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Ecuador Coop Pays 10.5%

There is an Ecuador Banking Coop that pays 10.5% interest.

This is a nice interest rate… just do not rush in blindly as Ecuador banking systems can be high risks.

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Ad by the Coopera last St. Pat’s Day in English. The Coopera in Cuenca is actively recruiting expats and if you live in Ecuador this may be one good place to hold limited assets.

The Coopera was brought to my attention when a reader sent this question:   Gary, We (my wife and I) will be spending the month of September in Cuenca in a rented condo.  Are you familiar with Coopera SA which sounds like it is some kind of credit union.

They are offering CDs paying 10.5% interest and are supposedly insured for up to 25,000. Have you ever heard of this organization ? They also offer a very inexpensive medical and dental insurance plan to their members.

I replied: I do not know them and have asked Stephen Milden the head of Ateam Ecuador in Cuenca.

Take care though.  Plus the Monetary Expat Act means that for every dollar you put into Ecuador, you can only take back  95 cents. If you are not spending that money in Ecuador, your 10.5% interest drops to 5.5% before you even start.

Stephen replied:   The Coopera is well known and respected here. We are members and, as Gary pointed out in the link he sent, exercising caution as to where you bank and applying limits on how much you bring into Ecuador is sensible.

This is not because we distrust Ecuador in particular. We don’t bank in any one jurisdiction nor do we keep our funds only in dollars. With the upheavals in the financial and banking sectors, we don’t trust any of them.

If you don’t speak Spanish, I’d be happy to go with you to the Coopera.  My local cell is 095225308 and you have my email. Any other questions please let me know.  Regards – Stephen.

Take great care.   We have not banked beyond our day to day needs in Ecuador since 1999 when all the banks in Ecuador closed.   We lost a fair amount then and do not want to be bitten again.

You’ll want to think about banking when you move to Ecuador.

You can use banks like this without even opening a bank account.  

Ecuador’s currency is the US dollar so no currency exchange is required coming or going.  This makes banking easy for those who retire in Ecuador to begin…

There are several ways to bank in Ecuador without having an Ecuador bank account.

Let me add again.  I do not trust Ecuador banks.  Once bitten twice shy, plus it is hard for anyone without a resident visa (which Merri and I do not have nor desire) to open an Ecuador bank account.  There are better ways. We also have not held a resident visa.

One way is  to use ATMs.  Merri and I never had an ATM card in the US but found that this is a good way to access cash there. We also have a safe in all our rooms in the Inn. Most hotels offer free safety deposit boxes so when we arrive, we just put all our cash, wallet with credit cards and passports in our safe box. Then we just have a bit of cash like $20 or so in our pockets.

Ecuador ATM’s

Merri and I have lived off of ATMs in Ecuador for our day to day cash needs..

ATM’s are in almost every village in Ecuador and are compatible with international credit cards.

Visa credit cards work at ATMs operated by Bank of Guayaquil, Pichincha, Produbanco and Banco Pacífico. Each ATM shows the logos of which cards can be used on that machine. We use our regular ATM cash card issued by our Florida bank at this Bank of Pichincha branch on Cotacachi’s second smaller plaza.

Ecuador-multi-currency-plaza

The plaza is pristine because it is maintained by the bank.

Ecuador-multi-currency-atm-sign

The bank is next to the police station and the second smaller Cathedral.

There are three Cotacachi ATMs. The other two are on the main street 10th of August. Here is one of them…the newest of the three.

cotacachi-road-work

We are allowed to take $500 a day from the Pichincha ATM and $300 a day from the others.

Since I wrote my first book, Passport to International Profit in the 1970s, my mantra has been to have what I call a “Six Point Command Posture” which is to:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country                                                                                                      Have a second residence

We live in the US and Ecuador, bank in Denmark with an overseas company that earns in many countries.

We use Jyske Bank in Denmark for our global investment management needs and our cash needs in Ecuador through Jyske Bank’s VISA debit cards.

This card makes it easy to access cash from your Danish bank account.  The Danish government is one of the few remaining AAA rated countries when it comes to credit risk.  Bank accounts are guaranteed by the Danish government up to appx. $125,000.

Jyske Ecuador & Global Service.

Even US clients who have managed accounts at Jyske Global Asset Management  (JGAM) can have a VISA debit card.

JGAM opens a specific on demand account with Jyske Bank so funds can be made available via the card.

These cards can provide access to cash anywhere in the world…including Ecuador.

Jyske offers three different cards to match different needs.   Each type of card provides considerable flexibility.

You can choose to have the card denominated in a number of currencies based on your choice.  An account is created at Jyske Bank in the same currency. No matter the account currency,  the cards can be nominated in euro, US dollar,  British pound, Swiss franc, Swedish or Danish kroner.

If you have have dollars invested and are drawing dollars in Ecuador, you can eliminate forex costs by denominating your card in US dollars.

For more information US investors can contact Thomas Fischer of Jyske Global Asset Management at fischer@jgam.com

Non US investors contact Rene Mathys of Jyske Bank at mathys@jbpb.dk

Gary

Cuenca Real Estate Tour

Cuenca real estate offers excellent quality and value for expats in Ecuador. Here is a shot of downtown Cuenca.

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Downtown Cuenca

Ecuadorliving.com was the first website to recommend Ecuador real estate nearly two decades ago and we continue to assist Ecuador Living Club members in arranging Ecuador tours as the most efficient way to learn about Ecuador’s real estate market.

Ecuador real estate markets have evolved to the point that group tours are counter productive. When Ecuador Living began,  there was not enough property… easily reached… for sale.   Little English was spoken and the properties were often hard to reach and spread far apart.

Ecuador real estate group tours helped readers reach these properties.

Today there are many properties and group tours can inhibit zeroing in on specific wants and needs.

Ecuador Living’s Real Estate Tour service helps its members create custom tours that fit each person’s schedule and particular desires.

The personalized tours are like AAA Trip Tics and help in three ways.

#1: The dates of your tour can be set to fit your schedule.  Ecuador Living makes sure you don’t book a tour on holidays or times when you would not be able to see property.

#2:  The tour service helps you zero in on your particular needs in real estate so you do not want to spend time viewing properties that are not of interest to you.   Once we have your tour dates and specifications, we contact brokers, developers and sellers of real estate in advance to help focus your search.

#3: You can turn these tours into adventures and overall Ecuador introductory tours so you see many different areas of Ecuador as you wish.

Ecuador Personalized Real Estate Tours are the most efficient and inexpensive way to get an overall view of Ecuador real estate.

Because we are publishers who owe our loyalty to our readers and not real estate agents, you can be assured that the tours are based on your wishes, not on any broker’s desire to sell a specific property.   Ecuador Living does not participate in any proceeds, commissions etc. from real estate sales.

For example if you only want to view farms with acreage and want to see farms in three areas… such as Cuenca, Imbabura and the coast we can help you organize a tour for this.

A recent article entitled “Building a charming destination”  by Paola Vellejo in the Bienes Raices Clave (Key Real Estate), Ecuador’s leading real estate magazine shows how experienced we are in Ecuador real estate.

You can see this article below.

Organizing the tour is a three step process.

#1:  This is a service unique to our Ecuador Living Club members.  To begin, become a member here.

If you are already a member please go to your password protected page at the link below.

#2: Once you have enrolled please use the real estate tour page to describe your real estate needs and email to us.

#3: We will research the trip… airfare and internal travel costs… hotel… food… guide and time required for each aspect of the trip.

To begin the set up of your tour please join the Ecuador Living Club here.  

Existing members please go to your password protected page.

The article entitled “Building a charming destination”  by Paola Vellejo in the Bienes Raices Clave (Key Real Estate), Ecuador’s leading real estate magazine shows how experienced we are in Ecuador real estate.

ecuador-real-estate-magazine

A translation of the article says:    In conversation with Britain’s Steve Marchant, familiar with the housing boom of Cotacachi, you can see the origin of the phenomenon of its growing popularity as a destination for retirees is the result of the sum of a series of coincidences that inevitably arise from one person: Gary Scott.    Scott was the spark that ignited the housing boom of Cotacachi for retirees.

You can read that article in Spanish here.

See a Google translation to English of the article here.