After reviewing foreign currencies to invest in, I did some digging into top bank CD rates in our hemisphere and found one bank in particular yielding an astonishing 12-19%!
However, before you get too excited about the offer you may want to conduct a tad due diligence on your own as they have a D rating along with several comments regarding being ripped-off.
Capital Bank, Mexico is a Mexican Savings and Loan Association regulated by the Mexican Federal Banking Commission. Unlike the US, the Mexican government does not offer bank insurance. However, according to Capital Bank, no depositor of a Mexican bank has ever lost any principal or interest in over 75 years (according to Capital Bank’s “Frequently Asked Questions” page). That being said – right now they are offering 9 month CD’s yielding 12 percent and 3 year CD’s offering 18 percent! They sweeten the pot by offering an additional 1% if you opt for the jumbo CD.
Here is a complete list of the CD rates offered by Capital Bank of Mexico:
90 day term – Certificate of Deposit
12% APR – interest payable monthly – $5,000 minimum deposit
One Year term – Certificate of Deposit
14% APR – interest payable monthly.- $20,000 minimum deposit
Two Year term – Certificate of Deposit
16% APR – interest payable monthly.- $20,000 minimum deposit
Three Year term – Certificate of Deposit
18% APR – interest payable monthly.- $20,000 minimum deposit
*Keep in mind they will add an additional 1 percent for any Jumbo CD investment.
Proceed with extremem caution. We understand the value that certificates of deposit have in the fact that they are virtually risk free, however, this likely can’t be said for this bank and their deposits. While they claim to have always returned their customers principal plus interest, there is simply no way of knowing whether or not this is actually the case. If you’re considering investing in foreign currency CDs, you may want to check out our review of EverBank’s money market account as they allow their customers to invest in a number of foreign currency deposits. Remember if a foreign currency rises or falls against the dollar while your money is tied up in the CD, this will have a direct impact on your earnings and could even eat away at the principal.
If anyone can enlighten us into the foreign banking/investment world please do so by leaving a comment.