Saturday, January 16, 2010

Best Cd Rates In The Country What Are The Drawbacks To Investing In A Foreign Certificate Of Deposit?

What are the drawbacks to investing in a foreign Certificate of Deposit? - best cd rates in the country

By the way isdeclining of the dollar against most foreign currencies, I am planning a CD in the European Union's foreign Stick pays a much higher return. I can imagine that the highest returns and the currency is held upward in value against the dollar, is a perfect situation. What are the disadvantages? The tax consequences?

2 comments:

The Shadow said...

A disadvantage is the risk. They seem to think that it is guaranteed that will weaken the dollar. Perhaps to be guaranteed, but not with certainty. When the exchange rate on the wrong path, you may lose money when the CD matures and is converted into dollars.

s and d e said...

if a foreign CD, then you are not insured by the FDIC. something happens - is very bad.

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