Quote:
Originally Posted by K9-Lovers
Has anyone checked out the 5.6% rate for a 3-month CD offered by "Integrifirst USA"?
They've been running an ad in the Daily Sun. Their phone is 352-205-8017.
|
Here is how these HIGH CD's work. First of all what are trying to do is lure you into their establishment to sell you a long term Annuity. However some places, if you tell them right up front, that you donot want the annuity will simply process the CD for you.
How the CD Works is you give them say $!0000 (There always is a Max amount you can give them) ..and say they advertise a 3 month CD rate at 5% . What they a do is they buy the CD from a FDIC bank (make sure it is an FDIC insured bank) say at 1.5% that would normall provide $150/year in interest or $37.50 for the 3 months. At 5% your $!0000 should produce $500/year or $125/quarter. SO just like a timeshare presentation where you receive an incentive for comming in to listen, , INTEGRIFIRST USA in esence pays you approx $87.50 to hear about annuities and you see this when they forward your money to the bank that is issuing the CD, they forward your $10000 PLUS the $87.50....so at the end of the 3 months you will receive approximately $10125 the equivalent of 5% on your money...but this really represents the $87.50 incentive plus the $37.50 true rate of return on your CD.
They are normally legit but a hassle for a 3 month return!