deposit interest

Phanata

New member
Dec 24, 2008
28
4
0
Hello,

Please advise what deposit rates are there in DR now and if I can draw interest on montly basis.

First time after arriving plan to invest my savings to banks and live on interest + rent from appartment left in my country.
 

AK74

On Vacation!
Jun 18, 2007
842
36
0
I would not count on any Dominican deposit for income. More like a casino gambling. Chances to win are about the same.

This year you may gain 3%-4% (after correction on devaluation), next year you may easy lose 50% of your investment without much recourse.

For a newby to this island I wouldn`t think of any risky projects, being in your shoes.

Monthly basis on CD account? - No.
 

terrierist

New member
Mar 20, 2009
24
4
0
I would not count on any Dominican deposit for income. More like a casino gambling. Chances to win are about the same.

This year you may gain 3%-4% (after correction on devaluation), next year you may easy lose 50% of your investment without much recourse.

For a newby to this island I wouldn`t think of any risky projects, being in your shoes.

Monthly basis on CD account? - No.

I, too, am looking at retiring to the D.R. in the next few months and am looking for a stable local income.
So where would you suggest investing in order to create a monthly D.R. Peso income?
 

bachata

Silver
Aug 18, 2007
4,240
321
83
US $ 25,000. x 35.00= RD $ 875,000. 875,000 x 18% anual interest. How much is the monthly earning?
 

JAMIE

New member
Jun 10, 2002
47
2
0
In DR., you have to consider few more factors before you make your final decisions of the deposit in the bank:
1. the currency exchange rate: say, if you get 14% interest rate from bank., and you lose 15% of the exchange rate on the foreign currency after one year., end up you lose your money at the face value of the foreign currency. YES, you do make some interests, but in case if you want to change the moeny back to your own country's currency, you will get back far less.

2. The inflation rate: DR is the country that you have no way to know the inflation rate rocketing high at when it will happen? How much it will go?

3. Interest is unearned income in the US., you also need to think about how the Government change the policies, if any..., such as withholding, personal income taxes...etc.

4. accessibility: I used to deposit US$ check in the bank, it took me 45 days to get cleared., and I want to withdrawl my US$, I have to preadvise the bank, takes 2-3 days to get MY OWN money. (You can double check with banks on this issue, they may change now)

So., do not just calculate what you could make on the interest monthly., also take into consideration other factors......, then make your final decision.
 

terrierist

New member
Mar 20, 2009
24
4
0
Thanks, everyone, for your help. What is the mechanism to purchase Central Bank CDs? Do I send a bank draft? In Pesos? U.S. Dollars? Is there a contact there? What identification might I need?

Are there other investment channels that are interesting? I would like to diversify ny D.R. investments considerably.
 

JAMIE

New member
Jun 10, 2002
47
2
0
1. Diversification: that is one of the important things that you also need to do in DR besides the interest that you are considering.
2. Investment channels: I personal prefer is "CASH" business in DR., if you are talking about credits to people, or other business., then "YOU HAVE TO PRAY THAT THEY WILL PAY YOU ON TIME."
3. Type of the business: it's all up to your judgement and preference., but "LEGAL" .
4. CD: Yes., you can try CD as well., you can deposit in US Dollars in CD or Peso in CD., if you deposit US dollar in CD., I think the annual interest rate is 1-2%.., If you deposit peso in CD, the interest rate is 10-14% depending on the maturity date.., or, you can exchange your dollars into peso and then deposit into peso's account.
5. Identification: passport will serve the purpose enough.
 

SantiagoDR

"46"
Jan 12, 2006
5,412
565
113
Thanks, everyone, for your help. What is the mechanism to purchase Central Bank CDs? Do I send a bank draft? In Pesos? U.S. Dollars? Is there a contact there? What identification might I need?

Are there other investment channels that are interesting? I would like to diversify ny D.R. investments considerably.

Looking to lose your money?

Go to Central Bank and do it in person.
I don't really know if you can do it remotely anyway.


Don SantiagoDR