[ABGinVA]

There is an ad in today's paper from First Financial Guarantee offering a 6.01% 6-month CD. The devil on my right shoulder says, "Tempting". The angel on my left shoulder says ,"That's too good to be true!".

I called for specifics and got the feeling the ad for the CD was bait to establish a relationship that would lead to other investment recommendations.

Before I toss the ad, I thought I would poll the audience...For those of you who have been here a while, what is your experience with First Financial Guarantee?

[retiredguy123]

After a little research, it appears that First Financial Guarantee is not a bank, but they buy or "broker" the cds from FDIC insured banks. So, you actually buy the cd from a bank, not directly from First Financial. Also, you must open the account "in person". Since First Financial is located in Clearwater, does that mean you need to drive to Clearwater, or do they have a local office? In any event, I would pass on the cd.

I will also add that this company is an LLC (limited liability company), not a corporation, and they sell life insurance products, including annuities. Personally, I would stay away.

[JohnN]

I'd listen to the angel. Pass

[villagetinker]

Looks like RetiredGuy already did what I was going to suggest, and I agree with his conclusion.

[Arlington2]

Considering it is about twice what anything else is providing it smacks of scam.

[Plinker]

Originally Posted by ABGinVA

There is an ad in today's paper from First Financial Guarantee offering a 6.01% 6-month CD. The devil on my right shoulder says, "Tempting". The angel on my left shoulder says ,"That's too good to be true!".

I called for specifics and got the feeling the ad for the CD was bait to establish a relationship that would lead to other investment recommendations.

Before I toss the ad, I thought I would poll the audience...For those of you who have been here a while, what is your experience with First Financial Guarantee?

They are representatives of banking and insurance products. The CD offered is for 6 months and they are subsidizing the bank CD to the higher rate they quote in order to get you to meet with them. I believe the maximum you can invest is $20,000. Think of it as the free dinner seminars without the free dinner but instead with a short-term CD bump. Current 6-month CD rates are about 4% so you are at 6%. You can pocket about $200 for the hassle of meeting with them. I have not met with them but know someone who did and signed up for the higher rate. You decide if it’s worth your time and aggravation.

[USOTR]

I would stay away

[wayneman]

Originally Posted by Plinker

They are representatives of banking and insurance products. The CD offered is for 6 months and they are subsidizing the bank CD to the higher rate they quote in order to get you to meet with them. I believe the maximum you can invest is $20,000. Think of it as the free dinner seminars without the free dinner but instead with a short-term CD bump. Current 6-month CD rates are about 4% so you are at 6%. You can pocket about $200 for the hassle of meeting with them. I have not met with them but know someone who did and signed up for the higher rate. You decide if it’s worth your time and aggravation.

You hit the nail on the head. Just a way to get you in the door. No thanks.

[TomPerry]

Sounds like what they call a “Loss Leader” in retail sales.

[Catvillage]

I looked at their ad no where did it say FDIC insured by First Financial. I think I know the "gentleman" involved in the company politely put they are, snakes. They will try to sell you an annuity. When something is too good to be true it is not true. Put your hand on your wallet and run.

[spinner1001]

Originally Posted by ABGinVA

There is an ad in today's paper from First Financial Guarantee offering a 6.01% 6-month CD. The devil on my right shoulder says, "Tempting". The angel on my left shoulder says ,"That's too good to be true!".

I called for specifics and got the feeling the ad for the CD was bait to establish a relationship that would lead to other investment recommendations.

Before I toss the ad, I thought I would poll the audience...For those of you who have been here a while, what is your experience with First Financial Guarantee?

There is no such thing as a free lunch.

Higher return --> Higher risk

What is your appetite for risk?

[Plinker]

Originally Posted by Catvillage

I looked at their ad no where did it say FDIC insured by First Financial. I think I know the "gentleman" involved in the company politely put they are, snakes. They will try to sell you an annuity. When something is too good to be true it is not true. Put your hand on your wallet and run.

The CD’s they offer are from FDIC insured banks, so no risk.
If they increased the amount of the CD to $50,000 for 6 months, the added return over a 4% CD would be $500. For that amount, I would be willing, on a rainy day, to sit down and listen to their blah, blah, blah for 45 minutes. Snakes is an overly kind analogy.

[spinner1001]

Originally Posted by Plinker

The CD’s they offer are from FDIC insured banks, so no risk.
If they increased the amount of the CD to $50,000 for 6 months, the added return over a 4% CD would be $500. For that amount, I would be willing, on a rainy day, to sit down and listen to their blah, blah, blah for 45 minutes. Snakes is an overly kind analogy.

Please list the names of those FDIC-insured banks paying 6% interest on FDIC-insured CDs.

If no FDIC-insured banks do that, those 6% CDs are NOT riskfree.

[Plinker]

Originally Posted by spinner1001

Please list the names of those FDIC-insured banks paying 6% interest on FDIC-insured CDs.

If no FDIC-insured banks do that, those 6% CDs are NOT riskfree.

There are no banks offering 6%. First Financial is simply adding their own cash to an FDIC CD in order to get to the stated return in exchange for you coming in and listening to their sales pitches. The person I know said he put in $20,000 and 6 months later got the money he was promised. He did not buy anything despite the hard sell. The check was written to the bank and not First Financial. Is the amount above the CD insured? Probably not. This offer, as described, would not be worth my time. Obviously, if considering this product, we would all need more details. Best advice is to stay away.

[oneclickplus]

Originally Posted by Plinker

They are representatives of banking and insurance products. The CD offered is for 6 months and they are subsidizing the bank CD to the higher rate they quote in order to get you to meet with them. I believe the maximum you can invest is $20,000. Think of it as the free dinner seminars without the free dinner but instead with a short-term CD bump. Current 6-month CD rates are about 4% so you are at 6%. You can pocket about $200 for the hassle of meeting with them. I have not met with them but know someone who did and signed up for the higher rate. You decide if it’s worth your time and aggravation.

I've bumped into them in the past up in Maryland. This is EXACTLY who they are ... an insurance company using artificially inflated rates on a short term CD with a maximum deposit amount so they can get a "sit down" with you. And, yes, you must open it in person. Steer clear.