Grand Cayman bank accounts. What's the catch?

[zuluking]

I was watching "The Firm" today and after the scene in Grand Cayman I googled Grand Cayman banks. What's the catch? Some are offering 18% a year. Do you have to a minimum of 1 mil or something? Just curious to see what the deal was. Thanks.

[LondonBroil]

They are scams. There's no way to get a guaranteed 18% return a year without significant risk.

[The4Aces]

in the 70s or 80s in the US you could get ~ a 18% bank account.

[adios]

Ah that didn't last very long as Volker induced a recession by raising short term rates to the moon to as he put it "break the back" of inflation. Bonds have basically been in a bull market since IMO.

[LondonBroil]

[ QUOTE ]
in the 70s or 80s in the US you could get ~ a 18% bank account.

[/ QUOTE ]

Our friend here was not asking about going back in time to get 18%.

[GeorgeF]

post a link.

[The4Aces]

you said there was no gerountee. I was just giving an historical example that showed there it is possible.

[Aceshigh7]

You won't find U.S dollar accounts anywhere either in the U.S or offshore that will give you 18%. I think what you might be referring to are the foreign denominated offshore accounts. I actually think some of those are pretty good investments but of course they do entail varying amounts of risk as well as the exchange rate fluctuations which could work either for or against you.

[ShawnHoo]

A business acquaintance who actually lives in the Cayman Islands told me that there you *pay* interest, based on LIBOR, to have the bank hold your money for you. This was for a checking account, so the 18% offer you mention might be different.

In return, you get some unbelievable perks (kind of like Amex's "Black Card" on steroids).