Home: VeryBestCdRates - Alternative Investments - COACECSS - Panama Federal Credit Union Rates
Major World Market Graphs at a Glance
  ==>  " WARNING NO FDIC "   <==
Major Markets At A Glance

Stretch your dollars at "VeryBestCDRates.com ==>  "The Retirement Advisor" <==

Best Savings Account Rates
September 11, 2011: COACECSS in Spanish is "Cooperativa de Ahorro y Crédito" a Cooperative for savings and credit.  In the US, we call these "Panama Credit Unions." Panama Offshore Legal Services, Attorneys at Law, claims the following on their web site:
  • "According to some professionals in the industry, credit unions are considered to be more secure and less risky than banks for several reasons."
    • Beware of weasel words. The don't cite ANY sources!  Could the professional be the janitor who cleans the building!
  • "Currently, many credit unions are paying as much as 4% interest on basic savings accounts, up to 6% interest on educational savings accounts, up to 8% interest on 5 year time deposits (CD’s) of at least $100,000, and as much as 9% interest on retirement savings accounts. They can afford to pay higher interest rates to their depositors because they earn higher interest on their loans, and most credit unions have a very low loan default rate since they make small loans, require co-signers, and require direct debits from borrowers’ salaries for payments."
    • =>We don't see how this makes a loan safe.  We think the ONLY safe loan is one that has FDIC insurance or other US Government backing.
  • Although most Panama credit unions restrict membership to Panamanian residents.... there are some credit unions that do accept outsiders, and foreigners are often permitted to open accounts with those credit unions.
    • =>There is the pitch.  They probably get a lucrative fee to introduce you to a banker who will take your money with the promise to pay a high interest rate.  Why does this remind us of loan brokers selling loans to people who couldn't afford to make the payments at the top of the housing bubble?
WARNING!!!!  If this was a safe bet, you can be sure Bank of America, Wells Fargo, CitibankChase and other banks would lend the money to this credit union for 9% rather than make 15 year home loans to people in the US for around 3.5%.

We recommend this ONLY for those who have "high risk capital" they can afford to lose.  IF you can not afford to lose this money, then stick to CDs with FDIC insurance.

Back to Alternative Investments

Panama credit unions are regulated by the “Instituto Panameno Autonomo Cooperativo” (IPACOOP) website is www.ipacoop.gob.pa


Article: Beware of Annuities

Top of Page


Very Best CD Rates Meter
CD Rates Meter

To advertise on this page, please
contact advertising@<REMOVE>verybestcdrates.com