It's important to understand that currency is a commodity and therefore when its in demand the cost increases to those who are in need of hard currency. Not only is there competition between banks but also between countries. This means and certainly in the Dominican Republic that this country needs US dollars to function and expand. Expansion requires Dollars in this region of the world and as the Dominican Republic is seeing some of the fastest growth in the Latin American region it has a thirst for Dollars.

This demand is reflected in the high interest rates available tax free to entice foreign investment so that the government and local business can expand and put in to practice to build new roads and infrastructure.

Many small countries use local incentive such a tax free investments and most people know them as "Tax Havens". The fact that interest paid tax free is a private matter and is not reported for local tax purposes makes the proposition perhaps the most important reason to bank here. Interest rates of course do change daily depending upon the market and demand but are generally quite stable.  
 

For commercial paper in the Dominican Republic, the companies that we do business with keep us informed regarding that latest rates that are available, so then we can pass this information on to you so you can then make an informed decision based upon risk versus gain.  We would respectively like to point out that we  do not stand to benefit financially in anyway by offering one scheme in preference to another.

Commercial paper in US dollars will payout monthly interest in dollars. With regard to Dominican Peso investments this can be arranged by using a  savings account in Santo Domingo with one of the local banks.  At the end of the time period of investment our clients can choose to re-new for another 90 days or request that the capital can be deposited back to their savings account. It need not matter whether or not you  live in the Dominican Republic or abroad as access to your money is always possible through their bank cash point card network.
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Current Interest Rates for Commercial Paper in Dominican Pesos range from 25% to 30%, depending upon the company, length of the investment and also the amount invested.  Deposits of RD $ 1 Million pesos (about £40,000 or US$ 65,000) will naturally pay a higher rate than the minimum deposit of RD$ 100,000 (about £4000 or US$6500 ).
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Current Interest Rates for Commercial Paper in US Dollars range from 7% to 12% depending upon the company, length of the investment and also the amount invested.  The higher rates are available with deposits of US$ 50,000 (£35,700) or more.
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Interest from US Dollar Commercial Paper is tax-free in the Dominican Republic.  Interest from Dominican Peso Commercial Paper is tax-free depending upon the amount invested.  Bank account interest is also 100% tax exempt in the Dominican Republic for both the  locals and foreigners.

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Interest on a bond is normally paid every six months or annually. At the end of the bond period i.e. when it matures, the capital invested is returned you.

Therefore, if you invest £100,000 in a five-year bond at 6%, you will receive two interest payments every year, for a total of £6,000 every year that you own the bond i.e. one payment every six months for £3000. After five years, your £100,000 is returned to you.  It's quite difficult to purchase long-term bonds in the Dominican Republic because many companies are fearful about borrowing money at a high rate for a long period of time.  Just like those who are looking for a mortgage, they do not want to be locked into a high interest rates if rates are likely to go down in the future.  Capped rates over a long period of time is very good for the investor, but is not good for those wishing to borrow money.