Bank CD Rates

2022 update.

We hereby revive this 12-year-old thread

with new information.

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Typically Expats needed to go to a cooperativa

to obtain annual interest in the 8 to 9 percent

range on a CD or certificate of deposit

guaranteed by COSEDE, Ecuador's FDIC.

I went to Banco Guayaquil in Quito today to

see if I could find out why a transfer of funds

I had arranged last month from my Banco

account to my new account at Cooperativa

Policía Nacional had not been processed.

The delay was preventing me from opening

a CD at Policía at a favorable rate.

The Banco rep told me I could open a CD

instead at her bank, where I have been

a longtime customer, with an interest rate

of 6.90 percent (based on 365-minimum

holding of my planned 32K investment),

which she said is one point below what

the co-op is offering.

I told her I wanted that one percent, meaning

at least 8 percent interest.  She agreed to 8%,

pending final bank approval by November 2.

I will be getting monthly interest deposited

to my original savings account at Banco.

So I plan to invest with Banco, because

(1) they have treated me well enough

during my nine years as a depositor

(2) transferring money from my USA bank

to Banco and into the CPN cooperative

has been a long and unsuccessful slog, so

I'd just as soon complete the CD investmen

process on November 2, rather than

drag things out any longer.

cccmedia in Quito

@cccmedia … I’ve had better luck making international wire transfers through Banco Pichincha (they have US branches) and Banco del Austro as the US intermediaries on the route to both my JEP and CPN accounts; No delays and clear communication in tracking of funds (nonetheless as I silently wring my hands in desperate anxiety that my lifes savings will magically disappear into the void between the northern hemispheres SWIFT financial system and the affiliate network everywhere else)…

If you’re wiring money to a private account holder (say to purchase their property that will be home for you for 10 years until your Ecuadorean Bank interest investment increases enough to buy the house you really want!), and they give a personal street name / address that exists only in the minds of the people who live within three blocks, and does not exist on any official Ecuadorean map or even Google, your money may indeed be perpetually held up as having “incorrect addressing information” for the recipient of your hard earned money. (sigh)

Good for you negotiating a comparable rate though! Is it a set rate or a ‘limited time offer’? Check the fine print!

The CD rate is good for the 365 days .. and if Banco

then reduces the interest rate, I would likely

effort a transfer to the Policía co-op or another co-op.

I would prefer not to move the CD from Banco

next year ..  as it will roll over to keep earning interest

after 365 days if I take no action to close it out.

I confirmed this with the Banco rep who offered me

8 percent.

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Expats should stay diversified in order to avoid

the wringing of hands and desperate anxiety

that RKG described.  Hopefully, he was

exaggerating about fears that his life savings

might be at risk.

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The fact that Banco Guayaquil is offering

an annual 8 percent return on my CD investment

means that I can put future, different funds into a

Policía Co-op CD, and -- because COSEDE categorizes

banks and co-ops differently -- theoretically I would

have both the bank CD and a co-op CD fully

insured up to 32K each by COSEDE.  I will not

be making such an additional investment this year.

I expect to make an investment in a USA Treasury

I-Bill next year.  As I understand it, this type

of investment up to 15K can be initiated

electronically .. and has been offering

returns similar to the more favorable

Ecuador-CD rates.

cccmedia in Quito

CPN plastic benefit.

Although I am not planning to invest in a

CD with Cooperativa Policía Nacional (CPN)

anytime soon, I am glad I opened an account

with CPN this year.

The CPN account gives me a new debit card

to replace a USA-based debit card whose use

I lost recently when Wells Fargo Bank closed a

longtime account of mine.  The reason

for the closure was the fact that I do not

have a USA mailing address.

I like to maintain as active three debit cards ..

and my cards with Banco, CPN and my

remaining USA-based bank (not Wells Fargo)

keeps my card total right there at three.

cccmedia in Quito

CD investment has been initiated.

I have secured a CD at the COSEDE maximum-insured

limit, with Banco Guayaquil.

I was glad to accept the term of two years, after which

the CD will 'roll over' and continue to earn interest

unless I decide to move or withdraw the CD funds

from Banco.

The interest rate is 8 percent per annum.

cccmedia

@cccmedia …well done! Yes, diversify! I’m “banking on” my CD’s to give me enough from my investment for the house, garden, and hammock of my dreams, in a few years. Dishwasher?! Well… don’t want to dream TOO big.

I’m invested with CPN for my 2 year (21 month) Investors visa, and JEP for a 3 year term investment, both at 8%. Still waiting to cut the cord on my ‘credit rating rebuilding’ Capital One credit card… but I understand I should consider getting a credit card from an Ecuadorian bank / Co-op BEFORE I turn 65, they won’t allow it after that.

Apparently Ecuador banking rules and policies are the opposite of North America;  They presume that the older you are the less money, assets you (may) have, and are at a higher risk of nonpayment… I suppose because pensions and retirement plans are not a thing here… Also the reason that the interest rates are extremely high, although they’re probably comparable to my capital one ‘you’ve been very bad’ predatory rates.  Anyone have recommendations for low(er) rates, low risk credit cards?

The family attorney talked me off of credit cards

after I abused credit through 2006.

It's my understanding that Ecuador banks,

co-ops and Rappi issue debit cards.

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I stopped using my dishwasher in Quito

five years ago.  I bought it for $700 US,

would sell for $200. It still runs, with

2.4 hours running time on standard cycle.

cccmedia

It's my understanding that Ecuador banks, co-ops and Rappi issue debit cards.

Pichincha is always sending me emails wanting me to apply for a credit card. I don't apply, because I know I wouldn't qualify.

My dream is to have Rappi debit or credit card, but only in Colombia, since they only offer an app here in Ecuador.

Mr. 2nd Passport had a video a few months back. about how to get an Ecuadorian credit report. While my U.S. score is quite fine, I am sure my Ecuadorian score is in the toilet.

Apparently Ecuador banking rules and policies are the opposite of North America;  They presume that the older you are the less money, assets you (may) have.

Triggers a memory of sitting in the Pichincha branch in Cotacachi years back waiting on a client service rep to finish up with an older Ecuador gentleman who was quite befuddled by what the rep was telling him. The gist of what she said was that there were family members in his house who were using his debit card without him knowing it. I thought that was a very perspicacious

observation by her, albeit a guess.

Incoming, from Taiwan.

New member Schlee may be moving to Ecuador

in early 2023 and posted about possibly seeking

eight percent APY income in Ecuador.

Yes, such a return is possible.  Last month I

opened a two-year CD at Banco Guayaquil, where

I have been a depositor for many years.  The

income is eight percent per year, with CD's

of up to 32,000 USD per depositor

guaranteed by Ecuador's FDIC-type agency,

COSEDE.

Cooperativas such as JEP and CPN offer slightly

higher yields.  I belong to the latter co-op and

was attempting to invest in a CD there, but ran

into delays getting money transferred into my

CPN account, so I went with Banco Guayaquil

instead.

CPN stands for Cooperativa Policia Nacional and

was originally a credit union of sorts for Ecuador's

national police force.

Like banks, co-ops have CD deposits insured for

up to 32,000 USD per depositor by COSEDE.  According

to my research, I can potentially invest in a second

insured CD, with CPN, provided I can transfer

future funds from my USA-based bank account

into CPN, probably with some middle-man banks

along the way.

cccmedia in Quito