Author’s Note: This article was submitted by Asdrubal Zamora Corrales as a response to Bank Interest Rates for Term Deposits in Costa Rica, published on March 10th, 2014. Mr. Zamora is an executive in charge of debt instruments and other investments at COOPENAE, the most powerful credit union in Costa Rica. Mr. Zamora’s original article has been slightly edited for grammar and style.

COOPENAE’s Image and Performance

Following the unique and unfortunate events involving COOPEMEX in 2010, COOPENAE’s corporate image has been preserved and remains intact. Immediately after that event, the monthly average portfolio of certificates of deposit decreased slightly for a period of 3 months (February 2010 to April 2010) about 5 points, which is normal, and then continued with excellent pace and stability, which to this day remains. This is a clear sign of the great confidence that our valued investors have in the company and in the remarkable strength of COOPENAE.

The Evolving Style of Tico Investors

While the Tico investor has historically been very conservative, financial culture has been changing significantly in Costa Rica in recent years. 15 years ago, for example, the capitalization of Banco Nacional was 100 times greater than COOPENAE; today it’s only 10 times larger. Interesting, right?

I have had the opportunity to talk and do business with many expats around the country, and they all have shared with me how difficult it is for them to find a private bank or credit union that deals with them in English and without all the tedious and repetitive paperwork required every time they make an investment in state-sponsored banks. Has this happened to you? These are just some of the reasons why state-sponsored banks in Costa Rica are gradually losing capitalization and clients.

Things to be Mindful of When Investing in Costa Rica

If you invest in any private bank or credit union, you have the right to be informed about all the current financial indicators of the entity in order to make the best investment decision possible. Although all investors can check our Fitch ratings, there are other important tools that the investor may request or demand to see, such as the “Ficha Camels” from SUGEF, which is published frequently. These reports list the key financial metrics and provides official ratings on the performance of all financial institutions in Costa Rica.

How to Safely Invest Your Money in Costa Rica

People often ask the classic question: How safe is my money in COOPENAE? As indicated in the previous article, we are not a state-sponsored institution. COOPENAE, however, is the largest credit union in Costa Rica, the largest in Central America and the fourth largest in Latin America. Furthermore, COOPENAE is:

• Rated by Fitch (F1+ and AA-).
• Duly supervised by government regulators in Costa Rica.
• Audited by well-known international audit companies.
• An institution with more than 47 years in the financial markets.
• Currently 90,000 members strong.

Most of our loans are made to government employees in Costa Rica; this means that we receive our payments via automatic monthly payroll deductions. Our credit default rate has been under one percent over the last 12 years (loans more than 90 days unpaid).

It is true that private banks or credit unions can fail in Costa Rica; however, each financial institution must provide the openness and transparency to continuously display and demonstrate financial performance in order to build trust and promote the health of its business, and this is something that COOPENAE has done throughout the years.

The Current Trend for Interest Rates in Costa Rica

The historical trend of interest rates for certificates of deposit has declined; however, COOPENAE remains a very safe and stable option. We offer some of the best options on interest rates for certificates of deposit in Costa Rica, and we offer first-class, personalized client services.

You can contact Mr. Zamora directly at [email protected] if you would like to invest in high yield term deposits or have questions about banking in Costa Rica.