Is it a good idea to deposit my money in a foreign bank that uses the U.S. dollar as?

its currency (e.g. Panama, Ecuador, etc)? My reasoning is that I wouldn’t be subjected to currency fluctuations that could erode my profits. Also, are their interest rates better than what is offered in the U.S.? Is this money safe? I have heard of safe, guaranteed bank rates of 7% or more in some of these countries. What do you think?

By | 2013-08-27T23:19:22+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|3 Comments

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  1. exactduke August 28, 2013 at 12:21 AM - Reply

    I think I would rather have my money in a FDIC guaranteed bank in the u.s. Ask those that invested with Alan Stanford in his Antigua bank @ 7/8 percent interest how safe their investments were.
    The return on your money, is never as important, as the return of your money.

  2. KC August 28, 2013 at 12:07 AM - Reply

    The US dollar is worth the same there as it would be any where else in the world. Also, there is no FDIC insurance in those countries. The reason for the 7% rate would be the risk factor. If the bank loses your money then, that’s all. You get a IOU and maybe in a few years they give you back the money and the interest.

  3. Ghost of Zeuz August 27, 2013 at 11:48 PM - Reply

    Good idea? Only if you have a legitimate reason to bank in those countries. (Trust me, you can’t open a bank account in a foreign country without a great deal of red tape.)

    Safe? There is no equivalent of “FDIC”. So, if the bank fails, you lose your money. Period.

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