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Everbank cds and low current cd rates
04-05-2008, 01:02 PM
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#1
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Dryer sheet wannabe
Join Date: Apr 2007
Posts: 18
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Everbank cds and low current cd rates
Is anyone buying Everbank cds like the euro, world energy cd, Austrailian dollar cd etc.? With cd interest rates so low do you think it is worth the risk?
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04-05-2008, 01:32 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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No.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-05-2008, 01:42 PM
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#3
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Dryer sheet wannabe
Join Date: Apr 2007
Posts: 18
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dollar bull cd
Since you said "no" do you think the dollar is going to appreciate? If so, would you buy a dollar bull cd?
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04-05-2008, 01:48 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Nope.
I bought my cd's at 6.25% the year before last. I wouldnt buy anything at todays rates, I wouldnt commit to taking on a huge risk on currencies, either foreign or domestic.
Taking on risk by reaching for oddball yields isnt very smart IMO. You can get better returns elsewhere with the same or less risk.
Hell, I'd think you'd have better returns and less risk with ISM/OSM. But thats looking a little poor in terms of risk/reward to me as well.
I'd put my cash into a crappy MM account, wait for the good rates from federally insured bank products, and then buy them.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-05-2008, 02:34 PM
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#5
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Recycles dryer sheets
Join Date: Aug 2007
Posts: 433
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Quote:
Originally Posted by cute fuzzy bunny
I'd put my cash into a crappy MM account, wait for the good rates from federally insured bank products, and then buy them.
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The Bunny is right-on about foreign account risks.
Let me elaborate on the return of good FDIC rates however.
It's gonna be a LONG, LONG time.
We prudent savers have the privilege of partly funding the bailout of wealthy financiers by lending our money at ever declining rates.
Thank the government for both of us would you?
__________________
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
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04-05-2008, 02:35 PM
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#6
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Full time employment: Posting here.
Join Date: Oct 2007
Location: New York
Posts: 898
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I'm not buying them, but I do own one.
I bought a bunch of Euro in 2002, and have been rolling over CDs every 3 months since.
__________________
Money's just something you need in case you don't die tomorrow.
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04-05-2008, 03:23 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 4,898
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A couple of questions.
With the Euro so high against the dollar, buying CDs based in the Euro wouldn't be a very good deal right now would it?
Aren't there some fees banks charge to do this for you?
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04-05-2008, 03:29 PM
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#8
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Full time employment: Posting here.
Join Date: Oct 2007
Location: New York
Posts: 898
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Agreed that the timing isn't ideal now. Re fees, Everbank is inexpensive in that regard compared to most retail banks - they have an active retail foreign currency business and try to get customers nationally. If I remember they charge 75 basis points over spot with no commissions.
In my case, was re-patriating and had a bunch of Euro. Anticipating that the Euro was at a high point vis the dollar, I didn't want to convert them back to USD. I did some research as to where I could hold Euros in the US and Everbank was the best option available at the time (2002).
I later bought some Yen too. I've held them for over 5 years.
__________________
Money's just something you need in case you don't die tomorrow.
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04-05-2008, 03:31 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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So what you're saying is that you had a yen for...
nah...never mind...
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-05-2008, 04:40 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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there's a saying that there is only one thing more difficult to successfully predict than interest rates, and that's foreign exchange. i wouldn't want to be trying to do both.
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