Opening up a CD?

Question

Hi everyone, i was just wondering if it might be a wise investment to open a cd in say europe instead of the U.S. and if so how would i go about doing this if i live in the U.S.?

Answer 1

You subject yourself to what is called currency risk. The euro vs. dollar rate should be looked at very closely. CD's are good when the economy is up with higher interest. Interest is horrible now. My advice is find a safe mutual fund or municipal bonds.

Answer 2

I think it is not a good idea. Like the guy above me said, you might rick some lost due to exchange rate and in some countries you can't pull out all of your capital at the same time.