12 month 7.75% Certificate of Deposit (CD)

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When searching for CD rates we are often concerned about one thing – the best rate.  Certificates of Deposits (CD) can play an important role in a person’s financial portfolio.  In today’s post I simply want to pass along some interesting (I hope) statistics from my home bank – Bank South Pacific, located in Papua New Guinea.  While CD rates in the States are pathetically low, there are locations overseas that are paying respectable interest rates for their CDs.  For example, Westpac bank in Australia will give you 4.10% for an 8 month CD.  When I searched Bank Rate, the average 1 year CD is 1.66% (10/15/09). 

If you are looking for great interest rates you might want to consider the possibility to placing that money overseas.  You will need to be aware of the impact of currency changes; though honestly, many of the world’s currencies are currently outpacing the US dollar.

Here are the rates for Bank South Pacific (BSP)

1 month            5.00% p.a (per annum)

2 months          1.75% p.a

3 months          5.50% p.a

6 months          6.00% p.a

9 months          3.75% p.a

12 months        7.75% p.a

24 months        8.25% p.a

36 months        9.00% p.a


  1. Back early in 2009 BSP’s rates went from a 12 months CD rates just under 3% to the rates you see above.  While interest rates were dropping all around the world, our interest rate doubled.  I have no idea the reasoning for this.
  2. I suspect that their website has an error; otherwise I can think of no reason why the 2 month and the 9 month terms are so low (in comparison). 

Interesting bank facts from Papua New Guinea (PNG):

  1. The last time I went to the bank I had to wait in line for 40 minutes to deposit one check.
  2. I pay .35 cents for every deposit I make and between .35 –.70 cents for every withdrawal I make, depending on how it is done.  I do, however, get two free ATM withdrawals a month. 
  3. Monthly bank fees are around $2 per month for a traditional, no interest bearing account.
  4. 50 % of the time one of the three ATM’s at the bank are broken.
  5. All cell phones must be turned off before entering the bank.
  6. There are armed guards at the entrance of the bank.
  7. Bank tellers are situated behind steel protective bars.
  8. Banking is a social event.  People spend a lot of time visiting while waiting for service to be completed.
  9. There are only two banking options in my town – Bank South Pacific and Westpac.
  10. I wish I could follow my own advice since I violate most of the 10 reasons to change banks.  Unfortunately, my only other choice (Westpac) has even higher fees.

photo by Brad and Sabrina.

Anyone else know of any places around the world with high CD interest rates?  How does banking in PNG compare to banking in your home town?


  1. says

    I usually keep religion out of my finances, but this blog has some great resources. I never really considered investing in overseas CD’s but 9% seems too good to pass up.

  2. karen says

    I live in Peru,in 2010 banks were paying 6% on dollar cd’s (insured up to 22k) now only 4%. However there are this other financial institutions that pay 10 or 12% on 3 year cd’s, They are called “cooperativas”, if you invest in soles (peruvian currency) you actually can make 18%.
    back in 2006 a dolllar would buy 3.6 soles now buys only 2.6.

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