patrick.net

The central bank's interest rate in the United States is .25%, the central bank interest rate in Brazil is 11.75%. There has to be a money making opportunity here. Just as currency brokers make money by buying and selling currency on a daily bases I would think you could deposit money into a Brazil bank and earn a far higher interested rate than in a United States Bank. The current interest rate for saving account for a Brazil bank is currently 10.75%, that's far higher than any United States bank, government bond or other investment. From what I read, it's difficult to open an account unless your a resident of Brazil. I would think it would be a great investment opportunity for someone in Brazil. Form a corporation and take in money from over seas investors, then deposit the money in a Brazil bank, you could give foreign investors a good 8 or 9% interest on there money and skim the remaining interest off the top for yourself. I guess the main issue is how risky is all this. Are Brazil Banks insured by a federal agency like the FDIC? (I see that banks are only insured to deposits to 80,000 Reals with is currently equivalent to $43,000). And is it easy to get your money back when you want to withdraw. I'm sure it's easy enough to sent them money, but if you have to fill out 50 forms to transfer the money back to you, it's really not worth it.

#investing