Bank Of China (New York) Offering 1-Yr 2.5% APY CD On Chinese Currency

Bank of China's New York Branch is having a special CD rate on their Chinese currency or Renminbi (RMB).  It is almost the same as a regular US Dollar CD, the only difference is you need to open RMB-denominated account with Bank of China and then open the RMB CD.

Minimum deposit $10,000 USD to qualify the special rate, No maximum.  The bank is FDIC insured up to $250,000 USD. So i think it is pretty save.  However you will bear the exchange rate risk.

They have 2 branches in New York City.  If you live nearby, visit their branch for details.  If you live out of New York, call them to get more information.  They do open accounts for out-of-states customers by mail. 

CD terms can be 3-month, 6-months and 9-month with 1.20%, 1.60% and 2.00% respectively.  Promotion only last one month from 5/29/2012 to 6/29/2012

Here is the link to their promotion information.  

Bank of China (Newyork)

 

I opened one last year because they had a same promotion last year and Wall Street Journal had an article about it.  

here is the link Five Reasons to Open a Chinese Bank Account - WSJ.com

I just can't get excited about China offering us such higher interest rates than our own banks.  It's like we are loaning them "our" money so they can turn around and buy more of our treasuries and have an even larger net to throw over us when they get tired of playing with us.  I don't think China needs the money that bad that they have to pay such higher rates to get us to grab their CDs.  I can't put my finger on it "yet" but something seems very wrong here and the US will eventually end up paying the piper (China) when the time comes.  This doesn't sit right with me, imo.

 

By analogy, you should probably avoid using all the made-in-china products, eating chinese food; no iphone, no laptops, no TVs, and no everything basically, because you would be giving your money to the Chinese so they can turn around build more guided missiles that lock on to your house.  Its not like Bank of China is gonna take your money and give to the government so they can buy more U.S. Bonds.  The fact is China is reducing their holdings of US bonds and is involving in the Euro Zone becase they want diversifications so they dont get too ripped off when the US feel free to Quantitative Easing its economcy, basically depreciating the US Dollar.  You might research related information to see if I am truthful about it.   Anyway, the CD deal is all about business, no politics and no conspiracies.  The Bank wants your money so they can make loans and investments and you get your interest in return.