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Where and why do you have a bank account in Ecuador?

When I arrived to Ecuador,  I needed to deposit $25,000 for the purpose of my resident visa application.  I decided to make that deposit at Banco Pichincha because I read a recommendation somewhere by another expat.

In order to make that investment, I was required to open a savings account with them that comes with a Visa debit card.   I was despositing checks periodically into this account drawn from my U.S. bank that would take about 2 weeks to clear.   Pichincha currently has a $3,000 deposit limit on out-of-country checks.

Now that I have a checking account in the U.S. that doesn't charge ATM fees, I have less of a reason to maintain a balance in my Pichincha savings account.

Since I am now a citizen, In about 9 months when my CD expires, I expect be able to take control once again of my funds.  I will leave the money in Ecuador, but I will have to make a decision as to whether I want to chase a higher interest rate with Certificate of Deposit with perhapsJEP.

Nards wrote:

In about 9 months when my CD expires, I expect be able to take control once again of my funds.  I will leave the money in Ecuador, but I will have to make a decision as to whether I want to chase a higher interest rate with Certificate of Deposit with perhapsJEP.

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JEP has a good record and has paid higher interest than banks, but -- as they say on Wall Street -- past performance may not be indicative of future results.

In this case -- meaning in the overall scenario of Ecuador -- placing substantial money in an account whose balance is not guaranteed, una cooperativa, could be a gamble.  Depressed economy, devastated industries such as real estate and coast tourism, new presidente being elected in several months.  Who knows if there would be another ‘run' on a co-op as happened in Cuenca about four years ago, hurting some Expat depositors?

Another thing frequently heard on Wall Street is this...

The greater the reward, the greater the risk.

I personally wouldn’t invest more than ten percent of liquid assets into an Ecuador co-op.  On the other hand,  lower-interest-paying banks here are guaranteed up to about $33,000 per depositor/account at last word.

cccmedia in Quito

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