Everbank Icelandic Krona 13.10% Apy 3-month Cd

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Everbank Icelandic Krona 13.10% Apy 3-month Cd

Posted on 01/05/2007 06:27:00 | Link | Post Comment

Empty Spaces Inc. said...

have you looked into everbank.com's icelandic CD? it pay ~10%

EverBank offers a 13.10% APY 3-Month Icelandic krona CD. The yield looks very attractive so I did some research on this CD. The CD is FDIC-insured. And the reason why the yield is so high is because Iceland is combating inflation and the banks are offering high-yield CDs to combat inflation. So what's the big catch on this CD? I found out that you can lose on principal in the CD, because the krona currency fluctuates. Also, there's a conversion fee.

The way it works is that your US Dollars get converted to Icelandic kronas and then at maturity if you decide to withdraw, the kronas will be converted back to US Dollars. The exchange rate then could be different from the start of the CD.

Does any one has experience with Icelandic CDs? Do you think it is low risk? Are they are other catches I am missing?

7 Comments:

: How could this CD be FDIC insured? It is not an investment vehicle within the US banking system?; posted by Wilbur4s @ 04/12/2007 21:41PM

: Has anyone invested in the Iceland cd
thru everbank????
What was yyour findings?; posted by Rose @ 07/18/2007 13:47PM

: I have made 5% in just over a month in the Everbank CD because of the difference in the dollar rates. That's an annualized return of 60%. As long as the US dollar keeps falling (or remains the same), you will do well.

And, oh yeah, Everbank is US based and so is FDIC insured.; posted by Wangzen @ 10/22/2007 10:48AM

: the ISK is a highly volatile global currency. Once you buy a cd, you can't time your exchange, so you have no control on whether or not you gain or lose on the exchange.; posted by jiggy @ 12/06/2007 00:36AM

: I just finised setting up an account with Everbank today to open an Icelandic cd. This is my first investment so I hope it pays off and teaches me something(in a positive way of course!). Is the euro less volatile?; posted by Mike @ 01/15/2008 15:23PM

: The (financial) world is big while (financial) Iceland is small. The population is only 313,000, about equal to a middle-sized city in the US. They have a good reputation for rule-of-law; don't get involved in wars; and areg generally admired. So why don't these CDs get snapped up in a flash? Indeed, why doesn't the yield get bid down to more conventional levels?; posted by Zeke @ 02/15/2008 11:02AM

: The Icelandic CD by Everbank is no longer offered at that rate. It is around 4%. Everbanks highest CD now is the So. African rand, at 8%.; posted by David @ 04/16/2008 11:32AM

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