesos and then you can PUNT. You know ala Argentina and Ecuador before them.

Email me at Scott@dominicancondorental.com if you have any questions about Anoeca.

 

[Hillbilly]

I am going to answer your first question

Without a doubt the best bank is the one that is safest. That said there are two or perhaps three fine options.
1) Banco Popular. The biggest, oldest non-government bank.
2) Scotiabank. themost conservative bank in the DR and also perhaps the most solid. Oldest of the foreign banks now that Royal has gone.
3) Banco Profesional. Owned by probably the richest family in the DR. Started life as a Finance Agency and grew slowly into a good bank

If what you are looking for is a good return on your money, you should talk to each of these folks and see what they offer you.

It makes no sense to do it long distance. You have to get a feel for the institution.

Hb

 

[Linda Stapleton]

Find something you're happy with and stay with it!

When I first came to this country I had all my money with Anoeca and was very happy with the service and Alberto. I started to get twitchy partly because of bad things I'd heard about financiers in general, plus a small misunderstanding, nothing bad about Anoeca, so I transferred my money to Banco Progreso, which was also fine. I thought the banks would be more secure.

Then, I wanted to protect my daughter's interests should anything happen to me, and was advised that a will in this country doesn't necessarily offer a lot of protection, plus death duties are extremely high. I was told that BanInter would open a joint certificate even though my daughter wasn't able to apply personally at this time. I went ahead with this a week before the shit hit the fan. The rest is history. Boy do I wish I'd stayed with Anoeca, or Banco Progreso, come to that. My daughter has even less protection now than previously!

If and when I can access my money again I will be putting most of it back with Anoeca, but I agree it is probably best not to have all your eggs in one basket.

You need a strong nerve to invest in this country, but some options are certainly better, and more importantly safer, than others.......

Good Luck to all you other happy investors!!

Namaste.

 

[TiberiusMineola]

ANOECA I agree

I agree with Chris' opinions & judgment. I've dealt with Anoeca for 4 - 5 years. I've always had a positive relationship & acceptable results. Not a bank; & no insurance. I wouldn't invest 50% of my net worth with Anoeca; but they're honest, competent, & local. I can't say that @ too man Dominican businesses of any kind.

 

[TiberiusMineola]

ScotiaBank ? ? ?

I've heard some good things @ ScotiaBank, at least in Puerto Plata. The branch manager, Elis Perez, was educated in the USA & speaks perfect English. She's pleasant & seems extremely efficient, by local standards. I don't intend to damn her with faint priase. She's very easy for Americans & other English speaking people to deal with. This is a Canadian bank, with some kind of franchise agreement with the Dominican branches. I don't know any thing @ the legal interrelationships. SB is paying 1 1/2 % on US Dollars, & 17 % on pesos. One can open a dollar account, with pesos or dollars, until recently. Now: no dollars available! A national problem. I trust SB more than I would any of the Dominican banks. Just, once metaphysician's opinion!

 

[Escott]

Re: ANOECA I agree

I agree on Anoeca as well. I have more than a few bucks with them and have been happy for a couple of years. I also happen to really enjoy the company of Alberto and consider him a great asset as both a friend and as someone I learn from regarding business practices in the DR. I also consider him a great asset if there is anything I need and don't know where to go!

I spent Memorial Day Weekend with him in NYC.

I took him on the Subway to the Bronx Zoo after the Metropolitan Museum of Art and the Whitney. Who takes care of him? LOL

We even met some beautiful women in Manhattan. Ho boy...

 

[DCfred]

Many Banks are in trouble

read the latest bank ratings-- Do what rich Dominicans are doing: putting their money in Miami.

 

[Escott]

How can someone MAIL you if it isn't enabled?

Do you get the 27% in Pesos? If so you could have done 30% in a bank but who cares cause you are losing your shirt in that case anyway if you have been holding for 2 months.

Can you give specifics or are you just going to repeat the same stuff Karibik?