Everbank cds and low current cd rates

[DMS]

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?

 

[cute fuzzy bunny]

No.

 

[DMS]

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?

 

[cute fuzzy bunny]

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.

 

[barbarus]

I'd put my cash into a crappy MM account, wait for the good rates from federally insured bank products, and then buy them.

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?

 

[Maurice]

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.

 

[Zoocat]

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?

 

[Maurice]

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.

 

[cute fuzzy bunny]

So what you're saying is that you had a yen for...

nah...never mind...

 

[d]

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.