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90 day cd’s in Mexico


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2 minutes ago, chapalence said:

May I ask what institution you feel comfortable investing with? What is the rate of return?

 

Google Mexican cetes to get a primer on the subject.

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Cetes are a good option available through Multiva and Cetes Direct online. Possibly others. You can set up automatic rollover of 28 or 90 day instruments. Current rates are close to 8%. https://www.banxico.org.mx/tipcamb/main.do?page=tas&idioma=sp

Actinver offers CDs with rates that fluctuate but they never could seem to get the automatic rollover working properly. Once a 90 day CD matured it was supposed to rollover to a new one at the current rate but more often than not the CD matured and then sat there earning nothing.

Multiva has several fixed income options. I've had one for the last couple of years that averaged over 9% but should Mexico start to drop interest rates as predicted, future returns could be lower.

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4 hours ago, John Shrall said:

Cetes are a good option available through Multiva and Cetes Direct online. Possibly others. You can set up automatic rollover of 28 or 90 day instruments. Current rates are close to 8%. https://www.banxico.org.mx/tipcamb/main.do?page=tas&idioma=sp

Actinver offers CDs with rates that fluctuate but they never could seem to get the automatic rollover working properly. Once a 90 day CD matured it was supposed to rollover to a new one at the current rate but more often than not the CD matured and then sat there earning nothing.

Multiva has several fixed income options. I've had one for the last couple of years that averaged over 9% but should Mexico start to drop interest rates as predicted, future returns could be lower.

What is the minimum amount cash required to buy into these funds??

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5 hours ago, chapalence said:

May I ask what institution you feel comfortable investing with? What is the rate of return?

 

Intercam, Multiva, CI Banco...…..all good banks and returns are very similar for all 3.  Depends on time and amount of investment…..just go shopping and compare as the rates move around a little, quite frequently.

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7 hours ago, John Shrall said:

Yes, but the banks withhold the I.S.R when interest is paid. No filing is required.

You have to file if you are a Mexican citizen and taxpayer with CURP and RFC  nos.  The banks will furnish you withi an annual report of your earnings and retenciones de impuestos ( taxes with held).

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Just remember currency fluctuations. If you are not buying anything imported from the US or that contains any parts from the US you can probably forget that advice. If you pay your rent in USD perhaps not ignore that, YMMV.

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Short term ctes are good for people who think the might need the cash sooner rather than later and for people who don't want to be stuck with a low rate if rates rise. Lots of people "ladder" CD's or Cetes and if you Google that you will see the technique and reasons for doing so.

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5 hours ago, chapalence said:

Can you ask that the interest also be rolled over? Seems like a good idea if you don't need the money immediately, but I'm a financial numpty.

Also, is it advisable to spread the CDs around? Say one at Multiva, one at CI Banco and one at Intercam?

Thanks for helping :)

 

Don´t know them but i hear good things about Banco Azteca.  I prefer Mexican owned banks to the International chains of banks that operate in Mexico because their service just seems so much better.  The only one that seems a little skittish to me, is Actinver.

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On 8/27/2019 at 11:17 AM, chapalence said:

Can you ask that the interest also be rolled over? Seems like a good idea if you don't need the money immediately, but I'm a financial numpty.

Also, is it advisable to spread the CDs around? Say one at Multiva, one at CI Banco and one at Intercam?

Thanks for helping :)

 

Too much paper work spreading cd's in different banks

yes  each bank covers you for about !30,000 US dollars, FDIC in USA mexico  i believe its called  IPAP

I use Multiva, my research shows it well run and financially stable and growing.

I file a FBAR (fin cin 114) each year have to list every Mexican bank as US  Person.

mexico banks are more stable than US banks,  they were not leveraged 70 to1 or more in 2008 like US banks. Lehman 300 to 1

Mexican peso they follow US as US devalued the Dollar, mexico will keep PAR

yes Trump wants a weaker dollar. US Dollar will be worth less world wide,  so yes he peso could go back to 21 or 22

US devaluing the dollar has caused a  gold to up 27%  or more in last year, US dollar lost value 

Mexico in five years will be the largest trading partner of USA and the  one  of the largest financially stable counties in the Americas.

this trade war is great for Mexico, Chinese companies will make products in mexico. not as far to ship.

i love living in mexico and getting over 8% interest at Mutliva.

 

 If you feel like i do that interest may go down, buy 20 years Mexican bonds a 8 1/2 % expire 2032 and lock in your interest rate.

from my research mexico does not have a history of calling in the bonds.

the bonds our bought in the secondary market and can be sold usually in 48 hours or less

yes there is fee to buy the bonds ,but it worth it if interest rates go down

bonds pay interest twice a year.

 

 

 

 

 

 

 

 

 

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