“So what percentage interest did you want?” She asked.
“Well, for me to deposit money with you in a CD, I’d need 10%.” I said to the bank rep in Ecuador.
“But for the smaller amount you’d like to deposit we only offer 8% (annual interest).” She responded.
“Well, OK, OK, we can offer 9%.” She added.
“And I can only deposit it fixed for a month, in other words, I need to go month-to-month. It can rollover into the next month if I don’t need it.” I said.
That’s what the conversation was like this week as I negotiated my interest terms with a “Coopera” where I do business here in Guayaquil, Ecuador.
Cooperas are like credit unions back in the States.
Not quite banks, but they offer better interest rates than the normal banks.
And foreigners can open an account there with just a passport whereas the normal banks in Ecuador often ask for proof of residency and other tedious requirements.
For amounts over $20k you can usually get around 10-11% annual return.
For amounts less than that usually about 8-10% APR.
But whatever rate they quote you, its highly negotiable.
Don’t be afraid to walk out.
They’ll probably call you.
But are they safe?
Just choose a reputable one with a proven track record.
I like Coopera Ltda as they offer good rates, have 12 yrs of experience and have offices in Guayaquil and Cuenca.
But remember you money is not insured nor regulated as it is in normal banks or even like credit unions in the US!
A great first step to any property search in Ecuador is to open an account and deposit your money (probably just sitting around doing nothing) on a fixed month to month CD deposit so that if you need the capital you can get it, and if you don’t it’s at least producing something.
It also gives you an account in Ecuador where you can transfer money to in case of a property purchase.
This is exactly the stage in my property search where I’m at right now, today is the first of a series of updates you’l get from me detailing EVERY step of the way as I begin a new property search and investment on the coast of Ecuador.
Then make a play with it.
Maybe re-sell, maybe not, we’ll see what the situation dictates.
I’ll fill you in on all my mistakes, highs, lows, and successes too.
You’ll have a great ‘birds eye view’.
My budget for this experiment is $30k or less, and basically I’m looking for a good investment on the coast.
Other than that, I’ve got an open mind (like you should too when property hunting in Ecuador).
So, stay tuned, my money is now in the Coopera making 9%, this is going to be good!
And I won’t be emailing once a week, I’ll email the important updates to you as they happen.
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