Certificate of deposit and taxes

by CT
(Japan)

Thanks for the great site! Very informative yet concise!

Do you know of these two companies below? I thought of investing in their CDs but not sure of their financial backing and stability. I would like to relocate to Ecuador.

Mutualista Azuay
http://www.mutazuay.com/

Vazcorp S.A.
http://www.vazcorpsf.com

Coopera CD sounds great but they are a credit union. Have you heard of any feedback from those with Coopera CD and any issues? 

Do you know if CD investment interst earned will be taxed by the Ecuadorian government and how much rate?

Thanks very much.

*****

Mutualista Azuay is rated at A-. VazCorp is rated at AA-. So neither is as solid as some of the banks, but both could be considered fairly safe. See this page for details...

http://www.sbs.gob.ec/practg/sbs_index?vp_art_id=698&vp_tip=2

Coopera is not insured by the government. It guarantees its investments with its assets. On the flip side, I've heard that a lot of their loans are vehicle loans, with a fair number of defaults.

And yes, CD interest is taxed at 12%, the same as everything else. I've read that one year and longer CDs don't have the tax, something I'll be able to confirm when my one year CD expires in two weeks.

However, Coopera says they pay the tax for you on one year or longer CDs, which leads me to believe that there is indeed tax on them.

I hope that answers your questions.

Jeff