CD maturity coming

[pistitaWA]

Hello all- I have a CD that will mature in about a week at 3.45%. I thought I was disappointed with that rate as the previous one was at 5.30%. It looks like it is coming in a lot lower this time. I ran across the Capital Bank of Mexico which advertises CD rates for 12-14% interest. I heard they are not FDIC insured but no one has lost any money invested with them. Has anyone done business with them or heard of any reports as to their stability? Or does anyone know of a great CD rate out there? Thanks for the advice.

[grand_canyon]

I did a search on the Capital Bank of Mexico and very little came up. This would make me extremely nervous sending any money to them but the site was registered in 2007 and there hasn't been any complaints. Don't know if I'd risk it. There's a Mexican gov't banking regulation site but I don't know Spanish to search (I think cnbv.gob.mx)

I'm in the same boat as you as I'm having 5-6% CDs expiring and looking at the current rates hurts. I'm opening an account at Dollar Savings Direct at 3.4% and shifting the money there until rates recover. You can find long term CDs at 4% but I don't want to tie my cash up for four years figuring rates will go up in that time frame.

[kork13]

What maturity are you purchasing the CDs for? Based on the previous 5.3%, I'm guessing somewhere between 3-5 years?

The thing is that CD rates right now are all depressed. You're not going to get anything (reliable...) for a while--they won't rise again until the Fed lifts its rate back up, which could be for a while....

Look around for rates at around (or above) 3.5% to 4%. They're out there.... my primary bank, USAA, is listing 5 year CD's at 3.51%, 3yr at 3.10%. My second bank, Pentagon FCU, is giving them at 4.5% for 5yr, or 4.0% for 3yr.

Especially given the global turmoil (but also just because it's a Mexican bank, and uninsured by the FDIC), I wouldn't trust this "Capital Bank of Mexico".... Keep in mind that except in times of tremendous inflation (definitely NOT the current situation) a rate of 12-14% is generally an indication of either extremely poor management or desperation for liquid deposits, neither of which bode well for you, the uninsured depositor.

[Ima saver]

I have had two come due this past week also. I managed to get 4% for a 2 year and 3.75 for a one year. They are all local banks in my area. I would not send money to a Mexican bank either.

[Aleta]

I also would not send money to Mexico. They're having alot of problems right now. There was a news report on Fox news that was a military report. It said that Mexico and Pakistan at risk of rapid and sudden collapse. They were talking about security and threats. You can do a search on the topic and the
w will be listed for you to check out for yourself

s showww.foxnews.com/story/0,2933,479906,00.html - Cached

.

[Bernz]

I would investigate that Mexican Bank before doing anything with them. They may not be FDIC insured, but I am pretty sure they are insured by FDIC Mexican counterpart so your deposit should also be insured. That 12-14% rate is really very tempting. I've heard a lot of people are looking overseas nowadays for a better return on their money and I don't think there's anything wrong about that at all for as long as you do your due diligence.

[Russell]

I forget but isn't there a rule of thumb that buying I or EE bonds is what you should do when the interest rates are low, something about the fixed portion being low?

[Aleta]

I wanted to buy an EE bond for my granddayghter but it was so low that I didn't think it would pay anything. Would someone clarify what the poster just said.