Offshore CD at higher rates?

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rockthisworld
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Joined: Wed Oct 17, 2018 9:37 am

Offshore CD at higher rates?

Post by rockthisworld »

https://www.panama-offshore-services.co ... posits.htm

Hello bogleheads, is this a real way to shelter savings because the cd rates are higher? Or is there a catch? I’m trying to look for ways to beef up my savings and put it into a 12 month cd. If I look at Ally Bank they are offering 1.25% for both 12 month cd and their online savings acct rate. Is it worth it? Or is the downward pressure on interest rates destroying yield to the point where it’s not worth it?
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midareff
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Re: Offshore CD at higher rates?

Post by midareff »

IMHO even 1.25% has a place as an Emergency Fund or other highly liquid cash reserve. With a 12 month rolling CPI-U at 1.83% and tax due on the income of the 1.25% it's not a place for more than you need for an emergency.
Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: Offshore CD at higher rates?

Post by Silk McCue »

Seriously? Offshore banks for a CD, or for anything? What could possibly go wrong?

Cheers
alex_686
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Re: Offshore CD at higher rates?

Post by alex_686 »

I suspect that these are not FDIC insured. As such, what risks are you taking on for this higher return?
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
Topic Author
rockthisworld
Posts: 301
Joined: Wed Oct 17, 2018 9:37 am

Re: Offshore CD at higher rates?

Post by rockthisworld »

Yeah I see why I shouldn’t risk that now lol.
AlohaJoe
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Re: Offshore CD at higher rates?

Post by AlohaJoe »

alex_686 wrote: Thu Jun 04, 2020 7:29 am I suspect that these are not FDIC insured. As such, what risks are you taking on for this higher return?
It says exactly that on the page that the OP linked but didn't read :twisted:
02nz
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Re: Offshore CD at higher rates?

Post by 02nz »

Panama. Offshore. These words didn’t send you running? I know this investment guru, Bernie something ... :P
BJJ_GUY
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Joined: Wed Mar 13, 2019 7:45 am

Re: Offshore CD at higher rates?

Post by BJJ_GUY »

rockthisworld wrote: Thu Jun 04, 2020 7:14 am https://www.panama-offshore-services.co ... posits.htm

Hello bogleheads, is this a real way to shelter savings because the cd rates are higher? Or is there a catch? I’m trying to look for ways to beef up my savings and put it into a 12 month cd. If I look at Ally Bank they are offering 1.25% for both 12 month cd and their online savings acct rate. Is it worth it? Or is the downward pressure on interest rates destroying yield to the point where it’s not worth it?
Not FDIC insured... also, this is an (extreme) example of offshore CDs offerings going poorly.

In early 2009, Stanford became the subject of several fraud investigations, and on February 17, 2009, was charged by the U.S. Securities and Exchange Commission (SEC) with fraud and multiple violations of U.S. securities laws for alleged "massive ongoing fraud" involving $7 billion in certificates of deposits.[3][4] The Federal Bureau of Investigation (FBI) raided Stanford's offices in Houston, Texas; Memphis, Tennessee; and Tupelo, Mississippi.[6] On February 27, 2009, the SEC amended its complaint to describe the alleged fraud as a "massive Ponzi scheme".[7] He "voluntarily surrendered" to authorities on June 18, 2009.[8][9] On March 6, 2012, Stanford was convicted on all charges except a single count of wire fraud.[10] He is serving his 110-year sentence at United States Penitentiary, Coleman II in Coleman, Florida.[11] In September 2014, Stanford appealed his conviction; however, the appeals court rejected the appeal in October 2015.[12]
https://en.wikipedia.org/wiki/Allen_Stanford
DesertDiva
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Re: Offshore CD at higher rates?

Post by DesertDiva »

Silk McCue wrote: Thu Jun 04, 2020 7:29 am Seriously? Offshore banks for a CD, or for anything? What could possibly go wrong?

Cheers
You took the words out of my mouth!
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