Comments on: Earn 12% on a 90-day CD from Mexico?

By: Dave7007

Dave7007 — Fri, 01 Jan 2010 20:31:54 +0000

I can do better with stock,..without the risk, and I keep control of my prnicipal…

By: Dave7007

Dave7007 — Fri, 01 Jan 2010 20:29:25 +0000

Not enough return for the risk….lets say you could double your money or come close…than it might be worth the risk….there was some Eastern European banks paying very high interest on CDs also and a Brazilian ban…but cannot remember the names…..

By: garth "the finance swami"

garth "the finance swami" — Fri, 15 May 2009 19:53:31 +0000

Rent rate for this risk is waaay too low.

Your’re putting $5,000 at full risk to make an extra $600 bucks, not enough reward to risk return.

Better if you can afford full loss of $50,000 to make $6,000 now that makes more cents.

So smaller speculators should stay away from this one.

By: BloggingBanks.com

BloggingBanks.com — Sun, 26 Apr 2009 14:20:59 +0000

It is true that some international banks offer higher interest rates abroad on US dollar deposits.. But why offer double digit interest rates on deposits, when you could simply get FDIC insured and pay just 4% – 5% instead. It would be much cheaper for them to get money this way.. If you are a bank, would you like to pay the most or the least amount for deposits and still get away with it?

By: $$a$$y

$$a$$y — Wed, 22 Apr 2009 16:21:41 +0000

If you understood anything reagrding international banking, you’d know that this is not a pawn shop. Capital Bank is a well regarded and recognized bank.

By: Tru

Tru — Wed, 22 Apr 2009 09:02:50 +0000

OK, I’ll say it. It seems like a scam. People are being asked to send their money to a different country, on the account of a legitimate MX bank (Banorte) after which they’ll never see it again. However, if you think Tijuana pawn shops need millions of dollars of liquidity to operate, the lack of common sense will eventually cause you to lose your money anyway.

By: ricky

ricky — Tue, 21 Apr 2009 15:51:12 +0000

sapy2k- would you mind sharing the “well established” bank you’re using. Or any others you know of?

Thanks!

By: dan

dan — Tue, 21 Apr 2009 06:58:40 +0000

here’s another risk. MEXICO

By: Anonymous

Anonymous — Tue, 14 Apr 2009 17:47:25 +0000

What are the US tax consequences — will this be treated the same as if this was a US bank CD? What forms(if any) will neeed to be filled out? Does the amount invested matter? Thank you

By: sapy2k

sapy2k — Sat, 11 Apr 2009 22:38:23 +0000

Abroad you can get much better CD rates than in the US… that is –IF you have the stomach to digest the higher risks involved. Proof of it: for past 2 years i’ve been earning a constant 7.1% APR on 12-month CDs held in US Dollars at a well-established local bank in my home country in Central America –note I said from well-established bank and NOT a pawn-shop shady business like the Mexico bank mentioned in this article. Of course the local bank i use abroad is not FDIC insured or anything like that. So what are the Risks? well.. asides form non-FDIC insurance A quick overturn in local government (latin america is infamous for political/economic instability) and PoooF money gone!! Nevertheless I weighed the risks and only invested a 1/3rd of all my savings abroad.. the rest 66% of my savings is still safe here in US getting miserable 1-2% APR CD rates from Chase, Citi, and other behemoth giants getting rich off our hard-earned savings.

By: BloggingBanks

BloggingBanks — Sat, 11 Apr 2009 20:18:26 +0000

This definitely smells like a scam to me. Only a desperate individual would put $$ in a CD from this bank.

By: gortdb

gortdb — Sat, 11 Apr 2009 14:17:54 +0000

Is there any close equivalent in the US?

By: lee

lee — Fri, 10 Apr 2009 21:18:34 +0000

Man….. I sure wish they had such rates in U.S.