How to Invest in Foreign Currency CDs

by Kay Miranda
As the dollar plummets, foreign currency CDs become more attractive.

As the dollar plummets, foreign currency CDs become more attractive.


Foreign currency time certificates are a specialty bank product attractive to investors who want fixed income but are concerned with weak interest rates and falling U.S. dollar values. A CD places money in an account for a higher than normal savings rate because the investor promises to leave the money in the account for the designated period. A foreign currency CD is sold by U.S. banks, operating the same way as traditional CDs except it is buying foreign currency.

1. Find a bank that offers foreign currency CDs. EverBank is the only bank listed offering foreign currency CDs as of 2010.

2. Determine the time frame for the CD. Foreign currency CDs are offered for three, six, nine and 12 months.

3. Review the various currency yield&amp;#039;s available. EverBank has a chart listing 17 country&amp;#039;s rate for the different time frames or call EverBank at (800) 926-4922 for more information.

4. Check the exchange rates to know what a $10,000 investment is valued in the currency you are considering. This is the minimum investment and may be worth more or less than the CD currency.

5. Buy the CD with EverBank. Follow the online templates at for new customer accounts. You can fund the account with an electronic funds transfer from another institution.


  • If currency exchange rates change, your investment may drop below your principal value. These fluctuations are not covered by Federal Deposit Insurance Corporation insurance. The money is covered only if the financial institution fails.

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