Certificate of deposit (cd) question?

At this website I am thinking about buying a cd...
what exactly does the first paragraph mean?

and do you think it is a good investment idea?

http://www.mlnbank.com/EN/services/premc...



Thanks so much =)

It means that they are guaranteeing the interest rate that is advertised at the time of purchase. CD's pay more than standard savings accounts but you cannot take your money out with out losing part of it until the CD has matured (1 yr, 3 yrs,) whatever you chose when you purchased it. This bank is in the West Indies and, unless you are too, I would do business with a bank in your own country. I have cd's with ING.com. These internet banks offer a little better rate because they do not have actual physical locations so their expenses are lower.

Why not purchase your CDs at your local bank or credit union? I wouldn't be comfortable having an account anywhere that I couldn't visit in person....(just my own opinion).

That bank is in the West Indies. If it goes bankrupt, you will lose your deposit and will not have the government deposit insurance (FDIC, etc.) that would protect you if you invested in a bank in your own country. Not a good idea.

I have come across Millenium Bank before and considered investing in a high rate CD. But then I came to my senses.

I just don't feel comfortable investing my money outside of the USA.

I will list a website that might give you some options. It lists International Currency CD's. You can purchase them through a bank here in the USA. They are insured by the Government.

However, the risk involved is the currency fluctuations. If the currency you invest in falls agains the dollar, it will effect your CD in a negative manner. And if the currency you invest in rises against the dollar, it will effect your CD in a positive manner.

You might check it out. I am only trying to give you some other options. Personally, I would be a little gun shy to invest with Millenium.

Best of Luck