First American Trust?
 

Has anyone had any experience in dealing with "First American Trust"? They have an office in The Villages and one in Ocala. They frequently advertise attractive CD rates in the newspaper.

I have given up on CDs. I have an Ameriprise financial advisor, and regularly do much better then CDs rates with very little risk. Have not dealt with the company mentioned, but I have dealt with Citizens First and Community Bank and Trust and was treat well from both.

I'm assuming muni's ?

No, stocks and various other funds to spread the risk to an acceptable level. Very few bonds, and no CDs.

Caveat Emptor. Make sure you understand why the rates are attractive.

Are they with an FDIC insured bank? Are there onerous restrictions?

First American Trust?
 

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Thanks for all the feedback thus far.

I did received a communication in writing stating that the funds are FDIC insured.

First American Trust?
 

Insured against company fraud or bankruptcy, not loss of principal. Devil is in the details. Do your due diligence or consult someone with a fiduciary relationship with you.

It is a promotional deal to get new customers. You are issued a CD for the going rate (around 1 %) and First American Trust cuts you a check for the rest. You can only buy a 20,000 one, or less I assume, and only one per household. So you buy a 6 mo CD with 2% APY will net you 200 bucks for 20,000. I bought one...200 bucks is 200 bucks.

Don't expect to walk in and walk out. They want to show you their annuities.

Who ever you use pay attention to costs and does the investment your needs. Be sure to research products with other sources.

What percent of your annual income do you have to pay them? If you are taking 4% from your investments each year and they charge 1% you are paying 25% of your income for what? Are they investing your money so that it earns more than when you invested it?

Disclosure: I am a financial advisor. I had an acquaintance up there who asked me about the CD rate. First gut check, there is no rate like the one he gave me. My friend was adamant when I told him it can't be a CD. It's what he told them he was looking for when he called. It took a bit of digging. They have no web page which is also odd. They are First American Trust of Central Florida, not to be confused with Central American Trust, which I imagine happens often. I didn't find a CD anywhere close to what my friend was telling me so he sent me a copy of the ad. It is an annuity, not a CD. It is issued by ELCO Life and Annuity, a B rated company. Second Opinions are a must, as is Broker check!

I suppose a name like First American Trust would elicit all sorts of warm fuzzy feelings with people not accustomed to reading about financial topics. I could never understand that mindset, still don't.

Thanks for the heads up (and honest disclosure). :thumbup: