certificate of deposit 10% returns!

adamk1

Has anyone come across these. The best returns tend to be with growing countries such as Dominic Republic which offer dollar accounts. Most of this info seems to be available from websites or intermediaries promoting these services.

I'm well aware that there are many sharks out there, thats why I'd like to know if anyone else has actually done this and can vouch for these CDs.

Has anyone invested in CDs with foreign banks! and how have you found them.

Cheers,

deemy2004

The 10% won't be in US dollars. And the rate probably reflects a high inflation rate that results in a depreciation of the currency over time that will probably be > than the 10% interest earned on the CD.

cheerfulcat

Hi,

The money in CDs is only as secure as the issuing bank or company. CDs issued by US banks are insured and thus fairly safe; the average rate is 3.13%. The 9%-10% you are quoted for Dominican Republic based CDs is for commercial paper ( loans ) rather than for deposits. The return *is* for US dollars ( it's 20% for local currency investments ) so seems very attractive but then exotic foreign investments often do :-).

I would view these with extreme caution.

Cheerfulcat

adamk1

Thx Cheerfulcat,

I was pretty sure the returns were in US Dollars. I agree with your sentiments about being cautious and the risk is there, however, its a calculated risk.

This why I'm posting to find out if anyone else has tried and tested this and knows some genuine bank/broker details to find out more.
Also, as I'm looking into becoming non-domiciled, the returns will be tax free. (my father was born overseas and I have no plans my self to settle in the UK - I'm looking into which sun kissed beaches to settle in - Dubai tickles my fancy at the mo!)

deemy2004

That would be amazing 10% on US desposts !

yeh sounds great ! But the potential for fraud is high !

If something goes wrong ... are you really going to fly to the DR and chase it up with the locals ? Not exactly effecient police service.

Anyway maybe something to look into to risk 1-3% of a portfolio on.

Ive found the following link

http://www.ascotadvisory.com/News_Bulletin/9946.html