saving interest rates and banking

[rossi]

Hello;

some banks seem to be offering very good saving rates, specially if you dont withdraw the capital for a length of time.

has anyone opened any of these accounts? how secure is the investment? any banks you would recommend?

thank you

 

[KevinK]

be very careful...the better the rate the higher the risk...banks do not work like in the us and they are not safe...my ex lost 75% of her capital trying(against my advice) to get that extra bit of interest at the wrong time.

 

[elhombresinnombre]

be very careful...the better the rate the higher the risk...banks do not work like in the us and they are not safe...my ex lost 75% of her capital trying(against my advice) to get that extra bit of interest at the wrong time.

Seconded. The headline rates are really eyecatching but once you subtract the charges and the transaction fees and the taxes and the taxes on the charges and transaction fees plus the charges levied just because we feel like it this week, the rates are really nothing very special. And the government could change all the rules overnight again as they did in 2001 and as they've done in subsequent years with other financial situations.

 

[AngelinBA]

When banks start saying ´Please come and give us your money´(by offering incredible interest rates etc) they´re not trying to be nice and help you save, it´s cos they really need your money. And if they need it that bad, you don´t want to give it to them! Same thing happened before the crash in 2001.

 

[John.St]

Not only be very careful as KevinK writes, remember the 28 percent inflation!

 

[rossi]

Lots of useful info, many thanks. I guess investing here is quite risky

 

[Canick]

as a rule of thumb I would keep only what you need as a minimum in the bank and the rest keep in 'your control'. that may mean a safety deposit box or a treasure map...
but both usually are safer than keeping it in the bank itself.
as many have said above, the higher rate, the higher the risk.
was not so long ago (2001) that they were offering HUGE savings rates and many locals and expats rushed to put their money even in 'safe' US named banks here in Argentina.
When the crisis hit, they devalued the currency, froze your assets and said, "Discúlpame"...

 

[esllou]

I wouldn't trust a single argentine bank with a single centavo of mine. Never. Ever.

And that's not "forriner parnoia". About 50% of argentines are equally paranoid that I've met here. The long lasting effects of banks just closing their doors in 2001 and saying "oh, sorry, you've lost all your money, come back next year and give us another load of your savings, it won't happen again, honest!" cannot be under-estimated.

 

[rossi]

Any information or advice about investing in property, please?

 

[Matt84]

Opening a bank account in Uruguay is sometimes a lot safer and even easier than in Argentina. At least you know that banks in Uruguay are not only unlike Argentina's but even unlike America's. It's basically the only banking haven that is not classified as such. And the Uruguayan Peso has been getting stronger and stronger. Brazil's rise will only make it stronger.

On real estate investment: there are a lot of opportunities comprising all price ranges. Most everybody you meet will have or know someone who has something for sale. This is a double edged sword. On the one hand you are free to visit as many properties as you wish dealing with owners (like soloduenos.com) and getting a picture of the market (which you always must contrast with the USD exchange rate, and the Dollar's own inflation).
On the other hand you can waste time getting into messy deals with clouds on the title. If you go to a well respected Realtor you wont have that problem, but maybe neither the real opportunities.