Name: Is it a good idea to put money in banks in foreign countries to take advantage of the higher rates?
Uploaded: 2022-09-10T05:13:04+00:00
Duration: 1 min 50 s
Description: Good question. No, putting money in foreign banks buying their CDs is not going to lead to good results. First, you are going to have a loss on the exchange rate when you move from currency 1 to curre

3 years ago

Is it a good idea to put money in banks in foreign countries to take advantage of the higher rates?

Good question.

No, putting money in foreign banks buying their CDs is not going to lead to good results. First, you are going to have a loss on the exchange rate when you move from currency 1 to currency 2. Second, if the bank is offering higher rates of return on their CDs this is often because the domestic currency has much higher rates of inflation.

A much better plan is to purchase limited partnership interests in multifamily apartment communities or to purchase corporate income bonds of privately held companies that pay higher rates.

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