Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

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

Tuesday, May 29, 2012 - 10:45 AMBank of China - Details
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
4
Bounty2012Bounty20122 posts since
May 25, 2012
Rep Points: 6
1. Wednesday, May 30, 2012 - 9:57 AM
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.
3
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135
2. Wednesday, May 30, 2012 - 1:12 PM
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.   
1
Bounty2012Bounty20122 posts since
May 25, 2012
Rep Points: 6
3. Wednesday, May 30, 2012 - 7:25 PM
Bounty:  You forget something very important in your "soliliquy" on the China. I may not have a choice about buying products made in China since so much of what we need IS made in China.  I DO have a choice about where I can and will purchase my CDs.  Thank goodness, at this time, we still have a few banks and credit unions "made in America"which are available to me.  If China ever does take over the US and like their other products, I am forced to use their banks, I will have to.  But given a choice, I still prefere "Made in the USA!"  BTW, I have no problems with the Chinese people. 
1
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135
4. Wednesday, May 30, 2012 - 10:11 PM
This is an interesting CD. I am curious about the exchange risk. My understanding is that the Chinese do not let the Renminbi float against the dollar, so this risk may not be all that great. I guess the risk is if the Chinese govt. devalues the Renminbi, but this is highly doubtful because their currency is already seriously undervalued. This may be a good deal, but I would have to think about the exchange risk.
1
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
5. Wednesday, May 30, 2012 - 10:34 PM
Hey Bounty, I clicked on your link, but I am not getting any promotional information. Is your link correct?
1
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
6. Thursday, May 31, 2012 - 4:58 AM
It appears Bank of China moved the CD promotions page location. Here's new new link which has the details (scroll down to see the English version):

www.bocusa.com/portal/newsContent?newsId=128&lang=1
1
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
7. Thursday, May 31, 2012 - 7:40 AM
Thanks Bounty2012 for reporting on this promotion!

I just published this blog post on it.
1
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
Reply