04JUN24- #Ecuador #CDs 'The interest rate on fixed-term deposits in June is the highest in the last fifteen years: how much do I earn if I deposit $10,000 for a year?
"The interest recognized by financial institutions such as banks and cooperatives for fixed-term deposits (CDs) reached a record percentage of 8.44% in June 2024, according to the history published by the Central Bank of Ecuador every month.
It is the highest performance in the last fifteen years, at least since January 2008. (Yes, there are institutions that offer higher returns for extended CDs).
The trend of investing in banks and cooperatives, freezing deposits for a certain time to receive a profit in exchange from the chosen financial institution, continues because there is a high return.
In the case of fixed-term deposits, we must look at the reference passive interest rate, which is what financial institutions pay in exchange for maintaining a deposit for a certain period of time.
The ECB publishes the annual reference deposit rates depending on how long the amount remains.
The reference deposit rate in June 2010 was 4.4%, so it rose 4.04 points from then until June 2024.
And between June 2023 and this month it went from 7.03% to 8.44%.
High inflation and the increase in interest rates abroad push and pressure local banks to also raise interest rates within the country so as not to lose their deposits.
The percentage is an average, since ultimately the return received will depend on what each financial institution recognizes and the time the amount is frozen.
How much interest do I earn if I deposit $10,000 in a fixed term for one year?
According to the ECB's reference interest rate table, the annual return for freezing a deposit for a period of 181 to 360 days is 8.48%.
If a citizen freezes ten thousand dollars in a policy for a period of 360 days, he will receive $848 in interest, so upon completion of the term he would receive $10,848.
The most used term is 181 to 360 days, which is adjusted depending on the time that it is finally decided to freeze.
For example, if you decide to open a term account or policy with a deposit of ten thousand dollars, freezing them for 210 days (seven months), the capital will earn a cumulative return of 4.95%, which means $495. In the end, you will receive $10,495.
But if the agreed time is 240 days, that is, for eight months, the return that the same ten thousand dollars would earn would be $565 with a return of 5.65%. Finally, the amount that the depositor will receive will be $10,565.
The calculation is made by dividing the interest for twelve months, in this case 8.48% for 12. The result is multiplied by the number of months that the money will ultimately be kept frozen.
The agreed performance will be obtained the moment the planned period begins to run.
How much money is there in the policies?
The last figure available corresponds to the month of April 2024 when fixed-term deposits in private banks totaled 20,793.61 million dollars.
Added to this value are the 14,723.43 million dollars that are in policies of the institutions of the popular and solidarity economy (cooperatives and mutual societies).
Which adds up to a total of 35,517.04 million dollars.
The most used term in banks and cooperatives is 181 to 360 days with 10,478.56 million dollars frozen in banks and cooperatives.
In April 2024 there were 386,580 clients with fixed-term deposits in private banks, according to the Datalab system of the Association of Banks of Ecuador (Asobanca).
The latest figure available from the Superintendency of the Popular and Solidarity Economy, which regulates cooperatives and mutuals, indicates that a total of 793,987 clients had a policy in this type of financial institutions in March 2024.
#ecuadorfinancialfuture #terminvestments #CDs #CertificateofDeposit #interestrates
🤠iffin you gonna move down or remain in Ecuador on into 2025, get prepared for whats a coming down the pike🥷🏼its not and has not been just a Coastal & #GYE thang, its also a Sierra & Metro #Quito Thanggy as well👮🏻♂️💰
My 2025 NewYears Resolution is more time out on the La G range, zz style, 🎸🥁🎸 cuzz (imho) we gonna dang sure be a needin it🥷🏼if anybody wants to no longer be an outlaw? Call me to join our Qtowne Quito gun club and get legal to tote with a 55hr CCW Course,
now a days The CCW is pretty much streamlined down to this:
plan on about $300 for to join the gun club,about $200 or up to $300 for the CCW course,about $300 for psyche, psycho and toxico exams,
a 9mm Taurus for say $1200.
a 9mm CZ for say $1500.
aprox $80 to $100 for a box of 50rds 9mm FMJ
i see peeps now a days getting legally armed in about a 3-4 months time frame, kinda like a tuff assed visa process!
'Always be prepared' - BSA & SA,
"When guns are outlawed, only outlaws will have guns" - Louis L'Amour (1908-1988) Western novelist of ...
20AUG25 'The 10 most affordable states for retirees in 2025- "Here are the most affordable states, according to Bankrate’s analysis:
West Virginia
Pennsylvania
Delaware
Wyoming
Ohio
Wisconsin
Nevada
Indiana
Idaho
Georgia,
West Virginia
powered to the top with strong performances in both key sub-categories. The state had the lowest cost of living, as well as the fourth-lowest cost of homeowner’s insurance, at $1,009 annually.
“West Virginia has been an attractive location for retirees for the last few years and has seen multiple years of positive net migration — people moving in — despite the fact that the overall state population is shrinking,” says Kates...." -
Premeirs🎥SUN 10AUG25 (9pmET) #CNN "Senior National Correspondent David Culver and team report on the exploding violence in Ecuador, 🇪🇨
Where citizens are regularly pressured to hand over money to gangs involved in the country’s drug trade.
Watch ‘Ecuador: The Narco Superhighway’ on ‘The Whole Story with Anderson Cooper’ Sunday August 10 at 9pm ET on CNN." #CNN #News -
