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A look at Yankee CDs

By Sheyna Steiner ·
Wednesday, May 23, 2012
Posted: 2 pm ET

Earlier this month a Chilean bank, CorpBanca, announced that it would sell Yankee CDs in the United States to some private and institutional investors. Corpbanca will be the first Chilean bank to sell Yankee CDs, according to the the May 4 Reuters story "Chile CorpBanca to issue US certificates of deposit."

They're not cheap; the minimum investment is $250,000, the story reports.

But what are Yankee CDs?

Last year, Bankrate's banking reporter Claes Bell wrote a story on Yankee bonds; they're bonds from foreign companies issued in dollars. Yankee CDs are the same -- certificates of deposit from foreign banks issued in dollars.

They're typically only available through the New York branches of foreign banks and carry minimum investments of $100,000, according to Investopedia.

Unlike CDs issued by domestic banks, Yankee CDs are not FDIC-insured.

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